Description
Scenario: You are sole proprietor presenting to a group of investors where you are seeking 20 million dollars to raise capital for your manufacturing company.
Prepare a 10- to 15-slide Microsoft® PowerPoint® presentation for your potential investors including both parts:
Part I:
Choose the one form of organization best suited for your manufacturing company and explain why:
- Partnership
- Limited Liability Partnership
- Limited Liability Company (including single member LLC)
- S Corporation
- Franchise
- Corporation
Outline for the investors which form of organization (from the list of six under the first bullet) would be the least suited and why?
Part II:
Address the following for the investors regarding the corporate form of organization only (from the list of six under the first bullet):
- Summarize for investors what legal liabilities could arise for the Director or officer of that board?
- Explain how you could minimize those liabilities for the Director or officer of that board?
Must have detailed speaker notes.
Cite a minimum of three scholarly references. One scholarly reference must be from the University Library.
Format your presentation consistent with APA Guidelines.
Explanation & Answer
Attached.
BUSINESS FORMS AND
GOVERNANCE
Institution Affiliated
Date
INTRODUCTION
Business forms refers to the structure of the
business including:
Formation
Ownership
Sources of capital
Liquidation/dissolution
Liability
Based on the nature of business a good business
form is the one that is easy to form, allows for
optimal ownership, has a wide source of capital,
is easy to terminate and owners are protected
from liability.
CHOICE OF FORM OF BUSINESS
The most appropriate form of business is LLC
given the amount of finance sought
The LLC will give investors confidence because
their liabilities are limited
It will allow them to be shareholders, not
creditors to be paid off and left
By having a stake in the business, investors can
have a say in how to run the business
JUSTIFICATION
LLC will be most appropriate because:
...
