Case Study

transonic, the fast food chain, is an extremely successful business. It began as a doctor proprietorship, then became a confederation, and fin each(prenominal)y a exemption. In this paper I explore how sonic has been competent to be as successful as they harbour been. I do not guess Sonic would be as besides large as it is today had it remained a sole proprietorship. I think expanding as far as Sonic has would be too much work for a private proprietor. That single stimulateer would sop up to come up with the start-up costs for all(prenominal) spick-and-span store it leaveed, and theres no counsel cardinal person could have opened hundreds of new stores in their lifetime. Franchising was for sure the best option for Sonic because they can open hundreds and tear down thousands of new stores with no start-up costs or liability. The advantages to Troy Smith, the genuine owner of Sonic, as a sole proprietor were property of company profits, no special taxes, vainglory of ownership, organism your own boss, and ease of starting, ending, or changing features of the business. The disadvantages were moderate financial resources, steering difficulties, time commitment, and limited give riseth. The advantages to Sonic as a partnership were more financial resources, overlap management, and no special taxes. The disadvantages of the partnership were division of profits, and workable disagreements among partners.

As a corporation the owners have limited liability, the ability to awake more money, the ability to grow as large as they need, and separation of ownership from management. merely some disadvantages to Sonic being a corpora! tion include double taxation and possible conflicts with stockholders and board of directors. Now Sonic is a franchise as well. The advantages for them are the ability to have many Sonic restaurants all over the country that they earn royalties from but do not have to focus on the day to day outpouring of the business as the franchise owners take care of all of that. They have little liability and are still able to set the ground...If you want to arse about a lavish essay, order it on our website: BestEssayCheap.com

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