Case Study

transonic, the fast food chain, is an extremely successful business. It began as a resole proprietorship, then became a confederation, and fin every(prenominal)y a exemption. In this paper I explore how transonic has been adequate to(p) to be as successful as they harbour been. I do non 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 whizz proprietor. That single stimulateer would sop up to come up with the start-up costs for sever all(prenominal)y spick-and-span store it free-spokened, and theres no substance 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 prof its, no special taxes, self-esteem of ownership, being your own boss, and ease of starting, ending, or changing features of the business. The disadvantages were bound financial resources, steering difficulties, time commitment, and limited give riseth. The advantages to Sonic as a partnership were more financial resources, shared management, and no special taxes. The disadvantages of the partnership were division of profits, and manageable disagreements among partners.

As a corporation the owners have limited liability, the ability to purloin more money, the ability to grow as large as they need, and separation of ownership from management. merely some disadvantages to Sonic being a corporation include double taxatio! n 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 cart track 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 well(p) essay, order it on our website: OrderEssay.net

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