Business Ownership: Choosing Relevant Option Essay

Introduction

There are several types of organizations, and it is essential to examine them before opening any business. For instance, a corporation is a united group of partners where each of them has a part in the industry. A sole proprietorship is a business owned and operated by a single person. A limited liability company is a hybrid of corporation and partnership. Probably, Otis should start running his business with sole proprietorship because it is easier to create; today’s simplified method of receiving documents for individuals is more accessible than before.

Sole Proprietorship

Otis will take responsibility for his business by himself, and he does not need any accomplices. It is essential to consider that there are no formal requirements for running a sole proprietorship (Cappellino, 2020). According to the source, anyone who wants to start this type of business and has money can conduct it (Cappellino, 2020). In contrast, when the person wants to start with a corporation or limited liability company, he has to gather people, which can be problematic. It has a specific type of taxation, which will cost more than in sole proprietorship (Cappellino, 2020). Corporations are similar in this sense, and for Otis, it might be costly to spend money on taxes. With a sole proprietorship, Otis does not need to separate rights on ownership with his partners. It becomes one more benefit, and Otis will own his business alone. In addition, it is easy to enter and exit the market; for example, if Otis wants to close the company, it will not be hard to conduct.

Responsibility

The employer is responsible for the actions of his employees, significantly if they harm visitors of the agency. Elements of an agency relationship are crucial here. They include the consent of the employer and apprentice, actions by the employee on behalf of the company, and the employer’s control (Enfield & Kockelman, 2017). Usually, the responsibilities of both sides are written in the contract, which the agent signs during the hiring process. By state rules and laws, the owner should create an agreement where organizational practices are listed. If Otis chooses sole proprietorship, he is fully responsible for Kelly’s actions. However, there is a detail about Kelly’s hourly pay; if Otis decides to fine this employee, he might collect payment from her partially. It is not obligatory because probably Otis will resolve this issue with the customer’s flip on the wet floor personally with this customer on behalf of the company’s owner. Overall, the responsibility and recovery for the customer’s injury depend on Otis and his written agreements with employees.

Sweetener Usage

There are obvious financial benefits of artificial sweeteners because nowadays, many people refuse to eat regular sugar and shift to sugar-free products. People might want to eat cookies, but they may not buy them because it contains sugar. In this case, using sweeteners might be beneficial and increase the profit of Otis. Financially, Otis will gain more money because of people’s tendency for a healthy life. However, there is an opinion that the sweetener might cause severe illnesses, including cancer (Liu et al., 2021). Various scientists and medicals are still scrutinizing the reliability of this information as it is fully proven yet. Ethical consideration is that Otis should denote that his product contains artificial sweetener so that people might read and decide whether to buy it or not. In this case, Otis will be honest with his customers; in case of some illnesses or allergic reactions, Otis may protect himself by making the composition of his cookies available for every customer.

Conclusion

Overall, a sole proprietorship is a good choice for Otis, as he does not need to share his business with other people. Moreover, it is easy to start, and there are no long documentation processes. Otis is responsible for generating written contracts with his employee to ensure the safety of workers and customers. In addition, he should write the composition of his sweeties to ensure customers’ awareness of his production.

References

Cappellino, A. (2020). How to choose the right business organization form. [Word document]. Web.

Enfield, N. J., & Kockelman, P. (2017). Distributed agency (Foundations of human interaction) (1st ed.). Oxford University Press.

Liu, L., Zhang, P., Wang, Y., Cui, W., & Li, D. (2021). The relationship between the use of artificial sweeteners and cancer: A meta‐analysis of case–control studies.Food Science & Nutrition, 9(8), 4589–4597. Web.