BUS525 OregonTech Choice of Entities Forms Of Business Ownership After reading “Handout: Choice of Entities” (attached), combine your understanding of the

BUS525 OregonTech Choice of Entities Forms Of Business Ownership After reading “Handout: Choice of Entities” (attached), combine your understanding of the facts presented along with your knowledge of business entities to select the most suitable business form for the scenario. (Sole proprietor, partnership, LLC, or Corporation). Be sure to discuss the characteristics of the business formation you chose and state why those characteristics make it the best formation for the scenario. Also discuss why all or some of the characteristics of other entities make them less suitable for the situation. This assignment requires objective, critical thinking and the ability to apply the law of business entities to the facts that are presented to you. Your response should be a maximum of two pages in strict APA format. Which Entity Should I Choose?
Instructions: Read the following fact pattern. Read the facts presented in the fact pattern
below. Combine your understanding of the facts presented along with your knowledge of
business entities to select the most suitable business form for the scenario. (Sole
proprietor, partnership, LLC, or Corporation). Be sure to discuss the characteristics of
the business formation you chose and state why those characteristics make it the best
formation for the scenario. Also discuss why all or some of the characteristics of other
entities make them less suitable for the situation. This assignment requires objective,
critical thinking and the ability to apply the law of business entities to the facts that are
presented to you. Your response should be a maximum of two pages.
FACT PATTERN
Johnny came to you seeking advice on a new business venture that he plans to partake in.
Johnny wants to open a new bakery business. Initially, the bakery will only service retail
customers that enter the physical building. Johnny has been looking for retail spaces for
the bakery. Most of the suitable spaces will require him to enter into a five year
commercial lease.
If successful, Johnny would like to expand the bakery business to selling wholesale baked
goods to grocery stores throughout the country. If the bakery business is able to expand
like he hopes, he would want to add partners and investors to assist him with the
growth—both management-wise and monetarily.
Johnny is not new to food industry. In fact, he currently has two successful restaurants
that have been very lucrative for him. His third restaurant did so well that he decided to
sell it in order to provide him with more time and the funds to start his bakery. The other
two restaurants are still in operation. Johnny is still the owner with no intentions of
changing that. Because Johnny already owns two restaurants, he needs lots of
flexibilities in his business. Johnny has always been a “doer” and does not like to go
through red tape in order to get things done. He runs his businesses in this freeform way
as well.
Johnny wants the bakery finances to be separate from his other restaurants. He is also
weary of losing the lucrative restaurants due to mistakes made in the bakery. He plans to
get insurance but he still worries that a mistake in the bakery could ruin his culinary
empire.
If Johnny’s timeline for success is accurate, he hopes to be wholesaling his fine baked
goods within three years. At the five year mark he plans to aggressively open additional
stores—either owned by him or through franchise agreements. By year seven, he will
liquidate a large portion of his ownership in the bakery in order to diversify his holdings.
Help Johnny decide which business formation is best for he and his business.

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