Replies for Individual Business Organization



Replies for Individual Business Organization

Reply 1: New Business Foundation on Shaky Grounds

Mark

Liberty University

Business Form

On the basis of the first business response, it is noticed that there are a number of different positive and negative aspects of the business form. Some positive responses include having limited liability like any proper business corporation as prevents loss to personal assets in case of loss (Mancuso, 2005). Another positive aspect associated with this system is that it also assists in escaping double taxation. For C or regular companies it is easy to offset their tax losses in the future, but new companies are generally taxed on the basis of their income level and dividends paid to shareholders as they are taxed at the personal level.

The feature of LLC provides an opportunity for becoming a public corporation, but at a small scale business as Mrs. Wilson's, it is not feasible to make it corporate business. A positive point for the subchapter corporation is that they can avoid double taxation, and profit and losses flows are same as sole, general, or limited proprietorship. Thus, early losses can be used to offset income from other sources, and this can assist in saving taxes. This provides flexibility, and ownership. LLC also provides a variety of best opportunities for maximization of business capital cost, investment return etc.

Business Partners

Mrs. Wilson faces problems in making business partner that can be according to Wolfe's seven rules i.e. partners with an entrepreneurial spirit, and vision, skilled, experienced, who can offers credible resources, financial stable etc. When she faced these problems, she made her husband as her partner. Alice and Emma also have their own problems.

Naming the business

Another important concern faced by Mrs. Wilson was the selection of the business name and “The Gathering Place” wan not a good name. One positive aspect is that this is not available in North Carolina, but there are a number of names already existing in the market with the versions of “the Gathering”.

Franchising options

There are also problems with the lack of experience in retail coffee business. Another fact is that most of the businesses fail due to this reason. There is only one coffee business that succeeded, which is dunkin donut, such franchises required capital investment.

Marketing Observations

Mrs. Wilson observed that she needs, to choose whether she wants to own Christian Coffee house, or a coffeehouse owned by a Christian. Choosing ...