Starting and Naming a Business

4. Advise Shania on which of the interested persons she should include in her business, why, and in what role(s). If she chooses not to take in a particular party, what reasoning should she give each person, if any? Your analysis must include biblical perspectives, such as biblical considerations of marriage and of business relationships with non-believers.Reply Prompt:In preparing your replies, consider only the employee issues in Question 4. Reply to the threads of 2 classmates who reached a different conclusion than you did. Identify the points of difference in your analyses and explain how your application of the relevant law to the facts of this situation led you to a different conclusion.Then, assume that Shania opened her coffeehouse and became so successful that she has 20 employees and needs to promote 1 of them to be the night shift supervisor. The employee base is quite diverse; in fact, Shania believes she should promote a racial or ethnic minority employee to demonstrate how inclusive her business has become. Explore the legal, ethical, and biblical issues if Shania makes her promotion decision entirely on that basis. What are her options?Each reply must be supported by 3 scholarly sources, other than the textbook/course materials. Each reply must be properly cited in current APA format.* Each Reply must have 2 Biblical quotes in correct APA formatting through the text. * Please direct the reply towards each student for example ” I disagree with your argument…” “I found it interesting that you say…” etc.


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Starting and Naming a Business Case
Torrie Ruiz
Liberty Univserity
Business form
Setting up a business requires critical focus on the key objectives and the intentions of
setting up the business so that the business is modeled based on these objectives. Identification of
the business form, which the business will follow, also is an important aspect, which defines the
operational direction that the business will take. Thus, it is important to evaluate the existing
business forms and select a business form that will have a higher rate of returns as well as
reduced liability management, which is an important aspect in business development. In this
case, Shania has already identified the industry in which she expects to set up her business. The
best business form that Shania can adopt in this case is a limited liability company business
The key reason why she should adopt this form of business is that a limited liability
company is a very flexible business form. This means it will be much easier to manage the
operations of the company due to the ability to incorporate a more flexible business structure that
will ensure that everyone who wishes to be part of the business plays a specific role within the
company management to ensure high-level focus and engagement. Limited liability will shield
her from any debts that are accrued while business is in operation meaning that her assets would
not be considered as collateral in case the business is unable to pay its debts since the business is
a separate entity. Businesses involve taking risks that means that they are operated on the
probability of chance hence there is need to ensure that individual assets are protected to avoid
significant personal stress in case the business does not turn out as expected (Loewenstein,
Starting a limited liability company does not require significant legal and compliance
processes as compared to other forms of business. A limited liability company can begin its
operations within a certificate of registration. Another important thing is that the owners of a
limited liability company are usually taxed as sole proprietors. This will solve any issues that
might arise regarding sharing of the company profits among the interested members because she
is a mature Christian and honesty is a key virtue which is expected to guide her decisions (Artz,
Gramlich, & Porter, 2012).
Appropriate business type
I would advise Shania to open an independent coffeehouse. Freedom is an important
aspect of a business environment whereas the owner of the business, she will be responsible for
the decisions she makes, and the business will be much more flexible. Being independent will
mean that she will have all the benefits of the company, make her business decisions based on
her understanding of the market environment, and pursue ideas that she thinks will be successful
through market research. Even though franchising would also be a good idea, it is not the best
choice because by choosing a franchise, it means that her business will be subject to the
decisions that are made by the franchisor. She will not have the chance to implement strategies
and policies that she thinks will help expand business operations since she needs to work based
on the guidelines that have been put in place by the franchisor. She will have to enjoy all the
benefits earned from her business with the franchisor. When the franchisor goes out of business,
she will have no option but to close her business. Therefore, the best option is to open an
independent coffeehouse where she will have to implement her strategies to ensure that the
business is successful (Alon, 2014).
