Discuss the advantages and disadvantages of a sole proprietorship.

When an entrepreneur starts a business, choosing the proper business structure is vital to the company’s success. When Patty Jacobs decided to start her own cleaning business, she became a sole proprietor. Her business began growing so fast, and she now does not know if being a sole proprietor is the right business structure for her new venture. Do you know when it is best to operate as a sole proprietorship?

Discuss the advantages and disadvantages of a partnership and a partnership agreement.

Trying to do a job alone can sometimes be overwhelming. Because of this, entrepreneurs may partner together to share resources and talents for the benefit of everyone involved. Partners Daniel Ramirez and Stefan Brown brought their skills and finances together to begin a new venture. Why might a partnership be a good business structure for a business? What difficulties should new partners prepare for?

Explain how a corporation is formed, and compare a corporation to other forms of business.

Brandon Jacobson and his sister, Sonya, found themselves unexpected landlords when they inherited properties that were owned and operated by their mother. Their mom reported the rental income on her personal income taxes as a sole proprietor. Brandon and Sonya were looking into creating a partnership, but they were advised that a partnership may not be the best corporate structure for them to operate under. Why is not a partnership a good choice for Sonya and Brandon? What are their other options?

Explain the characteristics of not-for-profit organizations and cooperatives.

Darrell Hammond knew he could make a difference in the life of inner-city children by giving them safe places to play. He quickly outgrew his modest volunteer activities and knew he wanted to expand to help more children. He needed a corporate structure that would allow him to take his profits and put them back into communities nationwide. What type of alternative business structure would work best for him?

Compare the different types of mergers and acquisitions, and explain why each occurs.

Companies constantly search for opportunities to expand by adding to their product lines, to enter into different geographic areas, or to gain a competitive advantage. The rationale behind mergers and acquisitions is that the resulting combined firm will be more valuable than the individual companies on their own. What is the difference between a merger and an acquisition? When do they occur?