Question

This week, we reviewed the different types of business entity structures that exist and the types of business transactions they generally engage in, including what they experience when sued in civil court.

Upload and submit your responses in your own words to the following questions:

• From this week’s learning, describe which main point you found most important about business entities. Identify how it relates to your life, community, or career.
• Describe the fiduciary relationship owed by businesses to stakeholders and identify how this relationship relates to you as a consumer.

Your response should be at minimum 150 words and should be in your own words. For detailed grading criteria, refer to the Reflection Rubric.

Answer 1

The point that I found most important about business entities is that the form that a business entity takes is decided upon in a manner that involves an analysis of several factors. A business entity can be organized in the form of a sole proprietorship, or a partnership, or a limited liability partnership or a limited liability company etc. Each form of an entity has its own set of pros and cons and a business selects that entity form that it thinks is most suitable for its business operations and that it thinks will add most value to its operations while minimizing its risks as well. This will relate to my career going forward when I start working and then after some time aim and aspire to start my own business in the field of fin-tech (financial technology).

The fiduciary relationship owed by businesses to stakeholders is based on the duty of care and duty of loyalty as well. A business and its managers have to take informed decisions and actions in a manner that will be reasonable and rational and that will further the interest of all stakeholders. As a consumer I have a fiduciary relationship with the company whose products I buy. As a buyer I am placing my trust, confidence and reliance on the company’s product. I rely and believe that the company’s product will help me satisfy my needs and requirements in a tangible and systematic manner. The company will have to act in a manner to ensure this.

(253 words)