Scenario: Adam and Laura wish to open a pet grooming shop called Dazzling Doggies Day Spa. Laura's mother Beth would like to contribute the startup costs in exchange for a share of profits, but she doesn't want to participate in the daily operations of the business. She also doesn't want to have any personal liability in the business.
Develop a 350- to 700-word summary with the following information:
- Which business organizational form would be best given the above circumstances, and why?
- Unbeknownst to Laura and Beth, Adam begins to use Dazzling Doggies Day Spa's checking account to pay all his personal bills. Are his actions ethical? Why or why not?
Cite a minimum of two peer-reviewed references.
Format your paper consistent with APA guidelines.
Explanation & Answer
Running Head: Business Forms
One important step while establishing a business is to define the legal form it will take.
The form a business takes can be influenced by some factors among them the kind of business
one intends to establish, the business activity, as well as the number of individuals who ones the
business. The business form one chooses impacts how one conducts the business as far as tax
obligations, liabilities, and the level of control one has. Among the legal business forms which a
business can operate on, a sole proprietorship is the simplest to establish (Staniewski, Nowacki,
& Awruk, 2016). Depending on the activities the busines...