The business name
I would advise Shania to use a different business name, which might be more attractive,
and business oriented. The Gathering place does not reflect any customer-oriented aspect, which
is more of a social focus than business. A business name such as Coffee Place would be more
appropriate and attractive to the customers since it is more specific compared to the gathering
place, which is diverse. This would help customers to easily identify themselves with the
business without having a specific understanding of the business itself. It is important to consider
and develop a specific business brand that customers can easily associate and relate to with much
ease. (Alleyne, Weekes-Marshall, & Broome, 2014).
Members to include
Determining who to include in the business will be based on what added advantage they
bring to the business. The inclusion should not be a problem, but a blessing and thus all other
factors need to be effectively evaluated to have a better understanding of the inclusion decision
that she will make. Therefore, in this case, she would consider including Marvin and Carlos. The
inclusion of Marvin, in this case, will boost the business financial position because he is
interested in funding the business but not involve actively in its operations.
Carlos is optimistic about the company being successful, and thus this positive attitude is
key in business development even though he does not have a Christian background. The Bible
teaches that as believers we should strive to be accommodative to all and always aim to turn
everyone to the ways of the lord since it is the only way that they can become believers
themselves (Colossians 4:5-6). Walking with wisdom is an asset of faith and strong beliefs that
form the foundation of any Christian. Luke 5:32 assert that Jesus Christ did not come for the
righteous but the sinners to repent their sins. Therefore, including Carlos as part of the business
will offer a chance for Shania who is a mature Christian to change his thoughts and lead him to
the path of righteous.
Shania’s sister Kelsey should not form part of the business because her husband is against
the move and wishes her to remain to stay at home mother to their two children and thus
including her as part of the business will create issues for the business that are not warranted.
From the biblical perspective, wives are advised to obey and respect their husbands to strengthen
their faith and build their home (1 Peter 3: 1). This means that if Shania includes Kelsey into the
business, she will be committing a scene by helping to disobey her husband that is against the
bible teachings.
Alleyne, P., Weekes-Marshall, D., & Broome, T. (2014). Accountants’ perceptions of corporate
governance in public limited liability companies in an emerging economy. Meditari
Accountancy Research, 22(2), 186–210.
Alon, I. (2014). Social franchising. Social Franchising.
Artz, N., Gramlich, J., & Porter, T. (2012). Low-profit Limited Liability Companies (L3Cs).
Journal of Public Affairs, 12(3), 230–238.
Loewenstein, M. J. (2012). Limited Liability Companies. The SAGE Handbook of Corporate
Governance, (Llc), 81–95.
Coffee Shop Case Study
The scope of this paper is to evaluate and respond to the business aspirations of a Colorado resident
named Shania. Shania plans to start a Christian coffee shop that she would like to name “The Gathering
Place,” but is also considering whether she may franchise within a chain of coffee shops Finally, she has
two personal friends who are each interested in to going in to business with her. This paper will evaluate
and respond to the concerns of how she should incorporate, whether she should become a franchise,
whether her proposed name is available to her in the state of Colorado, and which of her relationships
may be a good choice to go in to business with.
One of the first major questions that Shania will have to answer is which of the business forms
she is considering will best suit her business needs. Shania has considered forming her business as a sole
proprietorship, a partnership, some form of corporation, an LLC, or a joint venture. Considering the
potential initial scale of her business, she has most likely considered a sole proprietorship, partnership,
or an LLC to be her top options. From a technical perspective, a partnership is likely among the least
attractive of the 3 options listed. According to Angela du Plessis, “Many professionals, including
accountants, doctors, lawyers and engineers, form partnerships as a way of organizing their professional
services” (du Plessis, 2017). Partnerships are much more geared toward professionals offering services
than toward business owners joining to sell a product. The next attractive option, for simplicity’s sake,
would be to form a sole proprietorship. The major issue with forming a sole proprietorship, especially in
the food industry, is that all liability for business interactions would fall on Shania. John Geekie writes,
“Sole proprietorship is the most simplistic entity from the legal perspective. It is easy to incorporate, has
only one level of taxation, but also some significant disadvantages, such as unlimited personal liability”
(Geekie, 2014). This means that Shania would be legally responsible for any complaint filed against her
company, which could be avoided by forming as an LLC. By choosing to incorporate as an LLC, Shania
would have the tax pass through advantages of a sole proprietorship, but her business would be
recognized as a separate legal entity and would individually liable for its actions as an entity in the case
of tort or negligence.
