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Bussiness Ananlysis

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Bussiness Ananlysis
Jose Rivera should select to create a corporation for his Toy Builder business. There are many reasons why it would be advantageous for Jose to create a corporation for Toy Builder as opposed to a sole proprietorship or partnership. Jose has a long desired to get into the toy business but it would be wise to separate this desire from his already acquired wealth which he has worked for so many years to accumulate. By Incorporating Toy Builder he creates a liability shield or separation between his personal assets and the newly acquired Toy Builder Company. A Corporation is a separate legal entity that is recognized by the law as being an actual legal person with many of the same rights and responsibilities that a natural person possesses. It is because of this that Jose can create the corporation Toy Builder and be financially safe with his entire personal wealth and assets. What this means is that if Toy Builder is ever sued Jose has a protection between him and the Corporation, which makes sure his assets and personal wealth aren’t on the line when and if Toy Builder is ever held liable. Jose is also separating himself and personal wealth from the company debt that Toy Builder may acquire as it grows as a company. This same protection for Jose is not possible if he were to make Toy Builder a sole proprietorship or partnership because if the company was ever held liable for anything including debt it would fall on Jose to pay all debt and damages that his business is held accountable for.
Incorporating Toy Builder will also open itself up to raising money whenever it is needed by acquiring potential investors through shares of stock. The Toy Builder Corporation will technically be owned by shareholder and will be controlled by board of directors. This can help Jose if he ever needs advice or help on running Toy Builder. He can turn to the board of directors for advice and also raise money if it is needed through shares. This is also not possible or very

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