Can someone help me in their own words.... Prompt: Read the case study below. In

Question

Can someone help me in their own words....

Prompt: Read the case study below. In your discussion, address the critical element that follows.

Case Study Three: Jeb and Josh are lifelong friends. Jeb is a wealthy wind-power tycoon, and Josh is an active outdoor enthusiast. They have decided to open a sporting goods store, Arcadia Sports, using Jeb’s considerable financial resources and Josh’s extensive knowledge of all things outdoors. In addition to selling sporting goods, the store will provide whitewater rafting, rock-climbing, and camping excursions. Jeb will not participate in the day-to-day operations of the store or in the excursions. Both Jeb and Josh have agreed to split the profits down the middle. On the first whitewater rafting excursion, a customer named Jane falls off the raft and suffers a severe concussion and permanent damage to her spine. Meanwhile, Jeb’s wind farms are shut down by government regulators, and he goes bankrupt, leaving extensive personal creditors looking to collect.

Specifically, the following critical element must be addressed:

Identify the main types of business entities and discuss the advantages and disadvantages of each.

-Correctly identifies the main types of business entities and discusses the advantages and disadvantages of each.

- Draws informed conclusions that are justified with evidence.

-Meets “Proficient” criteria, clarifies claims, and uses specific examples to substantiate and clarify claims where appropriate.

Explanation / Answer

Following the are the types of Business entities –

Sole Proprietorship –

Advantages –

Disadvantages –

Partnership –

Advantages –

Disadvantages –

Limited Liability Company (LLC)

Advantages –

Disadvantages –

Corporation –

Advantages –

Disadvantages –

In the present case, Jeb and Josh were doing business under mere understanding and acting like a partner. They had decided to share the profits of the business and is liable for the action of another partner. They come under partnership act and accordingly if any profits they would have earned, they could divide among themselves. They both contributed something to form this partnership like Jeb’s financial resources and Josh’s talent and skills. Therefore they both liable personally towards the creditors they encountered while their partnership.

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