Final answer:
Elvern Entrepreneur should consider sole proprietorship, partnership, and corporation as business forms for Pampered Puptown Puppers (PPP). A sole proprietorship offers full control and ease of start-up, but carries unlimited personal liability. A partnership allows for shared ownership and resources, but also involves shared liabilities. A corporation provides limited liability and opportunities for raising capital through stock sales.
Step-by-step explanation:
When considering a business form for Pampered Puptown Puppers (PPP), Elvern Entrepreneur should evaluate the options of sole proprietorship, partnership, and corporation. A sole proprietorship is a business owned and operated by one person. The advantages of a sole proprietorship include ease of start-up, full control over the business, and the ability to keep all profits. However, the disadvantages include unlimited personal liability for business debts and potential difficulty in raising capital.
A partnership involves two or more people sharing ownership and responsibility. The advantages of a partnership include shared decision-making and resources. However, the disadvantages include shared liabilities and potentially conflicting interests among partners.
A corporation is a separate legal entity owned by shareholders. The advantages of a corporation include limited liability for shareholders and the ability to attract capital through the sale of stock. However, corporations have more complex requirements, such as formal record-keeping and reporting.
Given Elvern Entrepreneur's desire to retain control and the need for capital, I would recommend considering a corporation for PPP. This would provide limited liability protection and the opportunity to raise funds through the sale of stock.