forms of business ownerships business structure analysis directions: read the six scenarios below and…

forms of business ownerships business structure analysis directions: read the six scenarios below and indicate if the example is a sole proprietorship, partnership, or corporation. be sure to use two pieces of evidence to justify your answer. scenario 1: a group of investors comes together to establish a company focused on manufacturing and selling toys. they hire a board of directors to make major business decisions and share profits among themselves based on the number of shares they own in the company. which type of business? justification: 1. 2. scenario 2: maria owns and operates a small grocery store in her neighborhood. she is responsible for all aspects of the business, from ordering inventory to managing finances. maria also retains all the profits generated by the store. although she may occasionally hire employees, the store is entirely her own enterprise. which type of business? justification: 1. 2. scenario 3: emily and sarah, two close friends, decide to start a lemonade stand together. they share the costs of buying lemons, sugar, and a stand. they both actively participate in making and selling lemonade. at the end of the day, they split the profits theyve earned equally between themselves. which type of business? justification: 1. 2. scenario 4: mr. johnson, a skilled baker, has been operating a bakery in his neighborhood for many years. he is the owner of the bakery and makes all the decisions regarding the business. he also takes all the profits generated by the bakery. while his daughter occasionally helps out at the bakery on weekends, mr. johnson maintains full control and ownership of the business.

forms of business ownerships business structure analysis directions: read the six scenarios below and indicate if the example is a sole proprietorship, partnership, or corporation. be sure to use two pieces of evidence to justify your answer. scenario 1: a group of investors comes together to establish a company focused on manufacturing and selling toys. they hire a board of directors to make major business decisions and share profits among themselves based on the number of shares they own in the company. which type of business? justification: 1. 2. scenario 2: maria owns and operates a small grocery store in her neighborhood. she is responsible for all aspects of the business, from ordering inventory to managing finances. maria also retains all the profits generated by the store. although she may occasionally hire employees, the store is entirely her own enterprise. which type of business? justification: 1. 2. scenario 3: emily and sarah, two close friends, decide to start a lemonade stand together. they share the costs of buying lemons, sugar, and a stand. they both actively participate in making and selling lemonade. at the end of the day, they split the profits theyve earned equally between themselves. which type of business? justification: 1. 2. scenario 4: mr. johnson, a skilled baker, has been operating a bakery in his neighborhood for many years. he is the owner of the bakery and makes all the decisions regarding the business. he also takes all the profits generated by the bakery. while his daughter occasionally helps out at the bakery on weekends, mr. johnson maintains full control and ownership of the business.

Answer

Brief Explanations:

Scenario 1:

A corporation is a legal entity separate from its owners. Here, a group of investors forms a company, hires a board of directors for major decisions, and shares profits based on shares, which are key features of a corporation.

Scenario 2:

A sole proprietorship is owned and operated by one person who has full control and retains all profits. Maria owns and runs the grocery - store alone, making it a sole proprietorship.

Scenario 3:

A partnership is a business owned by two or more people who share costs, work, and profits. Emily and Sarah share costs, participate in operations, and split profits, indicating a partnership.

Scenario 4:

Mr. Johnson is the sole owner of the bakery, makes all business decisions, and takes all profits, which are characteristics of a sole proprietorship.

Answer:

Scenario 1: Corporation Justification: 1. Group of investors form a company. 2. Profits shared based on number of shares and board of directors hired for major decisions. Scenario 2: Sole Proprietorship Justification: 1. Maria is the sole owner. 2. She retains all profits and is responsible for all aspects of the business. Scenario 3: Partnership Justification: 1. Two people (Emily and Sarah) share costs. 2. They split profits equally and both participate in operations. Scenario 4: Sole Proprietorship Justification: 1. Mr. Johnson is the sole owner. 2. He makes all business decisions and takes all profits.