Sonic Boom

1) Do you think that Sonic would have grown as large as it did today if it had remained a sole proprietorship? Why or why not?

No, I would not have thought that Sonic would be as successful as it is today. The reason is if sonic would have stayed as a sole proprietorship did not have the advantage and it would not have grown at all. It may not been able to stay open as a sole proprietorship because of the disadvantage that they face with other fast food business. Not only that, it would be the funds, which they may not have been enough off in order to keep it operating because of the cost that is involved in order to operate a business was more that it was receiving from not getting enough customers visitors to eat there.

2) What were the advantages and disadvantages to Sonic of each form of business ownership?

Sole proprietorship:

The meaning for sole proprietorship is a business that is owned and usually managed by one person. (Nickels, McHugh, McHugh &, (2013) p.116)

The advantage for Sonic as a sole proprietorship would be that they made all the profits for their self.

The disadvantage for Sonic as a sole proprietorship will be that they have no responsibility, but their own and may not grow that fast or not grow at all. They also are limited to the amount of funds they can borrow if any is needed as well. (Nickels, McHugh, McHugh &, (2013) p.116-117)

Partnerships:

The meaning for Partnership is a legal form of business with two or more owners. (Nickels, McHugh, McHugh &, (2013) p.116)

The advantage for Sonic as a Partnership will be that with two of the owners there would be more financial resources to help make Sonic grow to a bigger business and they will be able to share with making decision and sharing any business problems that comes up as well as splitting the profits between the two owners.

The disadvantage for Sonic as a partnerships will be the liability (example: responsible for all debts) any potential conflict and is limited in length of life that is dependent on health commitment and competence of one or more persons and any financial debts that is still unpaid. (Nickels, McHugh, McHugh &, (2013) p.119-122)

Corporations:

The meaning for Corporation is a legal entity with the authority to act and have liability to act and have liability apart from its owner. (Nickels, McHugh, McHugh &, (2013) p.116)

The advantage would be that a Corporation would be easier to raise money to expand further and it also makes more flexibility to sell stock, separation of ownership from management, specialization of management and may it easier to raise capital longevity of corporation.

The disadvantages would be that a Corporation can make it hard to obtain and can be slower with decision making process and the company lack of control can cause an initial cost to the Corporation to arrive. (Nickels, McHugh, McHugh &, (2013) p.123-132)

Franchisor

The meaning for a franchisor is a company that develops a product concept and sells other the rights to make and sell the products.