Question

REQUIRED: Indicate the best or most suitable form(s) of business ownership to use to conduct the following businesses. Also, indicate your rationale for your selection. In this assignment, you are limited to a choice between a proprietorship, a partnership, a corporation, either a proprietorship or a partnership or any of the above. Remember, if there is a high degree of danger in a business or industry (high probability of accidents, loss of money, etc.), please select a form of ownership that requires limited liability.

Hint for Critical Thinking:

Example: To operate a beauty shop

Answer

a proprietorship

a partnership

a corporation

either a proprietorship or a partnership

any of the above

I have a partnership. But the quiz says best or most suitable form(s) and to select the best answer. This type of business doesn’t have the problem of massive legal liability, so it does not have to be just a corporation—but it could be. A proprietorship would work. So the best answer is “any of the above.”

1. To provide accounting services for clients for a fee.

Form:

Rationale:

2. To sell hot dogs and refreshments at a hot dog stand.

Form:

Rationale:

3. To provide demolition services when buildings are torn down.

Form:

Rationale:

4. To operate a cocktail lounge.

Form:

Rationale:

5. To apply pesticides.

Form:

Rationale:

Answer 1

1:form: corporation; rational: corporation is legal entity which have a limited liability and it can also enter in the contracts pay tax,borrow loan here accounting services fall under the corporation.

2:form : proprietorship; rational: proprietorship is the business which is owned and controlled by one individual person here selling hot dog can be done and manage alone.

3: form: corporation; rational: demolition services can only be done by making contracts which fall under the definition of corporation

4:form: partnership or proprietorship; rational: operation of cocktail lounges can be done either alone or with partners also it has a two options many people operate solely and many with their partners.

5: form: any of the above; rational: any of the above business can apply for registration in the pesticide business and after getting registration certificate they can run their business in this field.