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Question - Mr. Smith would like to start a catering business. He has experience as a chef at a local restaurant and would like to venture out on his own. Smith has asked Mr. Jones to go into business with him. Jones has no experience as a chef but does have contacts in the restaurant world, and would be able to supply the financial backing.
Mr. Smith has come to your office with some concerns. The catering business is difficult. He is worried that if he fails he could lose his home and be unable to send his children to college. However, he has always dreamed of being his own boss. He does not want Mr. Jones to have any say in the day to day decisions of the business since he has no prior catering or restaurant experience.
Please explain three different types of business organizations (ex. sole proprietorship, partnership, corporation) comparing the advantages and disadvantages of each. Make a recommendation for the best type of business for Mr. Smith and indicate your reason for this recommendation.
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