Activity (Forms of Business Org)
Activity (Forms of Business Org)
Mr. Bailey's Fragrance Shop Bailey has been a sole proprietor of his fragrance shop
for five years now. He started his business with an investment of ₱50,000.00, which
came from his savings. Mr. Bailey is planning to expand his business, and it will cost
him ₱200,000.00, but he only had ₱80,000.00 cash on hand, which came from his
own money and a portion of his shop's income. He is planning to open his business
for partnership or form a corporation and offer shares to investors.
1. What would be the advantages and disadvantages if Mr. Bailey chose to form a
partnership business?
2. What would be the advantages and disadvantages if Mr. Bailey chose to form a
corporation?
3. Given the advantages and disadvantages of each form of business organization, what
form of business organization should Mr. Bailey create for his fragrance shop to
expand its operations? Justify your answer.