Business Strategy: Mann and Roberts Case Study

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Introduction Before settling on any particular business form, a number of things should ideally be taken into consideration. These include but they are not limited to the nature of the business, the size of the business, capital requirements, the degree of risk, flexibility etc. The main forms of business include sole proprietorships, partnerships, limited liability companies and franchises. Scenario Analysis In the opinion of Mann and Roberts (2008), "the owners of an enterprise determine the form of business unit they wish to use based upon their specific circumstances." Hence the relevance of taking into consideration the specific circumstances of the Smiths in this case cannot be overstated. To begin with, the Smiths do not intend to have any other individual invest in their business. Secondly, when it comes to the nature of business, the entity the Smiths want to establish in this case is a restaurant. It can also be noted that for this undertaking, the Smiths wish to buy a property which will accommodate both the restaurant and a retail space to be rented out. Taking into consideration the scenario presented, the best form of business in this case would be a partnership. More specifically, a general partnership would be most appropriate. Discussion A partnership according to Pride, Hughes and Kapoor (2011) is "a voluntary association of two or more persons to act as co-owners of a business for profit." Unlike in a limited partnership, partners in a general

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