Business Entities

1287 words 6 pages
Business Entities
Jessica Perez
BUS 311 Business Law
Instructor: Janet Fiorentino
12/1/2014

As the manager of Acme Fireworks, I need to gather information to help the owner determine whether or not he should continue to be a sole proprietorship or if he should switch to another business entity. I will help him do so by explaining each entity and how they relate to his business situation.
I am the manager of Acme Fireworks, a fireworks retailer who sells fireworks, puts on ground display fireworks, and large aerial display fireworks. The company started in the owner’s garage two years ago and now has 15 employees that you manage. The company started as a sole proprietorship, and the owner has never changed the entity. The
…show more content…
The next thing I am supposed to do is to analyze whether the owner formed a contract with the businesses, and to apply the five essential elements of an enforceable contract. “A contract is a legally enforceable agreement. A contract comes into existence from the voluntary assent of two or more individuals to enter into a legally binding agreement. Mutual accord is crucial to the formation of a contract. One party, referred to as the offeror, makes an offer –a business proposition- to another; the other, known as the offeree, accepts. Provided that the other three requirements are present (consideration, capacity, and legality), a valid contract is formed.” (Rogers, 2012) The five elements of a contract are as follows:
1. Offer
2. Acceptance
3. Consideration
4. Legality
5. Capacity
According to the owner of Acme Fireworks, an offer was made and accepted, they discussed price and display orders, labor and insurance, and they were all of sound mind. Whether or not the owner of Acme Fireworks realizes it or not, he has entered into an enforceable contract. The next thing I will get into is the personal liability aspect. At this moment in time Acme Fireworks is a sole proprietorship; this means that if a spectator is injured by a stay firework from a firework display the owner is fully responsible. In other

Related

  • Starting and Naming a Business
    1464 words | 6 pages
  • Business Ecosystem
    1229 words | 5 pages
  • Business Law
    2353 words | 10 pages
  • Family Business
    2364 words | 10 pages
  • Business Combinations
    1668 words | 7 pages
  • Business Law
    1993 words | 8 pages
  • business
    1219 words | 5 pages
  • Business
    895 words | 4 pages
  • Business
    1000 words | 4 pages
  • Business
    915 words | 4 pages