I’m stuck on a Business Law question and need an explanation.
You decided to take a week of vacation time from Colossal to devote yourself entirely to developing your new business venture. You begin by going into your home office to work on the task at hand—the preparation of a narrated PowerPoint to practice your presentation to potential investors. The presentation will address all of the key issues related to the legal form and organizational structure of your business. Specifically, you will include the following in your narrated PowerPoint:
- A name for your business, a brief mission statement reflecting the primary goals of the business, and an explanation for why you chose this name and mission statement. You will explain how this mission statement is drafted so that it is clear, concise, and meaningful to your business’s stakeholders.
- An examination of the three most appropriate legal forms of business for your venture. Include a detailed examination of the advantages and disadvantages of these three forms and an evaluation of these six factors:
- creation and maintenance
- ownership and control
- personal liability
- compensation and division of profits
- A choice of the best legal form of business for your new company
from the three you considered and a full explanation of your choice.
- A detailed diagram of your organization chart and a rationale explaining structural decisions reflected in your organization chart, including:
- the titles of the different individuals and why you chose those titles
- the tasks the different individuals and groups will have for contributing to the aims of the company
- the reporting structure (who will report to whom and why)
- a choice regarding outsourcing the human resources function, including a detailed analysis of the pros and cons of outsourcing the human resources function
- all other relevant factors (for example, will your business structure be functional, centralized, decentralized, etc.), including how your chosen structure will contribute to your long-term aims of going national and international, or how it will need to be modified to achieve these aims
After reviewing the above outline of your presentation, you recall the recent conference call with your potential business partners, Roza and Gary. You realize that you will need this information to make the best legal and organizational decisions for your business. You’re asked by one of your collaborators to examine some resources on creating and managing a new business and on drafting a mission statement.
In order to complete this task, you realize that you must do some additional research to address the legal and strategic implications of your decisions if your business is to get off the ground.
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