Assignment #1: Business Growth and Business Forms (Week 4)
Purpose:
When setting up a business, it is necessary to choose between the different business forms (sole proprietorship, partnership, LLC, corporation). The decision made about the business form will depend on the type of business and preference. In this case scenario, you are provided with three options for growth for Taira Nova’s necklet business. You will select the best business option for growth. Then, you will look at different business forms and determine the advantages and disadvantages of each business form. Using the information gathered, you will then assess the best business form for Taira Nova’s business. Lastly, you will discuss the business forms not selected for Taira.
Outcomes Met With This Assignment:
• discuss the financial, economic, regulatory, sociopolitical, and technological factors as they relate to a dynamic business environment
• identify the critical business functions and how they interact in order to position the organization to be effective in the current business environment
• explain the importance of the integration of individuals and systems to organizational effectiveness
Instructions:
You will read a case scenario related to business growth and business forms. In completing the assignment, you will analyze a case study scenario and apply the concepts learned so far in the course by answering a series of required elements. You will complete the assignment by not asking questions but by responding to each required element thoroughly and accurately answering in paragraph and sentence format without bulleting.
You will demonstrate the ability to think critically. To do so, you will use the course readings to support the ideas, reasoning and conclusions made. What this means is that you present your ideas, reasoning or conclusions. You then support the ideas, reasoning and conclusions by applying the course material and explaining the “why and how” and the “who and what.” This does not mean you will string a series of sentences together citing the course material or external source material but instead will present well-reasoned arguments for what you present. The characters in the case scenario are not in the course readings or any other source material so these characters cannot be in your in-text citation. Use the resources in the classroom to learn how to properly use APA for in-text citations and the reference list.
Read the following case scenario:
Taira Nova is a sole proprietor of an online jewelry business. She has invented a series of designs that revolve around a product called a necklet. The product is unique in that it can serve as a bracelet or a necklace. Taira patented her invention and feels strongly that she retains ownership of her creations. However, she also knows that moving forward she may not be able to do so. The business has caught on and Taira has been ponder whether to open a storefront. She knows to do so she will need a loan or obtain investment capital to make the expansion work.
The following week, several individuals approached Taira with offers for her business, making it difficult for her to make a decision. After much though, Taira put on paper the following options from which she will choose. She also has decided to keep an open mind when assessing each option.
Option 1:
Franchise R Us, a huge consulting firm for individuals interested in matching investors with products for franchising, has matched Taira with an investor to create a franchise line of necklet kiosks in malls around the country and abroad. Taira would have to turn over her patent to the investor who would invest $250,000 in the marketing of the franchise line in exchange for 50% of the licensing profits for the first three years and 40% of the profits each year thereafter. The investor will return the patent to Taira upon sale of the business or at the time he has recouped the original investment plus 7.5% interest, whichever comes first.
Option 2:
Taira could pursue a bank loan to expand her business on her own as a sole proprietorship.
Option 3:
Brooks Bezan, who owns his own storefront, approached Taira. Bezan is looking to retire in a few years. He has an existing storefront business with significant inventory. He has proposed to Taira that she come into the business as a partner. Taira would bring her online business and the jewelry designs. In return, Bezan would offer the existing inventory and storefront. Profits would be split 50/50 and Taira could maintain ownership of the necklet patent. When Bezan retires, Taira would have first right to buy his interest for half the current value of the business.
Write the Introduction
Create the introductory paragraph. The introductory paragraph is the first paragraph of the paper and tells a reader the main points covered in the paper. To help you know how to write an introduction, view this website to learn how to write an introductory paragraph: http://www.writing.ucsb.edu/faculty/donelan/intro.html
Answer the following required elements.
• Taira Nova has to make a decision between three business growth options (Option 1, 2, or 3). Each growth option potentially offers Taira a different outcome in the level of growth a business could experience. You will assess the different growth options and determine the best option for Taira to pursue. Do not depend solely on the facts provided but use the course readings from the topics covered so far, especially in week 3 to support the reasoning for the selection. Also, along with the course readings, the articles/videos below may be helpful in completing this requirement.
• Next, you will create a table that clearly identifies the advantages and disadvantages of each business form (Sole proprietorship, General partnership, Limited Liability partnership (LLP), Limited Liability Company (LLC) & corporation). The table should have three columns. The first column identifies the business form, the second column identifies the advantages and the third column identifies the disadvantages. Make sure to identify all advantages and disadvantages. Make sure to cite what is presented in table. Place the table in the paper. Don’t forget that you should provide a few sentences introducing the table in the paper.
These additional resources may be helpful in identifying advantages and disadvantages:
• Then, you will look at the characteristics of each business form in the table. Select the best business form for the chosen business growth option and explain why this business form was selected and why it is the best business form for the growth option. Make sure to use both the facts provided and the course readings to support the reasoning for the selection.
• Lastly, explain why the other business forms were not selected? Support the reasoning and/or conclusions with the facts and course readings.
Write the summary paragraph
Write the summary paragraph. A summary paragraph restates the main topics of the paper. Make sure to leave a reader with a sense that the paper is complete. The summary paragraph is the last paragraph of a paper and does not need a heading.
Review the Paper
Proofread the paper for spelling and grammatical issues, and third person writing.
• Read the paper aloud as a first measure;
• Use the spell and grammar check in Word as a second measure;
• Have someone who has excellent English skills to proof the paper;
• Consider submitting the paper to the Effective Writing Center (EWC). The EWC will provide 4-6 areas that may need improvement.
Preparation for Writing the Assignment
Before you begin writing the paper you will read the following requirements that will help you meet the assignment requirements.
• Third person writing is required. The third person means that there are no words such as “I, me, my, we, or us” (first person writing), nor is there use of “you or your” (second person writing). If uncertain how to write in the third person, view this link: http://www.quickanddirtytips.com/education/grammar/first-second-and-third-person.
• Contractions are not used in business writing, so you are expected NOT to use contractions in writing this assignment.
• You are expected to paraphrase and NOT use direct quotes. You are expected to paraphrase, which can be learned by reviewing this link: https://writing.wisc.edu/Handbook/QPA_paraphrase2.html.
• You are responsible for APA only for in-text citations and a reference list.
• The expectation is that you provide a robust use of the course readings to support ideas, reasoning, and conclusions. This means that you present an idea and then use the course readings to back up what you presented. Stringing one sentence after another using the course readings do not meet the requirement and does not demonstrate critical thinking. Critical thinking is demonstrated when they “why and how” and the “who and what” are thoroughly explained.
• You may not use books as source material.
• When using a source document, the expectation is that the information is cited and referenced with a page or paragraph number. Note that a reference within a reference list cannot exist without an associated in-text citation and vice versa.
How to Set Up the Paper
Create a Word or Rich Text Format (RTF) document that is double-spaced, 12-point font. The final product will be between 4-6 pages in length excluding the title page and reference page. You are expected to write clearly and concisely.
Follow this format. Consider making an outline to ensure the correct headings are in place and to keep you organize the paper.
• Title page with title, your name, the course, the instructor’s name; date
• Introduction – One paragraph
• Best Business Option
• Advantages and Disadvantages of the Different Business Forms
• Best Business Form for the Chosen Option
• Other Business Form
• Summary paragraph – One paragraph
