Business Entities Essay - 1297 Words

Business Entities Jessica Perez BUS 311 Business Law Instructor: Janet Fiorentino 12/1/2014 As the manager of Acme Fireworks, I need to gather information to help the owner determine whether or not he should continue to be a sole proprietorship or if he should switch to another business entity. I will help him do so by explaining each entity and how they relate to his business situation. I am the manager of Acme Fireworks, a fireworks retailer who sells fireworks, puts on ground display fireworks, and large aerial display fireworks. The company started in the owner’s garage two years ago and now has 15 employees that you manage. The company started as a sole proprietorship, and the owner has never changed the entity. The†¦show more content†¦Explain why Acme Fireworks should not operate as a sole proprietorship. Recommend a new business entity, and provide rationale to support your recommendation. To address the first concern the owner’s contract should be Uniform Commercial Code (UCC) rather than Common Law due to the following: â€Å"Contracts law principles in general are uniformly understood and applied across the United States. Contract Law is governed by the common law and the Uniform Commercial Code (UCC Contracts vs Common Law Contracts, 2014).† â€Å"Common Law would lead to rejections if any changes were made to the contract (quantities, counter offers, etc.). Its terms include quantity, price, performance time, nature of work and identity of offer. Common Law does not allow revoking of the option contracts† (UCC vs Common Law, 2014). â€Å"Common Law is primarily used in real estate and the law is made by the decisions of judges in individual cases† (Rogers, 2012). â€Å"In Uniform Commercial Code (UCC) minor changes do not have any impact and the original contract does not get canceled. The quantity is the main focus of the term in UCC. Offers made by a firm are irrevocable if the deal is made in writing in UCC† (UCC vs Common Law, 2014). â€Å"Uniform Commercial Code is a statutory law for certain types of commercial transactions, including sales of goods, which has been adopted by all 50 states. Many of its rules are similar to Common Law, but itShow MoreRelatedBusiness Entities : A Business Entity1530 Words   |  7 Pages Business Entities: Each business entity is structured differently and, as a result, has unique tax implications. The types of business entities covered in this course were: sole proprietorships, partnerships, C Corporations, S Corporations, and Limited Liability Companies (LLC). The entities were differentiated by the number of owners and/or shareholder, whether they are a pass-through entity or not, and the level of liability the shareholder(s)/ owners(s) are responsible for. 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