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Scenrio: Gloria Smithson and her husband Joe have created a revolutionary widget that they believe will revolutionize the industry. Joe Smithson is an engineer, and he and Gloria worked steadily for approximately 1 year to develop the design. They have applied for a patent, which is currently pending. They have created prototypes and are ready to begin looking for manufacturers and accounts. However, they have not yet created a business and are not sure which type of entity will best serve their needs. They want to create a business that can grow steadily and perhaps expand globally. Gloria has researched accounting firms and believes she has found one that will be able to answer all of her questions. She wants to develop a long-term relationship with an accountant who regularly works with start-up businesses and who has global connections.

 

 

Gloria is very concerned about insulating herself and her family from personal liability. You are a business planner and accountant. Gloria has come to you to get some advice on which business entity best suits her needs and objectives. For this assignment, you will prepare a three- to four-page memo to Gloria Smithson to advise her on which business entity you recommend she choose based on her situation and your research.

Prepare a memo that addresses the elements below.

  1. Identify three business formations that you believe Gloria could consider as appropriate for her business.
  2. Define each chosen business formation.
  3. Explain at least three pros and three cons for each potential business formation.
  4. Using the course material and the DeVry Library, research which business formation would best insulate Gloria and her family from potential liability.
  5. Your memo will be graded using the Week 3 You Decide Rubric.

Below are some more tips to help you be successful in this assignment.

  1. The heading of your memo should be: Memo to Gloria Smithson.
  2. Your memo should be three to four pages long, exclusive of the cover page and references page. It should comply with APA 6th edition formatting.
    1. Cover page
    2. References page
    3. 12-point, Times New Roman font
    4. No website references
    5. Include at least two scholarly references in addition to your textbook
    6. Include in-text references to sources
  3. This You Decide will be graded using the You Decide Rubric available in Doc Sharing
SOURCE: WWW.ROYALRESEARCHERS.COM
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