Case Scenario on Business Organizational Forms Students Name Institutional Affiliation Date In the given scenario the best business organizational form is sole proprietorship. This is because each individual is having personal interests which not either of them would agree to. In case there were no personal interest the best form would have been partnership. However due to the fact that Beth and Adam want to benefit more than Laura and there is no equality in profit and loss sharing as well as contribution in the would rather be run as a sole proprietorship rather than a partnership. According to Hakim Syal & Abrar (2015) if the partners cannot agree on equal responsibility and fairness in running the business then it is very likely to fail regardless of how valid the business idea would be. References Chowdhury A. A. (2013). Proprietorship Firms: Advantages and Survival. SSRN Electronic Journal. doi:10.2139/ssrn.2220979 Hakim Syal A. W. & Abrar S. (2015). A guide to business structures in Afghanistan : sole proprietorship partnership limited liability corporation and corporation. doi:10.2458/azu_acku_pamphlet_hf3770_6_s935_2015 [...]
Purpose of Assignment The purpose of this assignment is to select the best organizational form, and to discuss ethical concerns with the business scenario. Assignment Steps Scenario: Adam and Laura wish to open a pet grooming shop called Dazzling Doggies Day Spa. Laura's mother Beth would like to contribute the startup costs in exchange for a share of profits, but she doesn't want to participate in the daily operations of the business. She also doesn't want to have any personal liability in the business. Develop a 350- to 700-word summary with the following information: Which business organizational form would be best given the above circumstances, and why? Unbeknownst to Laura and Beth, Adam begins to use Dazzling Doggies Day Spa's checking account to pay all his personal bills. Are his actions ethical? Why or why not? Cite a minimum of two peer-reviewed references. Format your paper consistent with APA guidelines.