business forms and governance 10

Scenario: You are sole proprietor presenting to a group of investors where you are seeking 20 million dollars to raise capital for your manufacturing company.

Prepare a memo discussing the following to investors:

Choose the one form of organization best suited for your manufacturing company and explain why:

  • Partnership
  • Limited Liability Partnership
  • Limited Liability Company (including single member LLC)
  • S Corporation
  • Franchise
  • Corporation

Explain for the investors which form of organization (from the list above) would be the least suited and why?

(The legal form an entity or individual takes is a decision that must be considered from a risk and liability perspective, not simply one of ease of formation or cost. Form can impact the entities ability to grow and, in some circumstances, its ability to survive. As you consider this reality and approach this assignment, consider not only the form the business takes but also the way it will be governed. Remember the law requires business leaders conduct their business ethically and within the boundaries of the law.)

 

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