Instructions Include Title Page That Meets APA Requirements ✓ Solved

Instructions Include Title Page That Meets Apa Requirements And Ident

Include title page that meets APA requirements and identifies the student submitting the Business Forms Worksheet.

The purpose of this assignment is to select the best organizational form and to discuss ethical concerns with the business forms scenario. To support each response to each question below, you must conduct scholarly research and cite to the source or sources.

Scenario: Adam and Laura wish to open a pet grooming shop called Dazzling Doggies Day Spa. Laura's mother, Beth, would like to contribute to the startup costs in exchange for a share of profits, but she does not want to participate in the daily operations of the business. She also does not want to have any personal liability in the business.

Respond to the following questions as directed:

Question 1

Which business organizational form would be best given the above circumstances and why? Cite to your supporting reference or references within your response and on the reference page.

Question 2

Unbeknownst to Laura and Beth, Adam begins to use Dazzling Doggies Day Spa's checking account to pay all his personal bills. Are his actions ethical? Why or why not? Cite to your supporting reference or references within your response and on the reference page.

Question 3

Which ethical theory best suits Adam’s actions, consequentialism or formalism or both? Explain. Cite to your supporting reference or references within your response and on the reference page.

References (Not necessary to use separate page for references as required by APA rules.) Business Forms Worksheet-Prepared by: Associate Faculty Dr. Spencer Sept. 2017-rev. 10.23.2017

Sample Paper For Above instruction

Introduction

Choosing the appropriate business organizational form is crucial for entrepreneurs, especially when considering liability, taxation, and managerial control. In the scenario of Adam, Laura, and Beth planning to establish Dazzling Doggies Day Spa, selecting the best organizational structure that aligns with their circumstances and goals is essential. Additionally, ethical considerations surrounding Adam’s misuse of business funds require careful analysis through established ethical theories.

Question 1: Optimal Business Organizational Form

Given the specifics of the scenario, a Limited Liability Company (LLC) appears to be the most suitable organizational form for Dazzling Doggies Day Spa. An LLC combines the advantages of pass-through taxation and limited liability protections, aligning with Beth’s preference to avoid personal liability while contributing capital (Carter & Van Auken, 2018). As Beth does not wish to participate in daily operations but wants to ensure her investment is protected against personal liability, an LLC structure effectively separates her personal assets from business liabilities. Furthermore, LLCs offer flexibility in management and profit distribution, catering to the partnership-style contribution envisioned by Beth.

Alternatively, a Partnership might be considered; however, this form does not offer liability protections, which conflicts with Beth’s desire to avoid personal liability. A Corporation provides limited liability but involves more complex regulatory requirements and double taxation, which may not align with the small-scale, startup nature of the pet grooming business (Miller & Jentz, 2020). Therefore, an LLC balances liability protection, tax advantages, and management flexibility, making it the recommended choice under these circumstances.

Question 2: Ethical Implications of Adam’s Actions

Adam’s decision to use the business checking account to pay his personal bills is ethically questionable. This action constitutes misappropriation of business funds, violating principles of honesty and fiduciary duty. As a business owner or partner, Adam has a fiduciary responsibility to act in the best interests of the business and its stakeholders. Using business funds for personal expenses without proper authorization breaches this obligation and constitutes misconduct (Brenkert & Bevan, 2016). Such behavior undermines trust among partners and could jeopardize the business's financial stability.

According to Kantian ethics, such actions are inherently wrong because they treat the business as a means to personal benefit rather than respecting the moral duty to act honestly (Kant, 1785). Therefore, Adam’s actions are unethical because they violate moral principles of integrity and duty. From a consequentialist perspective, his actions could result in harm to the business, including financial difficulties and damaged reputations, further emphasizing their unethical nature.

Question 3: Ethical Theory Analysis

Adam’s actions can be examined through both consequentialism and formalism, but they are more aligned with consequentialism. Consequentialism judges the morality of actions based on their outcomes. In this case, Adam’s misuse of the business account could lead to negative consequences, such as financial instability, loss of trust, and potential legal repercussions, which makes his behavior unethical under consequentialist principles (Rachels & Rachels, 2019).

Conversely, formalism, particularly Kantian ethics, emphasizes adherence to moral duties and principles regardless of outcomes. As Adam’s conduct violates the duty of honesty and fiduciary responsibility, it would be deemed unethical under formalist ethics as well. However, the primary ethical breach here pertains to the consequences and the breach of moral duties, suggesting that consequentialism more comprehensively captures the ethical shortcomings of Adam’s actions.

Conclusion

In summary, selecting the appropriate business structure for Dazzling Doggies Day Spa involves understanding the legal and financial implications aligned with the owners’ goals. An LLC is the optimal choice due to liability protection and tax benefits. Ethically, Adam’s misuse of business funds constitutes misconduct that damages trust and could harm the business. Analyzing his actions through ethical theories indicates that consequentialism provides a more fitting framework to evaluate the impact of his conduct, emphasizing the importance of ethical decision-making in business.

References

• Brenkert, G. G., & Bevan, R. (2016). Ethical theory and business. Oxford University Press.
• Carter, T., & Van Auken, P. (2018). Business law: Text and cases. McGraw-Hill Education.
• Kant, I. (1785). Groundwork of the Metaphysics of Morals.
• Miller, R. L., & Jentz, G. A. (2020). Business law today: The essentials. Cengage Learning.
• Rachels, J., & Rachels, S. (2019). The elements of moral philosophy. McGraw-Hill Education.