Case Studies (Report) 1 of 3, Week 4: 10% of Final Grade

Course Identification

Course title / Number INTERNATIONAL TRADE FINANCE / BICG9403

Teacher’s name: Gautam Jethra

Due: Friday, February 03, 2023

Term: Winter 2023

Student Identification

Student Name: _________Sandeep_______________________ Student ID: ____4499735_____

Instructions
 In your answers kindly use concepts, principles and strategies learnt in class.
 Kindly upload your submission on Canvas.
 Use professional business language.
Rubrics:

4 (Expert) 3 (Proficient) 2 (Learner) 1 (Novice)

Integration of The assignment The assignment The assignment The assignment

Information demonstrates that the demonstrates that thedemonstrates that does not
student has applied student for most partthe student to a demonstrate that
concepts learned in the applied concepts learned
certain extent the student has
course. in the course. understands and has fully understood
Concepts are integrated Some of the conclusions, applied concepts and applied
into student’s insights and however, are not learned in course. concepts learned in
provide concluding supported in the the course.
remarks that show assignment.
analysis and synthesis of
ideas.

Grammar, The assignment contains 1 to 2 errors in grammar, 3 to 4 errors in More than 4 errors
Spellings and no errors in grammar, punctuation, and/or grammar, in grammar,
APA punctuation, and/or spelling and/or all punctuation, and/or punctuation, and/or
referencing spelling and/or all sentences are complete, spelling and/or most spelling and/or
sentences are complete, well-constructed, and sentences are contains sentence
well-constructed, and most are stated in complete, well- fragments or run-
stated in business terms. business terms. 1 to 2 constructed, and but on sentences.
All references citied in errors in APA format not stated in More than 4 errors
APA format. referencing. business terms. 3 to in APA format
4 errors in APA referencing
format referencing

Page 1 of 3
Case Studies (Report): Open book

Question/s:
Answer: Minimum a paragraph or two for each question.

1. List all Legal Forms of Business Organization.

2. Compare any two Legal forms of Business Organization listing pros and cons of each.
3. If you were to choose the Legal Form of Business organization for your business, which one
would you choose? Why?

Answers:

1. Business organisation, an entity which is formed for the purpose of carrying a commercial
enterprise.
There are three main types of business organisations:
a. Sole proprietorship
b. Partnership
c. Corporation
d. Hybrid
Lets discuss all these types in detail:

a. Sole proprietorship: As its name suggest sole proprietorship that mean it is owned by
one person who handles all the assets as well as debits. This is a simple form of
business organisation and all the decisions, risks and investments are being done by
the sole owner.
b. Partnership: It is an association or relationship between two or more individuals,
corporations, trusts to carry on a trade or business. Each individual contributes
money, skills, labor, and property to the partnership.
c. Corporations: Corporation is a legal entity that can enter into contracts, own assets,
and incur debit, as well as sue and be sued all separately from its owners.
d. Hybrid: Hybrid is an organisation which is a mixture of mixed elements, value and
beliefs of various sectors of the society such as private and public ones.

2. Lets make comparison between sole proprietorship and partnership business organisations:

Pros

Sole Proprietorship
 In sole proprietorship not any statutory body handles the functions of sole proprietorship.
 In this owner is entitled for all the profits.
 If the owner of sole proprietorship dies or retires from the business, he/ she can wind up
the business.

Page 2 of 3
 Partnership
 In this organisation partnership acts as a governing body to handle all the tasks.
 In partnership each partner is liable for getting profits.
 In partnership if any of the partner from partnership quits fur further joint venture or dies,
the remaining partners all liable for all the things.

Cons:

Sole proprietorship

 Only the sole owner is liable for any kind of debt.

 The capacity to raise capital is limited.
 Retaining high calibre employees are difficult for sole owner.

Partnership

 Liability of the partners for the debts of the business is unlimited.

 Each and every partner is jointly liable for the partnership’s debt.
 Easy to retain calibre employees in partnership.

3.

As per the discussion above I would prefer to initiate my business with partnership business organisation,
as there are less risks to handle comparative to sole proprietorship, also each partner have to pay equal
amount of tax. Moreover, every responsibility is spelled out in each partner.

Page 3 of 3