Small business organizations are limited in terms of accessibility to labor and capital. This is the reason as to why Acme fireworks sole proprietor is unable to implement and execute the order due to limited fund to cater for the employees’ salaries in case the project kicks off. There are different forms of business ownership ranging from sole proprietorship, limited Liability company to unlimited Liability Company. They differ in terms of ownership. For the purposes of this essay, we will focus on the Limited Liability Company (LLC). The contract at hand employs agency law where Acme fireworks perform displays activities on behalf of the big companies enquiring from the firm. An agency contract occurs when the owner is separate from business and appoints trustees to manage the organization. Therefore, this essay deals with the formation of a limited company for Acme Fireworks. Specifically, much emphasis will be laid on the execution and formation of contracts (Twomey, 2009).
- Forms of business ownership
At this point, the essay will focus on different forms of organizations and their financial capabilities and opportunities in the market. Specifically, much focus will be on the limited liability company that is the ideal form of business to be adopted by Acme Fireworks.
- Unlimited Liability Company
The number of people required, documents to be submitted and other issues pertaining to this type are widely dealt with here. It also includes all the requirements and agreements henceforth.
- Limited liability Company.
This is also another form of organization setup that needs scrutiny to ascertain viability and effectiveness. It goes hand in hand with the determination of the minimum number of shareholders (Twomey, 2009).
- Advantages and disadvantages of Limited Liability Company
- Businesses contracts and the law
This section concentrates on business law governing the organization in conducting and carrying out their contractual business. Under this, we have the business agency laws, common law and the Uniform Commercial Code (UCC). In addition, the expectation of the principal and agency will be outlined in an extensive manner (Blair & Marcum, 2013).
- Agency laws, common law and the uniform commercial code(UCC)
The relationship between the principle and the agent will take the better part of this discussion. Determination of the type of contract between Acme Fireworks and other businesses is included here.
- The five essential elements of an enforceable contract in relation to Acme Fireworks
This section makes use of all the five element of contract together with the responsibilities. Furthermore, Potential personal liability to Acme as an agent of the Enquiry Company as well as principle takes the centre stage.
- Different employment types and relationships relevant to agency law
Here, the types of employment under agency law plus the organization liability makes a perfect match in defining the type and nature of contract. This is where partners establish their line of duty. Advantages and disadvantages of each type that is specific to Acme Fireworks (Natti, Kinnunen, Makikangas, & Mauno, 2009).
- Advantages and disadvantages of sole proprietorship
This section explores and analyzes the mode of business currently in place or being used by the firework entity. It incorporates the process of looking at the positive and negative sides of this form of business. In relation to finance muscle to implement and carrying out big orders, sole proprietorship fall short of finances hence discussed at length at this part.
- The cost of skilled labor, insurance, and the actual service of setting off the fireworks
All the costs associated with the insuring of business against risk are incorporated here. This is because of the facts that fireworks may cause damages or harm to properties and people hence a business needs to insure the organization in advance.
- The company decision and capability to perform to the letter
This is about the financial capability not leaving behind labor factor that is central to the development and success of a project. Some of the alternative causes of actions will be outlined.
- Challenges faced by the organization when entering into a contract.
At this junction, the essay demonstrates and dig deeper into the organization strength, weaknesses, opportunities and threat. The strategies to be used include the SWOT analysis (Spadaccini, 2013).
The organization has to make decisions regarding the way forward in consideration to its operation. Changes will be experienced in the structural components as well as liability issues. In addition, the forms of business and its ownership status has to change to align to the new status.
- Changing the company structure to Limited Liability Company
My views and opinion about the situation will be discussed at length in this section. Moreover, the hindrance and possible challenges are well defined to give good direction on the issue at hand.
- Restructuring the organization asset to align to new identity while creating compatibility
A close analysis of the decision is supported with reasonable argument for the initiative. Thus, all the reasons and formidable alternative will be reevaluated to determine the best alternative (Rogers, 2012).
This forms the end of the essay that arrives at a formidable conclusion.
Blair, E., & Marcum, T. (2013). Heed Our Advice: Exploring How Professionals Guide Small Business Owners in Start-Up Entity Choice. Journal Of Small Business Management, 53(1), 249-265. http://dx.doi.org/10.1111/jsbm.12073
Natti, J., Kinnunen, U., Makikangas, A., & Mauno, S. (2009). Type of employment relationship and mortality: prospective study among Finnish employees in 1984-2000. European Journal of Public Health, 23(2), 167-190. doi:10.1093/eurpub/ckp002
Rogers, S. (2012). Agency and Employment Law. In Essentials of Business Law (1st ed., pp. 160-190). New York: William Morrow.
Spadaccini, M. (2013). Business structures. Irvine, CA: Entrepreneur Press.
Twomey, D. P. (2009). Labor & employment law: Text & cases. Mason, OH: Thomson/West.