Unit 4 Lesson 12: Business & Labor Portfolio

Question

Directions: You are going to create a FICTIONAL business plan. If you have an area that you are interested in then PLEASE choose a business related to that. My past students have chosen things like…
Dog Walking/Doggy Day care
Starting a Gym/Becoming a Personal Trainer
Hair Salon/Manicure Salon
Coaching for video games, schoolwork, sports, college prep
Anything else that will provide a good or a service to people in your area or online

Question #1 (2 points)
What is the business that you might be considering starting?

Question #2 (2 points)
What will you be providing a GOOD or a SERVICE? Explain why…

Question #3 (10 points)
Complete the following table to show what you will need to start your business. You must have at LEAST 6 items to get a passing grade for this section!

Resource
Fixed or Variable cost
1 time cost? Yes or No
Monthly Expense?
Yes or No
Required units?
Cost per unit?
Average cost= Required units X cost per unit)
Month One Expenses= start up cost
Month 2 expenses: no one time costs here
Example= Rent
Fixed
No
Yes
1
$1500
$1500
$1500
$1500
Example= Laptop
Fixed
Yes
No
2
$800
$1600
$1600
$0

Question #4 (2 points)
Which type of business type do you think works BEST for your functional business?

Choose ONE…

Sole proprietorship Partnership Corporation

Your choice is…

Question #5 (8 points)
In 6 to 8 sentences explain some of the pros and cons of the business type that you chose above. Type your answer in the space below

Answer 1

I believe that a sole proprietorship would work best for my functional business. One of the pros of a sole proprietorship is that it is easy to set up and requires minimal paperwork and formalities. As the sole owner, I would have complete control over all decision making and the direction of the business. Additionally, the profits earned from the business would go directly to me, without having to share with any partners. On the other hand, some of the cons of a sole proprietorship include the unlimited liability that comes with being the sole owner. This means that if the business were to face any legal issues or debts, my personal assets would be at risk. Additionally, it may be challenging to raise capital for the business as a sole proprietorship, as banks and investors may be hesitant to invest in a business with only one owner. Overall, I believe that the pros of a sole proprietorship outweigh the cons for my functional business.