Rusty Nales worked in construction while attending college to earn a degree in r
ID: 2449885 • Letter: R
Question
Rusty Nales worked in construction while attending college to earn a degree in real estate and construction management. After obtaining his real estate license and working for a large company for several years, he decided to go open his own custom homes business. Rusty and his two friends, Woody and Hal talked about purchasing property, building custom homes and selling the homes to wealthy families. Rusty would be in charge of purchasing the initial properties and resale of the finished homes. Woody would be in charge of construction, such as hiring contractors and obtaining permits. Hal would oversee the business functions such as financing and other administrative tasks.
Discuss the advantages and disadvantages of at least 3 of the following types of business organizations as they specifically apply to the proposed business. Which type of business organization should the three friends select? Why?
Sole Proprietorship
General Partnership
Limited Partnership
Limited Liability Partnership
Joint Venture
Limited Liability Company
Corporation
Explanation / Answer
Advantages of Sole Proprietorship
Disadvantages of Sole Proprietorship
Advantages of General Partnership
· Efficient management with more than one owner.
Disadvantages of General Partnership
Advantages of Limited Liability Company
Disadvantages of Limited Liability Company
After seeing advantages and disadvantages of some organization it can be said that Rusty and his two friends, Woody and Hal should opt for partnership because three person can easily start partnership and this form of organization not required huge amount of capital. Apart from this partnership form of business does not requires huge number of employees thus partnership will be a good option for Rusty and his two friends, Woody and Hal.
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