write 400–600 wordsthat respond to the following questions with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas.
Part 1 (Post this response in the main U4 DB thread “Unit 4 Discussion Board”)
As you reflect on your time at Phishy Pharmaceuticals, you decide it is time to move on with your career. You have always wanted to start you own restaurant business and be an entrepreneur. As an entrepreneur, you must decide whether the business should operate as one of the major forms of business organization—sole proprietorship, general partnership, limited partnership, limited liability partnership, limited liability company, or corporation—or under other available legal business forms. Your selection depends on many factors, including the ease and cost of formation, the capital requirements of the business, the flexibility of management decisions, government restrictions, personal liability, tax considerations, and the like. You must choose one of the major forms of business that is best for your business. (For this assignment, you should not choose a sole proprietorship for your business entity.) In your initial Discussion Board post, you must address each of the following:
- The defining legal characteristics of your business entity
- The advantages and disadvantages of your legal business entity
- The operating agreement required by your entity
- Why that entity choice is the best for your business
Part 2 (Post this response in the appropriate topic within U4 DB [labeled “FOR” and “AGAINST”])
After researching the different legal business entity options for your restaurant, you have decided to operate as a “C” corporation.
Based on the first initial of your last name, complete the following:
- First initial A–L: Provide an argument that supports your decision to start your restaurant as a “C” corporation. Submit your position by posting in the Unit 4 Debate Forum under the FOR topic.
Case Example: Phishy Pharmaceuticals is a corporation that recently kicked off the sale of its new weight-loss pill, Lose It Fast. After 3 months of sales, the management team has received some troubling reports of some unanticipated side effects caused by the pill. The management team asks the accounting department to run some numbers to determine how much it would cost to recall Lose It Fast, to suspend manufacturing, and to conduct more tests to determine the pill’s safety and other possible side effects.
After running some numbers, the accounting department states that it would be more cost-effective to leave the product on the market shelves and propose settlement proceedings with anyone who is injured and initiates a lawsuit.
The corporate attorney has advised that the product’s packaging states that the pill is not FDA-approved, and says off the record that everyone who buys a weight-loss product knows there are some risks involved, so it is likely that the majority of injured consumers will not initiate a lawsuit.
If you recall the product, it will result in a delay of dividends paid to shareholders, a loss in revenue affecting shareholder profit, and possibly your job as CEO.