Question

If you were organizing yourself as a business with your friend to sell ice cream. What type of business organization would you select and why? Must provide at least two reasons why you chose this particular business type. At least two reasons must support your selection in order to earn full credit on this question.

Answer 1

There are different types of business organisations like sole proprietorship , partnership , LLP ie limited liability partnership , a company . Company can be private limited or public limited

So for setting icecream business with a friend , I would select LLP

Since we are 2 people , I feel LLP would be the best solution

Reason: 1 As the name itself suggests it's it's ed liability , so incase the organisation bears losses, there is a limit to it and no personal assets can be charged.

2. LLP ie deemed to be a legal person , it has a status and can be presented in the court of law for justice

Since all the business in the start bear losses , no partner would be charged from their personal assets

Also incase of any dispute regarding the Product , the company can present itself quiet nicely