BUS 311 Ashford University Proposing Change of Business Entity at ACME Fireworks Paper

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Business Finance

BUS 311

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Description

The owner has asked you to do the following:

  • Determine if the contracts with the businesses will be governed by common law or the Uniform Commercial Code (UCC), and explain why.
  • Analyze whether the owner formed a contract with the businesses, and apply the five essential elements of an enforceable contract.
  • Explain the potential personal liability to Acme Fireworks if a spectator is injured by a stray firework from a fireworks display.
  • Discuss the different employment types and relationships relevant to agency law, and analyze the advantages and disadvantages of each type specific to Acme Fireworks.
  • Explain why Acme Fireworks should not operate as a sole proprietorship. Recommend a new business entity, and provide rationale to support your recommendation.


Please see attached document for full assignment and requirements. 2-3 final paper outline then 8-10 page for final paper (double spaced APA format)

Unformatted Attachment Preview

Final Paper Proposal Submit an outline for your Final Paper that includes the following: • • • Develop an introduction with a thesis statement for the Final Paper. Create an outline of the major headings with a two- to three-sentence description of what you will discuss under each heading. Provide a references page for the sources used in the Final Paper (the Final Paper has a minimum requirement of five scholarly sources). o State the complete bibliographic citation for the scholarly source following APA guidelines The outline must be two to three double spaced pages in length (excluding title and reference pages) and formatted according to APA style. Final Paper You are the manager of Acme Fireworks, a fireworks retailer who sells fireworks, puts on ground display fireworks, and large aerial display fireworks. The company started in the owner’s garage two years ago and now has 15 employees that you manage. The company started as a sole proprietorship, and the owner has never changed the entity. The owner has informed you that the company has received inquiries from several large businesses wondering if the company could create several fireworks displays on a regular basis. The owner told the inquirers that the company could fill such display orders, and a price per display was agreed upon. It was discussed that most of the cost for a fireworks display is for skilled labor, insurance, and the actual service of setting off the fireworks. No other details were discussed. The owner is anticipating that new employees will need to be hired, but he is worried that if the large orders for fireworks displays do not continue, the company will not have the funds to pay the new employees. The owner is now considering changing the business entity, but he does not know what entity to form or how to form it. The owner has asked you to do the following: • • • • • Determine if the contracts with the businesses will be governed by common law or the Uniform Commercial Code (UCC) and explain why. Analyze whether the owner formed a contract with the businesses, and apply the five essential elements of an enforceable contract. Explain the potential personal liability to Acme Fireworks if a spectator is injured by a stray firework from a fireworks display. Discuss the different employment types and relationships relevant to agency law, and analyze the advantages and disadvantages of each type specific to Acme Fireworks. Explain why Acme Fireworks should not operate as a sole proprietorship. Recommend a new business entity, and provide rationale to support your recommendation. For each task, be sure to analyze the relevant law, apply the facts to the law, and make a conclusion. The paper • • • • • • • • Must be 8 to 10 double-spaced pages in length (not including title and references pages) and formatted according to APA style Must include a separate title page with the following: o Title of paper o Student’s name o Course name and number o Instructor’s name o Date submitted Must begin with an introductory paragraph that has a succinct thesis statement. Must address the topic of the paper with critical thought. That is, describe what your response is to the content, either positive or negative, and defend your position. If multiple options, alternatives, and/or positions are present and are being rejected, you must also defend the reasons for rejecting an option. Must end with a conclusion that reaffirms your thesis. Must include at least five scholarly sources Must document all sources in APA style. Must include a separate references page that is formatted according to APA style.
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Explanation & Answer

Attached. Please let me know if you have any questions or need revisions.

