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Explain Choosing an Appropriate Business Ownership Model
List possible alternatives and provide reasons why your solution is best. Include comments related to ethical issues that may arise.
Scenario:
Buddy operates a handyman business performing various home repairs and renovations. Buddy is successful and has enough loyal customers to keep him busy, along with at least two workers. Buddy occasionally rents out some of his small equipment to other handymen and clients.
Buddy also purchases homes that need renovation and then rents or sells the properties, depending on the market. Most of the homes he owns are heavily mortgaged.
Buddy and his wife own a house, in which they have a reasonable amount of equity. Buddy's wife handles the books for the business.
Which type of business organization is best for Buddy? Explain the advantages and disadvantages of your selection and why your answer is best.
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