In the event that Otis Owner decides to open a cookie baking business, he should select the option of sole proprietorship. Beatty defines sole proprietorship as an unincorporated business owned by one person. The rationale for selecting a sole proprietorship is because of ease of formation. It is easy to run the business without taking any formal steps to create an organization. Otis can start to bake and sell the cakes without the worries of having to go through tedious and resource consuming documentation that are common with llc and corporations. Otis does not have to write up an articles of association or get a lawyer to draft one for him.
The formal steps needed are obtaining a trading license from the local government as proof that a business exists. Another reason that is associated with sole proprietorship is the taxation whereby a sole proprietorship is a flow-through tax entity, implying that the business does not pay taxes. Furthermore, Otis Owner will not be required to file a separate tax return. A sole proprietor also has the freedom to make decisions for the business alone, making decision making to be fast enough, compared to corporations whose decision making takes time, and it might require holding an annual general meeting.
Liability
In the event that Otis hires Kelly Kleaner to work at the bakery, Kelly qualifies to be an agent of Otis because he will be working on behalf of Otis; who will be the principal in this case. When Doug Driver slips and breaks his leg as Kelly mops the floor, the issue on whether Otis is responsible depends on whether Kelly was negligent in his work. In this case, the driver steps on the wet floor and has his leg broken, but it is not clear whether Kelly had accidentally left the floor wet with the intention of causing the injury. However, I believe that Otis cannot be held responsible because the driver ought to be careful and see that he was stepping on a wet floor. This could be an accident like any other and Doug Driver could have fallen on any other place.
Nonetheless, Otis could be held responsible for the injuries suffered if it can be proved that Kelly did not put a sign to indicate that people getting in should step carefully since the floor was wet in line with the duty of care. Beatty (1) notes that an agent owes a principal the duty of acting with reasonable care. That means that an agent has to act as a reasonable person would under the circumstances. Kelly Kleaner should have put a signage to show that the floor was wet as any reasonable person would.
Ethical Concerns
Otis should not use the artificial sweetener because of the financial gains and leave his customers exposed to the risk of cancer. Although profits are needed in business, they should not precede humanity. Utilitarianism ethics dictates that an action that results in the greatest good for all people should be taken (Shaw, 2). In this case, Otis will enjoy increased profits alone or together with his family, but all the people consuming his cookies will be at risk of getting cancer. As such, the health of the majority of people should come first at the expense of profits.
Liability
In the event that Otis hires Kelly Kleaner to work at the bakery, Kelly qualifies to be an agent of Otis because he will be working on behalf of Otis; who will be the principal in this case. When Doug Driver slips and breaks his leg as Kelly mops the floor, the issue on whether Otis is responsible depends on whether Kelly was negligent in his work. In this case, the driver steps on the wet floor and has his leg broken, but it is not clear whether Kelly had accidentally left the floor wet with the intention of causing the injury. However, I believe that Otis cannot be held responsible because the driver ought to be careful and see that he was stepping on a wet floor. This could be an accident like any other and Doug Driver could have fallen on any other place.
Nonetheless, Otis could be held responsible for the injuries suffered if it can be proved that Kelly did not put a sign to indicate that people getting in should step carefully since the floor was wet in line with the duty of care. Beatty (1) notes that an agent owes a principal the duty of acting with reasonable care. That means that an agent has to act as a reasonable person would under the circumstances. Kelly Kleaner should have put a signage to show that the floor was wet as any reasonable person would.
Ethical Concerns
Otis should not use the artificial sweetener because of the financial gains and leave his customers exposed to the risk of cancer. Although profits are needed in business, they should not precede humanity. Utilitarianism ethics dictates that an action that results in the greatest good for all people should be taken (Shaw, 2). In this case, Otis will enjoy increased profits alone or together with his family, but all the people consuming his cookies will be at risk of getting cancer. As such, the health of the majority of people should come first at the expense of profits.
