Paper on Business types

User Generated

Erncre1000EE

Business Finance

Description

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:
    • Title of paper
    • Student’s name
    • Course name and number
    • Instructor’s name
    • 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 in addition to the course text.
  • Must document all sources in APA style as outlined in the Ashford Writing Center.
  • Must include a separate references page that is formatted according to APA style

Below is the course text

Rogers, S. (2012). Essentials of Business Law

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Attached.

Acme Fireworks Business Types-Outline
Thesis: The determination of the business contracts is important for the business and helps in
focusing on the governing of the business and the roles of the employees.
I.

Overview
A. Expansion
B. Change of entity

II.

Governed by Common law or Uniform Commercial Code (UCC)
A. Decision making
B. Role of contracts

III.

Elements of an Enforceable Contract

A. Offer
B. Acceptance
C. Consideration
D. Capacity
IV.

Personal liability to Acme Fireworks in case of Injury of a Spectator

A. Principle responsibility
B. Protection
V.

Operation as a Sole Proprietor
A. Limitations
B. Decision making


Running head: ACME FIREWORKS BUSINESS TYPES

Acme Fireworks Business Types
Name
Institution

1

ACME FIREWORKS BUSINESS TYPES

2

Acme Fireworks Business Types
The determination of the business contracts is vital for the business and helps in focusing
on the governing of the business and the roles of the employees. The assessment of contract law
enables the analysis of the different areas of the statutes, and this guides the uniformity of the
application of the law and the jurisdiction of the operation of the businesses. The control between
different parties in written or oral and that includes employment, money services and goods is
guided by the contracts, and this puts the law into motion. The law defines contracts as
enforceable where there is an agreement by the parties through the signing of legal
documentation. The agreement between the parties leads to the creation of a contract that is
enforceable.
Overview
Acme in the formulation of the business plan for the company in their expansion, they
need to focus on the contracts between the requesting company for the fireworks and Acme. The
changing of the entity from a sole proprietorship means there is a change in the contracts and the
increase of the employees leads to the creation of new enforceable contracts. The expansion of
the size of the company creates the need to focus on the interests of the company, and this entails
protecting the interest of the company from the different lawsuits and the risks that company
faces in the hiring process. The protection of the interests of the business and the personal issues
that might arise is observed from the assessment of the treatment of the employees and the risks
that the business is likely to incur.
In the assessment of the issue of Acme in taking more businesses, there is the assessment
of the number of sales that the company is likely to make and this leads to an analysis of the
legal aspect of the registration of the business. The company should move from a sole proprietor

ACME FIREWORKS BUSINESS TYPES

3

to a Limited Liability company, and this is due to the combination of the different factors such as
existing as a separate legal person. There is payment of less taxation, and this creates the need to
observe the shareholding of the company and the running of the business to achieve the
efficiency of the company in meeting the expectations of the business. The distinction of the
limited liability company leads to the separation of the entity from the owners, and this means
there is an assessment of the purpose of creation of the entity and the reassurance of the
protection of the assets of the company.
The business can raise its debts, and this leads...


Anonymous
Really great stuff, couldn't ask for more.

Studypool
4.7
Indeed
4.5
Sitejabber
4.4

Related Tags