Final PaperYou 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 paperMust be 8 to 10 double-spaced pages in length (not including title and references pages) and formatted according to APA style as outlined in the Ashford Writing Center (Links to an external site.).Must include a separate title page with the following:Title of paperStudent’s nameCourse name and numberInstructor’s nameDate submittedMust 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, two of which must be from the Ashford University Library, 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 as outlined in the Ashford Writing Center (Links to an external site.).This is the OUTLINE for this Final Paper Proposal Lanisha Johnson BUS 311 (Business Law 1)Ashford University Stacey Callaway 10/12/2020OutlineI. IntroductionA. The Acme Fireworks started as a small family-owned business, and now the company wants to change its business entity from a sole proprietorship. This paper will highlight some main points about how Acme Fireworks can make contracts with businesses. What are the elements of the agreements, and what are the personal liabilities of Acme fireworks? The different employment types will be presented in the study. And some recommendations on how the Acme fireworks can perform better with the new business entity and why it should not continue the sole proprietorship will be suggested.B. Thesis Statement: Acme Fireworks can perform better by building partnership contracts with the other business that can provide both the labor and the raw materials.II. Law governing the contractThe common law will be used for the business contracts made by Acme Fireworks(George and Korobkin, 2016). The Acme Fireworks can build partnership contracts, and the common law will govern the agreement. III. Five essential elements of Enforceable contractAcme Firework builds the partnership contract with the specific business, and the five essential elements will be used in the enforceable contracts (Kelly et al., 2020);1. Offer2. Acceptance3. Consideration4. Competency5. Legal intentIV. Potential Personal Liability to Acme FireworksYes, the Acme Firework will be liable for the injuries caused by the stray firework to the spectator. The Acme Firework should compensate for the loss of the spectator. V. Employment types and relationshipsAcme Firework can hire the employees based on the following employment types and relationships (Budd and Bhave, 2010);1. Employee2. Independent Contractor3. Statutory Employee4. Statutory Non- EmployeeVI. RecommendationsA. The Acme Firework should not operate the sole proprietorship. It does not have limited liability; the business will have limited resources, and retains efficient employees will be difficult (Nickels et al., 2008).B. On the other hand, the partnership business will strengthen the company, and the liability will be shared. The financial burden is reduced. There will be more capital to manage the business and the employees (Nickels et al., 2008).ReferencesGeorge, T. E., &Korobkin, R. (2016). K: A Common Law Approach to Contracts. Wolters Kluwer Law & Business.Kelly, D., Hammer, R., Denoncourt, J., & Hendy, J. (2020). Business law.Routledge.Budd, J. W., &Bhave, D. (2010).The employment relationship. Sage handbook of human resource management, 51-70.Nickels, W. G., McHugh, J. M., & McHugh, S. M. (2008). Understanding Business 9th ed. McGraw-Hill Irwin: New York, NY.