CUNY Bernard Advantages & Disadvantages of A Sole Proprietorship Discussion

User Generated

muvmunat

Business Finance

CUNY Bernard M Baruch College

Description

Jose Rivera is a real estate entrepreneur. Earlier in his professional life, Jose was a successful executive with Mattel but he resigned in a desire to pursue other opportunities that would allow him to be his own boss.Today, Jose and his eldest son, Jorge, own and manage several large apartment buildings in Queens.The real estate business has been so successful that Jose owns home sin both New York city and the Hamptons and a 40-foot yacht, which is moored near his summer home. Jose’s two youngest children are enrolled in private schools and Jose plans to send them to exclusive and expensive private colleges, like the one their brother Jorge attended.Jose has numerous investments in addition to the real estate properties, which when the time is right, can be quickly converted into cash for college expenses.

Despite his real estate success, Jose has long desired to get back into the toy business and is now in the process of purchasing Toy Builder, a small establishment that manufactures electronic toy components for a large, nationally known manufacturer of toys and electronic games. Jose looks forward to adding Toy Builder to his assets, as he hopes to utilize some of his prior Mattel experience to make the company even more successful. The small Toy Builder factory is in New Jersey and utilizes machinery that is highly specialized.New employees receive an orientation from the human resource department, as well as training in manufacturing processes and safety regulations.

Which form of ownership should Jose select for Toy Builder (e.g. sole proprietorship, partnership, corporation or some other structure) and why?It is wise to identify the advantages and disadvantages of whatever structure you select.

Your answer should be two-three doubles spaced typed pages.

NOTE –Toy Builder is a fictitious company, you do not need to know more than what I have stated above about Toy Builder.

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Explanation & Answer

Attached.

1
BUSINESS OWNERSHIP

Business Ownership
Student’s Name
Institutional Affiliation

2
BUSINESS OWNERSHIP
Business Ownership
Jose Rivera Should chooses to open the Toy Builder firm on sole proprietorship ownership. He
had tried to be in partnership with Mattel in the business at first, but he had to leave to find
means to be his boss, hence should explore sole ownership of the toy-making company. It would
be the best option as trying to do the business he long desired with his son Jorge, may not
succeed as Jorge may not have the same passion as his father. Jose should, therefore, be the sole
owner of the Toy Builder firm to avoid it failing the second time and most of all, to fulfill his
long desire to see himself back in that sector.
Advantages of a sole proprietorship
For sole propri...


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