Assignment: Business Entity Implications For Contracts
For this assessment, consider that you work as a manager in a relatively small, privately-owned business. The company president (who is also the owner) inherited the company from his father, and thus has never started a business.
He is considering creating a spin-off business (possibly with one or two associates), but is unsure of which type of business entity would be best to use for that new business. The new business will be utilizing numerous suppliers and distributors, and thus contracts will play a major role in the success of the business. The president knows you took a university-level business law class, and asked you to put together a paper analyzing the four most common business entities in the context of contracts to help him decide what to do.
Research each of the following types of business entities:
• Sole proprietorship.
• Partnership.
• Corporation.
• Limited liability company (LLC).
Consider potential factors and issues associated with each of these types of business entities in the context of contract law. Write a paper analyzing the following for each of the above four types of business entities:
• Who in the business entity would typically create and negotiate a contract? Explain the pros and cons of each entity in this context.
• Who in the business entity would typically approve and sign a contract? Explain the pros and cons of each entity in this context.
• Who in the business entity would have liability associated with the contract? Explain the pros and cons of each entity in this context.
• What are the effects of the type of business entity on the ability to contract for the sale of the business? Explain the pros and cons of each entity in this context.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.