Respond to the following in a minimum of 175 words:
A. Select a business you are familiar with or by conducting a search of the internet.
B. Identify its business structure (Please see Learning Topics 2.2 through 2.8 in the Learning Activities to see what is meant by the term, “business structure.”) Note that a franchise is not a business structure for the purposes of this assignment.
C. Explain the advantages and disadvantages of that business structure designation for the business.
D. Provide an example or examples.
Respond to the following students post
C&C Tots is a entertainment company for kids and adults of all ages. It was established in 2018 in Chicago,IllinoisWhere at first it was Jumping jacks and soft-play rentals for kids. Today, its business has grown and has expanded their services to adults party entertainment. Not only has the services been expanded but a location has been provided in Park Forest, Illinois to rent out for parties and entertainment.
C &C Tots is a LLC (Limited Liability Corporation)type of business structure. Some of the advantages of having an LLC type of business:
- There Is only one boss (none above)
- FlexibleTax advantage
- Limited Liability
- Less paperwork in some cases
- Privacy protection
Some of the disadvantages of having an LLC type of business:
- Fringe benefits
- Might have to pay Social Security and medical taxes
- May be responsible forunemploymentfor employees
- Can be unattractive to investors.
The good thing about business structure is you can always change it to the one that you feel is best for your business. But there is nothing with keeping it as an LLC. There are some popular LLC business that you probably donot know about like Pepsi Cola, IBM, Blackberry, Nike and Sony. These businesses are very popular and successful LLC’s.
The entity I chose for this discussion is General Motors Company American automotive company. GM was founded by William C. Durant on September 16, 1908, and they operate as a corporation. This type of business structure can operate as a “legal person” loaning and borrowing money, entering into contracts, owning assets, hiring employees, paying taxes, etc.
Advantages of operating as a corporation include personal liability protection, easier access to capital, and business security. A few disadvantages include the business being subjected to double taxation, the strict formalities and protocols, and the amount of time it takes to continue to operate within this type of business structure.
Selecting new members of the board of directors would be a changeling disadvantage for a corporation. There are so many factors to consider including if the candidate has the time to devote to the position and if they have a conflict of interest in the business.
Having protection against personal liability in business is a great advantage of operating as a corporation. As an entrepreneur, you do not have to place your personal finances, credit, and your name at risk. As I mentioned above, your business can operate as a “legal person” allowing you to keep your personal business affairs separate.