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Betty’s Coffee Business Form Case Study

The pluses and minuses of each of the various business forms

Before establishing a coffee shop, Betty has to evaluate the advantages as well as the disadvantages involved in the available options of businesses forms. In this regard, Betty has been faced with various options including a franchise, limited liability company, sole proprietorship as well as joint venture. In addition, operating a corporation is another business form that Betty can adopt to operate the business.

To begin with, adoption of a franchise would enable Betty to be supported by the gains accrued because of the connection to larger firms. In addition, such connections will offer the autonomy that is necessary for Betty to succeed in the operations of the business (Henderson, 2009). Further, the franchise is a model of business that provides the necessary training in the operations of the business.

By acquiring the franchise, Betty has been presented with a firm that has already acquired a conventional image and status as well as proven management procedures. The franchise would also enable Betty to reach out for the Christian community. However, buying a franchise would involve adherence to the formal agreement with the franchisor and revamp the concord at the conclusion of the franchise (Henderson, 2009).

Second, operating a Limited Liability Company (LLC) offers additional advantages allowing Betty to gain from the liability benefits such as taxes rebates. Nevertheless, LLC experiences inconsistency among the shareholders concerning the dues. Further, interpreting the state laws that create the limited liability status is another disadvantage of such form of business (Mancuso, 2010).

On the other hand, operating a partnership would enable Betty together with other partners share the revenue, ventures as well as the running of the firm. However, operating a partnership would deny Betty the sole ownership of the organization (Fontana, 2010).

Finally, operating as a sole proprietor would give Betty the total control of the firm as well as exposing the business to minimum government regulations. On the contrary, Betty would be personally responsible for the huge chunk of the business assets (Fontana, 2010).

Consequently, the liabilities could affect Betty’s individual resources. In agreement with other responses, it is evident that operating franchise is the best business that Betty should adopt. The reason is that the franchise is a form of business that is readily available to Betty. In addition, nearby franchise is already offering Betty the necessary training vital for the management of the business.

Whom Betty should take into the business with her

In the operations of the business, Betty should consider employing Alice into the firm. However, Betty should contend with the opposition Alice faces from the husband. In essence, incorporating a person with the same spiritual values in the operations of the business exemplify Betty’s values of sincerity, veracity as well as good quality work in the affairs of the firm (Henderson, 2009).

Further studies show that the integration of spiritual values into the business enhances the returns, productivity, client loyalty and the organization’s brand image. Moreover, in the competitive business environment experienced today, organizations that allow employees to reflect on the inner values and ensure the provision of personal development prospects have increased chances of success.

Corporate name and its good for trade marking purposes

The name that Betty has been considering to use is an active, legal and non-profit corporation in North Carolina. In other words, the name Betty has been planning to use already exists as a trademark by another firm. Therefore, Betty has no option but to look for another name because using the name would result into the contravention of the North Carolina legislation that stipulates copyright infraction.


Fontana, P. K. (2010). Choosing the right legal form of business: The complete guide to becoming a sole proprietor, partnership, LLC, or corporation. Broadway, NY: Atlantic Publishing Company.

Mancuso, A. (2010). LLC or corporation: How to choose the right form for your business. Berkeley, CA: Nolo Publishing.

Henderson, J. P. (2009). The small business self-starter: How to manage pitfalls of a small business start-up. Bloomington, Indiana: iUniverse.

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1. IvyPanda. "Betty’s Coffee Business Form." November 25, 2019. https://ivypanda.com/essays/bettys-coffee/.


IvyPanda. "Betty’s Coffee Business Form." November 25, 2019. https://ivypanda.com/essays/bettys-coffee/.


IvyPanda. 2019. "Betty’s Coffee Business Form." November 25, 2019. https://ivypanda.com/essays/bettys-coffee/.


IvyPanda. (2019) 'Betty’s Coffee Business Form'. 25 November.

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