Bus 307 Case Study 1
Southern New Hampshire University
March 19, 2022
To: Fred and Sally
From: Freddy Arguello
Date: March 15, 2022
Subject: Fred’s Miracle Cough syrup
The memo is based on the initial meeting and subsequent research relating to Fred’s new
business involving a miracle cough syrup. As per the discussion that was conducted, you would
like to market your product locally as well as in several national sectors. You intend to produce
the syrup on your farm and take Sam’s assistance for making the deliveries. After conducting
research on the new business idea, a number of issues have been identified, such as potential real
property issues, liability issues, management issues etc. have been identified. Ultimately, a
suitable recommendation has been made regarding the business type that must be adopted to
introduce Fred’s Miracle Cough syrup in the market.
Business Entities
Some of the common types of business entities that exist include sole proprietorship,
partnership and corporation. The sole proprietorship is a type of entity that is owned by a single
individual. It is considered to be one of the simplest legal forms of business organizations that
can come into existence. Such an entity is relatively simple to manage and control. The owner
can act as the chief decision-maker, and he is the one who is solely responsible for the assets,
profitability, expenses and income. The partnership is a common form of business in which the
owners have unlimited personal liability for the operations and actions of the business. The
owners are responsible for investing their personal funds, efforts and time into the business, and
