Question

Business 2: After apprenticing for another candy maker, I started my first candy business at age 18.

Unfortunately, my first attempt at starting a business (as well as my second) was a failure. After a rocky start,

my third try was more successful - I have just received a fortune from the sale of my caramel business. During

my world travels, I discovered new equipment that makes chocolate and decided to buy it. Today, only the

wealthy can afford chocolate. With this new technology, I think I can make a chocolate that everyone can

afford. In my mid-thirties, I know very little about making chocolate but I am willing to take the time to learn. I

want my life to center on inventing new candies, building this new business, and laying out a new community

that will be a wonderful place for the people I hire to live. I prefer to leave day-to-day operations of the

company–handling production, sales, marketing and distribution—to someone else

Answer 1

The question is incomplete since the requirements are missing, so I looked for similar questions and found that you should advice this client either to form a sole proprietorship, partnership or corporation.

Since this client wants to focus solely on inventing new candies, he would be better off by forming a corporation. That way, he and other stockholders can elect a board of directors which will appoint an appropriate upper management team to run the business.

The other two types of businesses, sole proprietorships and partnerships require that the owners actively participate in managing the business, and that is something that the client wants to avoid. This happens because sole proprietors and partners are personally liable for all the business obligations. On the other hand, corporations are managed by a professional team.