The next question that Shania has to answer for herself is whether she will become a franchise or
whether she will open an independent coffeehouse. My recommendation will be that she franchise, but
I will weigh the benefits of each. Ultimately, Shania’s considerations about whether to franchise or to
stay independent will be based on her desires for scalability, profitability, and the ability to sell in the
future. The upside of being an independent company is that Shania can develop and define the
atmosphere of her coffeehouse, develop and advertise her desire to create a Christian atmosphere, and
provide products that are unique and meaningful to her and her team. The down sides are that she will
be opening a business in a saturated market, that her business will be located in a very liberal and
secular area in which a Christian theme may not be perceived as well as she hopes, and that she will
have to independently seek training, source materials, develop a menu, and make purchasing decisions
without the precedent that comes from a franchise. If, on the other hand, Shania were to choose to
franchise, she would have the experience and brand recognition of the company she franchised with,
would have training available to her team, and would have all purchasing decisions defined and
contractually agreed upon. Further, she would be able to more easily turn over the day to day
management of the business to her employees and may be able to scale her ownership to more
Concerning the availability of her desired name, The Gathering Place, it does appear as though
Shania could choose to incorporate her business with that title in Colorado, though she could not
trademark the name, as The Gathering Place Espresso Patio in Illinois owns both a word and design
trademark to use that name. Considering the fact that another company offering the exact same
products has registered that name as trademark, it would be unwise to incorporate her business using
the same.
The final consideration in Shania’s initial business plans is whether to choose a business partner
to start her company with. She must choose whether to invite one of her friends to take part in the
business with her, and which to invite. Though there is more and more precedent for friends doing
business together, Shania may find herself in situations that may not have much structure for decision
making and conflict resolution. In their article, Friends Doing Business, Tognazzo and Mazzurana write,
“Despite the widespread occurrence in new ventures of friends doing business together, research in
management devotes virtually no attention to friendship and to how it might be related to business
creative outcomes” (Tognazzu & Mazzurana, 2017). It is my suggestion that Shania carefully consider
the potential risks of each potential partner before making a choice. Because of her sister’s husband,
Shania and her sister could experience consistent difficulty in navigating business decisions together,
and Shania may even find herself taking on her sister’s work if the husband becomes even less
compliant and keeps her sister from tending to the business. The potential concern with Shania’s
neighbor is that he is not a Christian and that he has a market in mind that may not line up
demographically with Shania’s target demographic. In 2 Corinthians, Paul writes “Do not be unequally
yoked with unbelievers. For what partnership has righteousness with lawlessness? Or what fellowship
has light with darkness?” (2 Corinthians 6:14, English Standard Version). It may be potentially unwise
for Shania to “yoke” herself that does not share the same fundamental values that have led her to
dream up her business in the first place.
In conclusion, Shania’s potential business plan will make several options available to her that will
lead her down very different paths. Though she may consider things like scalability, resources, and
brand recognition to be important, she may also hope to serve the Kingdom through a unique business
that acts like a light. If she feels called in that direction, there are clear Biblical mandates that can define
and encourage her goals. Peter writes, “As each has received a gift, use it to serve one another, as good
stewards of God’s varied grace” (1 Peter 4:10, English Standard Version).
