question archive Which of the business entities under consideration best accomplishes her business goals? Thoroughly explain the reasons for your recommendation
Which of the business entities under consideration best accomplishes her business goals? Thoroughly explain the reasons for your recommendation
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Which of the business entities under consideration best accomplishes her business goals? Thoroughly explain the reasons for your recommendation.
To accomplish her business goal of opening a Christian Coffeehouse near Denver, I recommend a Limited Partnership (LP). A partnership shares control and profits of the company with another person. A Limited Partnership limits the involvement and risk of one of the partners, hence the ideal solution with Shania’s husband being willing to invest capital but not wanting to manage the business (Kippenhan et al., 2019). Limited partnerships are easy to form with little formality necessary. In a limited partnership, the liability is the burden of the owner, and profits are reported on their personal income taxes. There is no double taxation. Interestingly, between 1990 and 2012, the number of LPs and LLCs registered in the United States rose over 750 percent (Soener & Nau, 2019). According to Soener and Nau, it's because the super-rich uses LLCs and LPs as investment vehicles due to the lack of necessary reporting and friendlier tax laws.
Perform a corporate name search using the Explore: Business Database Search to determine if the name Shania is considering is available for use in the State of Colorado. Also, assess whether the name is available as a trademark. Even if the name is available, advise Shania on whether it is a good choice. Thoroughly explain the reasons for your recommendations.
While doing a search in the business database I found several companies with similar names in Colorado. The name, The Gathering Place is not available in the state of Colorado (Colorado Secretary of State - Organization Record Confirmation, n.d.). When searching the United States Patent and Trade Office (USPTO) website, I found that The Gathering Place is not available as a trademark either (Trademark electronic search system (TESS), n.d.). Trademarks should be clear and memorable and somehow reference the association to the corporation (Review, 2021). The Gathering Place seems like it fits the criteria of a good trademark; it’s catchy, effective in relaying a message of fellowship, and memorable. But even if it is available, I would advise against it. There are too many other organizations with similar names, and the name itself does not give a clear meaning of what the business is. If Shania a name that associates the name to be a Christian coffeehouse, then she could play ideas like, Cup of Joe with Jobe.
Advise Shania on which of the interested persons she should include in her business, in what role(s), and why. Your analysis must include Biblical perspectives, such as Biblical considerations of marriage, and business relationships with non-believers. Thoroughly explain the reasons for your recommendations.
Considering the three interested individuals, her husband Marvin, her sister Kelsey, and the neighbor Carlos, I think there are opportunities for all three individuals to participate at different levels.
Marvin is a clear choice as a partner. He is supportive of the business idea and his wife. Although he does not want to be involved in the daily running of the business, he will provide financial support to the company and emotional support at home because he is supportive of his wife’s decision to open the coffee shop. Ephesians 5:25 states, “Husbands, love your wives, as Christ loved the church and gave himself up for her” (OpenBible, EVS, 2001). We don’t know the exact reason why Marvin does not want to be involved in the daily running and managing of the business; it can be because his job is too demanding, and he does not have the spare time to commit. But we know that he is willing to support Shania financially, and that is a big deal all in itself.
I think Shania needs to be very careful of involving her sister Kelsey as a partner. I would advise against it. Kelsey’s being a new Christian and her husband not being a Christian is not an issue in itself. But the fact that Kelsey and her husband disagree on whether she should work outside the home can be very troublesome for the partnership. In Hebrews 10:25, it says: “Not neglecting to meet together, as is the habit of some, but encouraging one another, and all the more as you see the Day drawing near” (OpenBible, EVS, 2001). Kelsey and her husband need to encourage one another as Shania and Marvin do. If Kelsey chooses to partner with Shania, she goes against her husband’s wishes, and the turmoil at home can spill over into the business relationship. I suggest that Kelsey volunteer or work a few hours a week at times that do not affect the family dynamics at home. Hopefully, this will offer Kelsey the opportunity to get out of the house a little without upsetting her husband and growing her spirituality with her sister.
“Walk in wisdom toward outsiders, making the best use of the time. Let your speech always be gracious, seasoned with salt, so that you may know how you ought to answer each person” (OpenBible, EVS, 2001, Colossians 4;5-6). Although Carlos is non-Christian, it does not mean that he will be a bad employee. There is an opportunity here to share the word of Christ with Carlos. Even if Carlos is not open, as long as he is willing to work within the business model set forth by Shania, then I think Carlos could make a great part-time employee. Carlso may also need to be educated a little on this “Christian thing.” Although there is a Mormon temple close by, members of The Church of Jesus Christ of Latter-day Saints do not drink coffee, nor hot beverages (Can Mormons drink coffee? n.d). They believe they are divinely counseled not to drink coffee. So The Gathering Place may not be a big draw for them.
