Acme Fireworks Case Analysis

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Eli Keyz Ashford University Instructor: Mat Mzolex When it has been determined that there is need to change the business entity, it is imperative to figure out the most favorable business entity that will cater for the arising needs and also ensure profitability to Acme Fireworks. Acme Fireworks is a steadily growing sole proprietorship. According to the prevailing situation, there is need to change the business entity so as to meet the advancing needs. Acme Fireworks can choose any of the other three business entities i.e., a corporation, partnership or limited liability company. Each business entity has its pros and cons. When considering the prevailing personal liability, in case the contracts have already been put in place area valid, then the employment needs are supposed to sustain large orders. Considering the current situation, I recommend a public corporation for Acme Fireworks. Almost everyone in the United States has had a personal experience with fireworks especially during the Christmas and New Year celebrations. Fireworks are known to be dangerous and have a potential of causing serious injuries. Therefore, the potential liability of I juries caused to customers by fireworks is unavoidable. Upon exploding, fireworks can send out very hot embers. Furthermore, if positioned wrongly, a firework can set a house on fire. However, not all these injuries are caused by ignorance, carelessness or negligence. When taken, simple precautions can aid in avoiding such mishaps. Fireworks should be used correctly and as intended. Nevertheless, when improperly designed, fireworks can cause a malfunction leads to severe injuries and accidents. At this era of endless litigation and lawsuits, one should figure out the beginning of consumer responsibility and the end of product liability. This question has been made more complex by an upsurge of more intricate

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