Jeb and Josh will need to figure out which business entities would work best for their business agreement. Whereas, Jeb is financially funding the business, yet does not want to participate within the day-today operations, leaving Josh to lead the business with the day-to-day operations. A sole partnership advantages include, creation is easy, proprietor is in total control of management, proprietor keeps all profits. Disadvantages include Proprietor is personally liable for all losses, funding is limited to personal funds and loans (Dynamic Business Law, 2016). I do not feel a sole partnership would be possible in this case as there is more than one proprietor in this business.
Jeb and Josh have established a partnership in opening Arcadia Sports. The advantages to the partnership include easy creation, personal income from business profits, and business losses can be deducted from the taxes. The disadvantages to the partnership is the partners are reliable for all business depts (Dynamic Business Law,