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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. 

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:

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  • 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.

Based on your executive audience, your executive briefing should be no more than three pages, and should be well organized and written in clear, succinct language. Follow APA rules for attributing sources that support your analysis and conclusions.

Academic Integrity and APA Formatting

As a reminder related to using APA rules to ensure academic honesty:

  1. When using a direct quote (using exact or nearly exact wording), you must enclose the quoted wording in quotation marks, immediately followed by an in-text citation. The source must then be listed in your references page.
  2. When paraphrasing (using your own words to describe a non-original idea), the paraphrased idea must be immediately followed by an in-text citation and the source must be listed in your references page.

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