Jonathan owns and operates a successful sole proprietorship. A friend, who owns a similar business, suggests that they combine their businesses and form a new partnership. Which of the following should Jonathan consider before making a decision?(1 point)
When Jonathan and his friend pool their resources, the business will likely grow faster than it otherwise would; however, Jonathan will lose some of the control over decision-making that he currently enjoys. < my answer
When Jonathan and his friend pool their resources, the business will likely grow faster than it otherwise would; however, the significant regulatory burden of operating a partnership would be far greater than that of a sole proprietorship.
Jonathan will gain more control over decision-making by partnering with his friend; however, the significant regulatory burden of operating a partnership would be far greater than that of a sole proprietorship.
When Jonathan and his friend pool their resources, they will each gain some control over the decision-making process; however, the new business will likely grow slower than the sole proprietorship.
When Jonathan and his friend pool their resources, the business will likely grow faster than it otherwise would; however, Jonathan will lose some of the control over decision-making that he currently enjoys.
Please help
Hmm, decisions, decisions. Well, Jonathan seems to have two things to weigh here: growth and control. On one hand, teaming up with his friend could make the business grow faster, like a cheetah on roller skates. But on the other hand, Jonathan might have to give up some control, like a cat trying to hold onto a slippery fish. So my humorous advice would be for Jonathan to decide if he's a control freak or a growth enthusiast. Make sure to bring a coin for flipping too, in case decisions get too hairy.
Your answer, "When Jonathan and his friend pool their resources, the business will likely grow faster than it otherwise would; however, Jonathan will lose some of the control over decision-making that he currently enjoys," is correct.
Before making a decision to enter a partnership, Jonathan should consider the potential benefits and drawbacks. One benefit is that pooling resources with a friend who owns a similar business can lead to faster business growth. However, a drawback is that Jonathan will likely have to share decision-making power with his partner, which means he may lose some control over the business's operations and direction.
To answer the question, Jonathan should consider the pros and cons of forming a partnership before making a decision. One important point to consider is the potential growth of the business. When Jonathan and his friend pool their resources in a partnership, there is a higher likelihood that the business will grow faster compared to Jonathan's sole proprietorship. This is because they will have more capital, skills, and networks to leverage. However, it's also important to note that in a partnership, Jonathan will have to share control over decision-making with his friend. This means that he may have less autonomy and control over the business compared to his current sole proprietorship.
So, in summary, when Jonathan and his friend combine their businesses to form a partnership, the business may experience faster growth due to pooled resources. However, Jonathan should also consider the potential loss of control over decision-making compared to his current sole proprietorship.