Running head: ACME FIREWORKS OUTLINE

ACME Fireworks Outline
Student’s Name
Institutional Affiliation
Date

1

ACME FIREWORKS OUTLINE

2
Outline
ACME Fireworks
Introduction

Contracts can be a great deal for a company in its growth path. While forming contracts, it is
important to consider if all the elements of a contract are met (Srinivasan & Brush, 2006).
ACME has been running as a sole proprietorship form of business. The influx of inquiries at
ACME Fireworks means that the company needs to change from sole proprietorship to another
form of business entity that can accommodate more workers and reduce risks to the business.
Thesis statement
With the growing demand of the products and services of ACME Fireworks, it is important to
change the entity from a sole proprietorship to a Limited Liability Company. As a Limited
Liability Company, ACME Fireworks will be in a position to increase its scope of operations and
hire employ many workers effectively.
1. Determining if the contracts with the businesses will be governed by common law or the
Uniform Commercial Code and explaining the reason for the choice.
Uniform Commercial Code (UCC) is the most appropriate law to govern the operations of the
ACME Fireworks (Cohen, 2005). Ideally, fireworks are touchable items that qualify them to fall
under the governing of UCC.
2. Analyzing whether the owner formed a contract with the businesses and applying the five
elements of an enforceable contract

ACME FIREWORKS OUTLINE

3

Essentially, the owner of the ACME Fireworks established an agreement with other
organizations and is liable on his part of the agreement. the five elements of the enforceable
contract include;
Offer: Refers to an invitation to form an agreement (Peel & Treitel, 2007)
Acceptance: Agreeing the terms and conditions of the offer
Consideration: Evaluation of the legal implications of the contract
Legality: refers to the degree to which the agreement is legal and not offending any of the
involved parties
Capacity: refers to the observance of conditions that may or may not qualify an individual or
organization to enter into an agreement.
3. Explaining the potential personal liability to ACME Fireworks if a spectator is injured by
stray firework from fireworks display
The company is liable for injuries that could potentially harm a spectator from fireworks display.
Ideally, a stray from fireworks display can be perceived as faulty, meaning that the company will
be held liable for injuries caused on the spectator.
4. Discussing different types of employment and relationships relevant to agency law and
analyzing the advantages and disadvantages of each type specific to ACME Fireworks.
Essentially, there are different employment types that ACME Fireworks can adopt to meet the
various inquiries from other businesses. In terms of agency law, the manager of ACME

ACME FIREWORKS OUTLINE

4

Fireworks is responsible for creating contracts with other businesses and remaining liable for the
outcomes (Rasmusen, 2004).
5. Explaining why ACME Fireworks should not operate as a sole proprietorship and
recommending a new business entity as well as providing a rationale for the same.
ACME Fireworks should not operate as a sole proprietorship because of the increasing inquiries
and growth capacity of the business. The organization should run as a Limited Liability
Company (Cappellino, 2020). As a Limited Liability Company, ACME Fireworks will be able to
increase business owners in future and experience additional advantages (Everhart, 2018).

ACME FIREWORKS OUTLINE

5
References

Cohen, K. S. (2005). Achieving a uniform law governing international sales: Conforming the
damage provisions of the United Nations convention on contracts for the international
sale of goods and the uniform commercial code. U. Pa. J. Int'l Econ. L., 26, 601.
Everhart, J. R. (2018). Unlimited tax liability: a common misnomer of limited liability company
taxation in the United States. Small Business Institute Journal, 14(1), 44-51.
Peel, E., & Treitel, G. H. (2007). The law of contract (pp. 1-2). London: Sweet & Maxwell.
Rasmusen, E. (2004). Agency law and contract formation. American Law and Economics
Review, 6(2), 369-409.
Srinivasan, R., & Brush, T. H. (2006). Supplier performance in vertical alliances: the effects of
self-enforcing agreements and enforceable contracts. Organization Science, 17(4), 436452.


Running head: PROPOSING CHANGE OF BUSINESS ENTITY AT ACME FIREWORKS

Proposing Change of Business Entity at ACME Fireworks
Student’s Name
Institutional Affiliation
Date

1

PROPOSING CHANGE OF BUSINESS ENTITY AT ACME FIREWORKS

2

Proposing Change of Business Entity at ACME Fireworks
Introduction
Contracts ca...


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