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Business Ventures

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Submitted By sreed74
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Starting a small business can be very rewarding. A small business can provide flexibility to make time for family or other commitments and interests. It also gives a sense of independence both personally and professionally. A person’s success or failure is of their own merits. But it does not come without its challenges. For starters, you are your own motivator, IT department and finance department. No overtime pay for the countless long hours or in many cases zero benefits. Betty has some tough decisions to make. She needs to decide what form of business would be best for her business, then she needs to determine who, if anyone, will help her run the business and lastly decide if the name she has chosen is suitable.
Betty must first decide what business form would be suitable for the coffee house. There are many forms of business entities to choose. Since this is a small business a Public Corporation, Subchapter S Corporation, Closely Held Corporation, Multinational Corporation, Limited Partnership, General Partnership, and Professional Corporation can all be eliminated.
Some possibilities for Betty’s business might be.
A sole proprietorship is the easiest and least expensive way to create a business organization (Kubasek, Brennan, & Browne, 2012). The LLC or Limited Liability Company provides the advantages of a corporation with the tax efficiencies and flexibility of a partnership (Starting & Managing a Business, 2012). Franchises are relationships based on private commercial agreement between the franchisor and the franchisee (Kubasek, Brennan, & Browne, 2012). A joint venture is a partnership agreement of two or more individuals or companies who agree to share the risk, profits and/or loss (Kubasek, Brennan, & Browne, 2012). The narrative indicates Betty is the only owner of the coffee house; therefore a joint venture would not be an adequate

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