du Plessis, A. (2017). THE CHALLENGE OF BUSINESS PARTNERSHIPS. Accountancy SA, , 14-15. Retrieved
BUSINESS UNDER U.S. LAWS. International Journal of Arts & Sciences, 7(1), 33-43. Retrieved from
Tognazzo, A., & Paola Angela Maria Mazzurana. (2017). Friends doing business. an explorative
longitudinal case study of creativity and innovation in an italian technology-based start-up. Journal of
Entrepreneurship, 13(2), 77-103. doi:10.7341/20171324
Discussion Board
In order to advise Shania on which type of business will best meet her needs, I believe it
is important to define each type of business and explain the pros and cons of each. The first
option is a sole proprietorship. A sole proprietorship, as it sounds, is when and individual owns
Starting and Naming a Business
and runs a business. (DeFransesco, 2006) The positive aspects of a sole proprietorship are that it
allows the sole proprietor to have complete control over the operations, and the proprietor retains
all profits. The negative aspects of a sole proprietorship are that the funding available for the
business is limited to loans and personal funds, and that the owner is personally liable for any
lawsuits that can occur. (DeFransesco, 2006) This means that in difficult financial times funds
can only be raised through loans or investing personal funds. Also in the case of a lawsuit, if the
business does not have enough funds to cover the damages, then the proprietors funds can and
will be used to settle the damages.
A partnership is another option Shania can consider. In a partnership two, or more parties
share the ownership of a business. (Plessis, 2017) One positive aspect of a partnership is the fact
that in a partnership, any losses the business experiences can be deducted from taxes. Also, in a
partnership, all profits are split between the partners, and can be used as personal income.
(Plessis, 2017) The striking disadvantage to a partnership is similar to the disadvantage of a sole
proprietorship, in that the liability in the case of a lawsuit does not lay solely will the business,
and personal funds can be sought to resolve any potential damages. The unique aspect of this in
relation to a partnership is that in a partnership if one of your partners takes action that results in
a lawsuit, your partner’s and your personal funds may be sought to resolve the damages from the
lawsuit. For this reason, a potential business owner should be extremely cautious when choosing
potential partners to start a business with.
A corporation, is most likely not a viable option for Shania’s business. This is due to the
fact that a corporation is not a business but rather a legal entity that is created by selling stocks to
investors who then become the owners of the business. (West & Cargill, 2009) These
shareholders typically form a board of directors, and the board of directors then govern the legal
Starting and Naming a Business
entity that is the corporation. This would not work for Shania for two reasons. First, there is no
need for a corporation to be formed when she is simply trying to open a local coffee shop. It
would be unnecessary and she would not remain in control. Second, Shania has not proven
herself as a coffee shop owner, and has no current profits. For these reasons, Shania would have
a very difficult time attracting potential investors. A LLC or Limited Liability Company is
essentially a combination of a partnership and a corporation. It offers the advantages of limited
liability for shareholders and the ability to raise money through the sale of stocks. (Pestronk,
2017) This offers the benefit of reducing liability in case of a lawsuit, while offering owners to
raise capital as needed. The marked disadvantages of a LLC is that the corporate income tax is
taxed twice, which will result in a decrease in profits.
Now that we have examined the different business options that Shania can pursue, I will
advise her as to which style best suits her needs and desires. I would recommend that Shania
create a sole proprietorship. This is due to the fact that a sole proprietorship would allow Shania
to have complete control over her own business, and could retain all profits. Even though sole
proprietorships have unlimited labiality, it is unlikely that Shania will experience many lawsuits
while running a coffee shop. I would not recommend a partnership because her husband is
uninterested in working with her, her friend’s husband is not supportive, and Carlos is a nonChristian, and Shania’s intention is to run a Christian coffee shop. When creating a partnership it
is important to ensure that you chose partners who have support, and at least similar goals to
your own. “Do two walk together, unless they have agreed to meet?” (Amos 3:3, English
Standard Version) This verse is perfect example as to how important is for partners to agree so
that they can “walk together”. I would not recommend that Shania pursue working with a
franchise. This is due to the fact that she is attempting to open a Christian coffee shop, and that
Starting and Naming a Business
may not line up with the desires of the franchise. The franchise could then prohibit her from
taking a stance on religion within her shop and effectively taking away her control.
After a search of the data base the name “The Gathering Place” is not available in the
state of Colorado. There are many locations in Colorado referred to as The Circle’s Gathering
Place. Since the …
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