Andy Wants to Start His Own Business

question 13

Essay

Andy wants to start his own business.He has decided to rent space in a "strip mall" and open a pet shop.Additionally,he will provide dog grooming services.He figures he can do almost everything himself,though he will need to hire a part-time employee on an "as needed" basis.His friend,Lacy,has agreed to work when needed.
Andy is considering operating his business as a sole proprietorship.What are the primary legal advantages and disadvantages to this form of business ownership for Andy's pet shop?

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Definitions:

Stabilize

Make or become unlikely to give way or overturn; make firm, steady, or constant.

Price-Fixing

An illegal agreement among competitors to raise, lower, or stabilize prices or competitive terms, which interferes with free-market competition.

Sherman Act

A foundational United States antitrust law enacted in 1890 to prevent anti-competitive practices, monopolies, and to promote fair competition for the benefit of consumers.

Securities Regulation

The body of laws and rules governing securities, including issuing, trading, and disclosures to protect investors and ensure fair markets.