The Business Environment

Unit 1 Individual Project- The Business Environment

October 12, 2013

Introduction to Business

Abstract

The invention of the All-in-One Laundry Machine will make people’s lives much easier. First, before production can start it needs to be determined which type of business it will be. The three main types are Sole Proprietorship, Partnership and Corporation. There are advantages and disadvantages to each type that will be discussed in depth. After all the pros and cons are weighed the decision will be made to legally classify this business as a Corporation.

After researching what people would most benefit from in their daily lives, an idea came along for the invention of an All-in-One Laundry Machine. This invention consists of a single machine that washes and dries clothes wrinkle free. People would never have to switch clothes from one machine to another or run into the problem of forgetting about the clothes in the washer and having to rewash them again. If successful, this product will be able to make a substantial profit and make life easier for the average American household. One of the first things that needed to be determined is what type of business will make this product more profitable. There are three different types of businesses that could be used: Sole Proprietorship, Partnership and Corporation. All three of these types have advantages and disadvantages, which will be taken into consideration when deciding which type to use.

A sole proprietorship is a business that is owned and operated by one individual who is responsible for all financial and operational aspects of the business (Editorial Board, 2011). Advantages of this type of business are the ease of startup and taxation. Sole Proprietorships are the easiest business to start, it involves one person coming up with an idea and turning it into a business. This one person is 100% in charge and controls all decision making. The taxation is also very simple for this type...