You are the sole proprietor of a video rental shop. Sales have been climbing and customers are beginning to complain that they have a hard time finding copies of the really popular titles. You would like to address these complaints by buying more videos, but unfortunately, you don't have any extra cash lying around to sink into the business. Your cousin Ned offers to put $30,000 into the business, if you make him a partner. If you do, you will no longer have a sole proprietorship, but will have to change your firm to a partnership or a corporation. What should you consider when deciding how to reorganize your firm?

Question

Quizplus · Accepted Answer

The Answer of You are the sole proprietor of a video rental shop. Sales have been climbing and customers are beginning to complain that they have a hard time finding copies of the really popular titles. You would like to address these complaints by buying more videos, but unfortunately, you don't have any extra cash lying around to sink into the business. Your cousin Ned offers to put $30,000 into the business, if you make him a partner. If you do, you will no longer have a sole proprietorship, but will have to change your firm to a partnership or a corporation. What should you consider when deciding how to reorganize your firm?

You Are the Sole Proprietor of a Video Rental Shop