Case Study Toxic Waste Business Essay

1128 Words Jan 20th, 2015 5 Pages
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Assignment 1 – LGST 369
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Case Study A & B
Victoria Esposito 3088325

Case Study A – 50 %

Stan is thinking about starting a toxic waste disposal business. He plans to collect the waste from businesses that produce it and then dispose of it in a sanitary landfill. In order to start this business, Stan will need a substantial amount of money to buy and develop the landfill site and purchase five trucks capable of transporting toxic waste.

Stan should have concerns about operating this business as a sole proprietorship, a sole proprietorship exists when a person carries on a business on their own, without adopting any other form
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Even though there are also many advantages of a sole proprietorship, there are other alternative forms of business organizations that I would recommend, such as a general partnership. A general partnership is a form of business organization that comes into existence when two or more persons carry on business together with a view to a profit. In order to form a general partnership, a series of criteria must be met and understood such as; the partnership must register its name and obtain a business license, a partner cannot be employed by the partnership, all benefits of the partnership business must be received by the partners directly, all partners are personally liable for all the obligations of the business.
There are many reasons why I would recommend a general partnership for Stan, rather than a sole proprietorship. The first reason is because there is an option of a limited liability partnership, which means that individual partners are not personally liable for the professional negligence of their partners and some other obligations if certain requirements are met. Another reason why I would recommend a general partnership is because the partner legislation in each jurisdiction provides default rules, which is a kind of standard form agreement for the internal organization of a partnership that applies unless the partners agree to some other arrangement. These default rules limit disagreement

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