Week 7 learning
activity
Learning Activity # 1
Inez is a sole proprietor/owner of New Tech, a computer and
IT consulting business. Her clients are
small to medium sized businesses, colleges, and individual home users. Inez wants to expand her business, buy new
equipment, and hire an employee. She
needs to obtain additional capital to expand New Tech, but she does not want to
lose control of the business. Also, Inez has chosen not to take out any sort of
loan or use a credit card to obtain additional capital to expand.
As a sole proprietor, what is her best option to obtain
additional capital to expand and yet retain control of the business? Why?
Learning Activity # 2
Lana has started a computer accessory manufacturing and
sales business. She never planned to
have a business, but had created a certain accessory that her friends thought
was interesting, and she made these accessories for them. Suddenly people were paying her, and then she
started selling the accessories through a website. She has never formed any type of business
entity.
Lana has now decided she wants to sell these accessories in
Japan, and realizes she needs to formally adopt a specific business
organizational form for the business.
Discuss a recommendation for an appropriate business
organizational form for the business in the United States and for expanding the
business in Japan. Explain the rationale
for the choice of organizational form for Lana’s business.
