Business Case Study

Decent Essays
(A)Combined they have 30,000 dollars in total start up costs,which might not be enough money because,they will need a building and computers of there own.So they could get a bank loan and have to pay off their debt or they can get a 4th partner who will be a limited partner and just pump money into the business.An issue might be that they are all friends and friendships can cause issues for the business,which could result in the bankruptcy for the business.
(B)So i think partnership would make the most sense because they all have skills that the other people need to succeed in this business.I would say give each Aaron, Mateo, and Justing each 30% and try to involve a 4th partner who gets 10% but hi only job is funding.
(C)I don't think
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(B) I would suggest to do a partnership and a 50-50 even split ,which may not sound the best because they are married and that could cause some issues,but as long as they keep there business and personal lives different and are honest with each other they can succeed with this business and keep their relationship intact.I don't think one partner should get more than the other so that way they can avoid fights about who has the majority of the business,also if they bring in another partner who has a background in business they should split it 40-40-20 so that katherine and Martin are still equally in charge.
(C)I would not recommend a limited partnership because that could cause fights,So let's say Martin gets 70% and KAtherine gets 30% martin can make any decision he wants with even discussing it with Katherine and he could cut her out of the business or fire her without any conversation with anyone.Also i wouldn't recommend a franchise or corporation because the business is just starting out and it may be too small for either of those.
(D)If they choose general partnership to think ot will be good for the business and there personal life because the ill have to be honest and discuss their ideas for the business, And that Corporation and Limited partnership aren't good ideas because corporation is usually for bigger companies not companies just starting out and limited partner one of them can do any decision without even discussing it with the other
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