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Business law
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Business law
It is interesting to learn that Otis loves baking cookies; it is from his friends we learn how
they enjoy eating cookies from Otis. We can also acknowledge that Otis is still employed. Thus
his friends come up with a plan and advise him to open his shop where he can employ himself and
be his boss together employing others which is an excellent idea for the community’s progress.
From the fact that Otis himself also wants to grow and look for money independently because of
the benefits of self-employment, Otis likes the idea of his friends. He starts saving the money for
his next project of setting up his shop. (Bretos et al., 2020).
Eventually, he saves some money to start a new business and decides to open it. Among
the forms of business he has in mind, sole proprietorship, corporation and limited liability
company, he is in a dilemma on which option of business forms to choose among the three and
which would work best for him. As Otis is challenged to start his new venture, he will be driven
by profit motives since business entails making profits by ensuring that he chooses the best form
of business. Otis will keep in mind that his friends are the ones that compelled him to start that
cookie baking business. He is ensured of stable and continuous customer availability. I understand
that Otis has the required expertise, gained from the previous job also he has the required resources
like enough capital, materials or cooking gas, furniture’s, and others have enabled him to open the
shop, available customers, their desire to see him will do Otis’ business to success.
Otis’ mind by now is focused on three forms of business I have just mentioned. One of
them is a sole proprietorship, also known as a sole trader. This one is an unincorporated type of
business that is owned by just the owner who pays personal incomes tax on profits the business
has generated. Going by the simplicity of Otis’ business which is a small one, a sole proprietorship
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would suit him and make him learn as he continues operating on a daily basis. A sole proprietorship
business is easier to establish or get involved within the market since there is a lack of government
regulation. Otis being a newcomer with such type of business, will face competitors with such type
of business who are experienced and have been able to understand the markets well. These types
of businesses are prevalent due to their limited capital to set up and manage. Furthermore, if Otis
chooses sole proprietorship, they will face some challenges associated with this type of business,
lacking government protection since they are not protected. This means all liabilities will be upon
the owner of the business.
Limited Liability Company is another type Otis may wish to establish. Although this type
of business is suitable, it may or fail to work out for Otis due to various reasons. A limited liability
company involves owners of the company who are legally responsible for their debts, and which
extends to the amount of capital they have inve…
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