Wanda owns a Salty Pawz store that sells dog products. She is concerned that if she grows the business, she may take on more financial and personal responsibility than she is comfortable with. Your Task Complete this graphic organizer for your

Here's a graphic organizer summarizing Wanda's business ownership options along with their advantages and disadvantages, a recommendation for her, and elaboration on that advice. --- **Journey 6 Graphic Organizer: Wanda's Business-Ownership Options** **1. Forms of Business Ownership:** - Sole Proprietorship - Partnership - Limited Liability Company (LLC) - Corporation --- **2. Advantages & Disadvantages:** | Form of Ownership | Advantages | Disadvantages | |------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------| | **Sole Proprietorship** | - Complete control | - Unlimited personal liability | | | - Simple to set up and operate | - Harder to raise capital | | | - All profits go to the owner | - Business ends if the owner dies | |------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------| | **Partnership** | - Shared responsibilities and skills | - Shared profits | | | - Easier to raise capital together | - Joint liability for debts | | | - More diverse ideas and input | - Potential for conflicts between partners | |------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------| | **Limited Liability Company (LLC)** | - Limited liability protection for owners (members) | - More complex to set up compared to sole proprietorship | | | - Flexible taxation options | - May require more record-keeping and compliance | | | - Less formal than a corporation | - Limited life in some states | |------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------| | **Corporation** | - Limited liability for owners | - More expensive to set up and maintain | | | - Easier to raise capital through the sale of stock | - Subject to double taxation (corporate and personal) | | | - Perpetual existence | - More regulations and formalities to comply with | --- **3. Recommended Form of Ownership:** **Limited Liability Company (LLC)** --- **4. Elaboration on the Advice Provided:** I recommend Wanda consider forming a Limited Liability Company (LLC) as her business ownership option. An LLC provides her the benefit of limiting her personal liability, meaning her personal assets would typically be protected in case of business debts or lawsuits. This is particularly appealing given her concerns about financial and personal responsibility. Additionally, an LLC offers flexible taxation options, which could potentially lead to tax savings. Wanda would also have the benefit of not being subjected to the same level of regulatory burden as a corporation, making it easier for her to manage the business while still retaining operational control. Furthermore, as she grows her business, an LLC can make it easier to attract partners or investors, while still keeping the business ownership structure relatively uncomplicated. This balance of protection, flexibility, and simplicity makes the LLC an ideal recommendation for Wanda as she navigates her concerns regarding growth and responsibility in her business. --- This graphic organizer can be presented as part of Wanda's business planning process, helping her to make an informed decision about how to structure her growing business.