Question

Eve has always liked to write poetry. She was very good at it even when she was a young child. She always did very well in her English classes, especially in creative writing. Eve decided to use her creative writing skills in the marketplace. Eve started a business called Everlasting Card Creations. The cards contained a poem written by Eve to the specifications of the customer. Each card had a personalized poem and written for the requested occasion. Eve would sit down with the person who wanted a card produced and have them indicate what types of things they wanted to say to the person to whom the card would be sent. Eve would create a poem that fit the individual and the situation and then use calligraphy to put the poem in the card. The customers would choose the note cards that they wanted to use from a variety of stock, which generally had a sketch or drawing on the front of the card. Eve gained a lot of business. Each card took considerable time since she had to compose the poem and then write it on the card. Since she wanted to be paid for the time that she put into each card, her cards were much higher-priced than those that customers could purchase in the store. The customers really liked the type of service Eve provided, but the price seemed to be higher than many consumers in her area were willing to pay. Eve decided that she could offer a new line of computerized cards cutting out the calligraphy. The verse would be typed onto the card. Also, a computer graphics package could be used to develop the front of the cards and even to dress up the inside of the card. She would not have to purchase pre-printed cards. The lower cost of producing the card would mean cheaper prices that would attract more customers. The problem was that Eve was old fashioned and while she had calligraphy skills her computer skills were not great. Should thought she should bring someone else in as an employee or as a partner? Eve is really looking at two major decisions. One of them relates to whether she should computerize the production process. The other is whether she wants the form of business ownership to continue as a sole proprietorship or whether she wants the business to follow another form of ownership. Answer the following questions: Should Eve computerize? If so, why? If not, why not? To help Eve in answering her questions about keeping her sole proprietorship ownership status, discuss the various forms of ownership and then select the one you feel best fits Eve’s growth plans. Justify your selection by discussing the advantages and disadvantages of the sole proprietorship vs. the other business forms

Answer 1

I do belive that eve should computerize but not to replace her current process and product. she should computerize to expand her business and offer the option. it would bring in more money and save her a lot of time.. adding computerization to the business will add another layer to do business on.

I belive eve should form a business ownership .the other opton does not make sense . A partnership would require a partner ,a corporation would not make a sense for a small business such as eve and it also involved goverment regulations.

Advantages--1.In sole propritership can have full control over the business. so you dont have to communicate with someone else about your business like in partnership.

2. owner enjoy sole control over the business.

Disadvanatges-------1. unlimited liability for the debts , as there is no legal distinction between private and business assets..