If you were asked to recommend a legal business structurefor someone’s business, do you feel equipped with the knowledge to provide soundadvice? The person asking you would want to know the benefits and drawbacks ofeach structure and be able to determine which one fits the need. They alsowould want to understand any legal considerations involved and the steps itwould take to create the structure.For this Assignment, you will have a chance to provide thatrecommendation by assuming the role of a junior legal research team member atXYZ Corporation. The Company has been asked to review several businessscenarios for clients regarding possible business structures. You have beengiven the task of gathering some introductory information on the topic, as wellas producing a report that reviews the clients’ options for legal structuresfor their new companies.Submit your report containing recommendationsfor appropriate legal structures for the five clients’ business types. For eachscenario, address the following in your report:Choosewhich type of business structure would be most appropriate for thesituation.Listpros and cons of the recommended structure.Listthe steps required for creating this type of business structure.Includelegal considerations and examples of related legal issues, includingpersonal liability and taxes, as well as profit distribution, ifapplicable.Scenario 1Karen and Alex have worked together to create a concept toform a website development company. To do this, they have asked threeassociates to invest their own money in the business in return for receiving apercentage of the profits. The three investors will not need to be involved inany of the day-to-day management or conducting of business in the proposedcompany. (225–300 words, 3–4 paragraphs)Scenario 2A few years ago, Anika started a skateboard company calledWheels Up and she has run it as a sole proprietorship. Wheels Up has operatedsuccessfully, creating a sizable workforce and management team; however, amarket opportunity has surfaced that could create significant and sustainablegrowth. Anika wants to change the structure of her business. She is innegotiations with venture capitalists who are interested in investing in thecompany. She also has two employees, Sandra and Geoff, who are so integral tothe company that she wishes they had more of a stake in it. (225–300 words, 3–4paragraphs)Scenario 3George would like to start a landscaping business and callit Landscaping by George. The business would require the use of heavyequipment, a large truck with a hydraulic lift, and an open trailer. Because ofthat, he is fearful of causing an accident and getting sued. He is mainlyconcerned about reducing the risk of losing his house and other personal assetsbecause of something that happens with the business. (225–300 words, 3–4paragraphs)Scenario 4Jose has started a website where he sells products that hedesigns and produces himself, such as T-shirts, coffee mugs, bumper stickers,and other similar items. He wants to create a business based off this websiteand is hoping to do so in the least complicated way possible. (225–300 words,3–4 paragraphs)Scenario 5Deborah owns a bakery that is best known for her specialtycupcakes. Her most important ingredients are the gourmet chocolates Theoproduces in his candy shop. They would like to form a business structuretogether that helps them to market both of their brands and make consumersaware of the importance of the relationship of their products. (225–300 words,3–4 paragraphs)Note: Be sure to reference at leastone scholarly source for each scenario in your report tosupport your work.
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