Property law Case Study Example | Topics and Well Written Essays - 750 words - 2

Property law - Case Study Example The main disadvantages include sharing of profits among partners, has unlimited liabilities, long process of decision making due to disagreements ,and may have limited life and may end upon death or withdrawal of one of the partners(Miller,Ragazzo,& Hamilton,2011). Corporations If Betty opts for corporation as her form of business organization, the advantages she is likely to get are limited liability to debts and other obligations, it is easier to collect funds for capital and expenses, have continuous life, and easy transfer of corporate ownership. The main disadvantages include many legal and formalities procedures that may be costly and take long to complete, requires relatively large amount of capital to start, and long decision making process because it involves many people resulting in possibilities of disagreements (Dore?,2003). Franchise Setting a business as a franchise offers the benefit of operating it under the banner of an established entity hence enhanced security and support systems, working with a known branch hence less cost involved in brand creation, and establishing good business relationships especially with suppliers and creditors. The disadvantages of franchise include limited control of the business and how it is run because the owners of the brand set out the processes and rules regarding the operations of the franchise, tied to suppliers as one will be required to use the franchise supplier network, increased risk of damaging the reputation of the business if other franchise mess with the brand and reduced profits as one will be required to pay the owners of the franchise for using their brand(Miller,Ragazzo,& Hamilton,2011). Limited liability Company The advantages include limited liabilities to obligations and debts, flexible distribution of profit, and flexibility in management and decision making process. The disadvantages include limited life and hectic processes of legal and formality procedures (Dore?, 2003). Joint venture The advantage of Betty forming a joint venture include sharing of cost, access to relevant expertise, gain from innovative managerial skills and practices, spreading of risks and a large pool of capital. The disadvantages include extensive efforts and time to create the right relationship for partnership, imbalance in the levels of investment, expertise and assets invested by partners, and differences in business objectives that may hinder cooperation and integration (Miller,Ragazzo,& Hamilton,2011). In my opinion, sole- proprietorship is the best option that Betty should consider when establishing her business. Since she has a potential customer base of Christians in her area and a source of capital from her husband, she should set up a sole proprietorship business because it is easy to start, she will be the sole manager of her business and so she can apply her Christian values when running the business without interference from anyone, and since she is a mature Christian, she can eas ily attract her fellow Christians to be her loyal customers and enjoy all the profits alone (Jessup &Chipps, 1991). In case Betty opts for