1.

There are a number of advantages of converting the business from a sole proprietorship kind od
organization into a limited partnership. One of which is that limited liability that is afforded to the
limited partners. One of the major advantages of running a limited partnership business is the sharing of
responsibility among partners. Also, limited partners are not personally liable for the debts that the
business runs into. They cannot be held liable beyond the amount they contribute to the business. This
reduces the risk of putting personal assets in the line for repaying debts and obligations. Second
advantage of a limited partnership is that work responsibilities are shared. Working with partners
provide the advantage of sharing the workload. Various partners will bring a variety of abilities and
expertise to the table. Therefore, the workload can be split according to the skills, reducing the
workload for each partner. The end product after combining the work of each partner would be a
complete and detailed entity that is highly effective. Apart from the workload, the decision-making for
companies also rests on the partners equally. This reduces the responsibility on any individual while
maintaining a smooth workflow. Lastly, capital amount is generous. Since a partnership comprises more
than one individual, the amount contributed as capital is quite large. When a business goes into
operation with a generous amount of funding, the scope for the business automatically increases. This
results in greater flexibility and a surge in profit. A large capital amount forms a strong pillar for a
business to stand on and is, therefore, critical to the development of a business.

On the other hand, changing the business into a limited partnership also has its fair shre of
disadvantages. One of which is that in this typw of organization, limited partners do not have much to
say in decision making. Since the amount of liability that rests on the limited partners is quite less, their
role in running the company is limited. Even though the limited partners exercise a fair share of power in
the business, they do not have complete say in business decisions. Also, in a limited partnership, a major
dispute among partners can lead to a breach in agreement which unfortunately can lead to a worse
scenario which is dissolution.

2.)

Advantages of a corporation include personal liability protection, business security and continuity,
and easier access to capital. A corporation provides more personal asset liability protection to its owners
than any other entity type. For example, if a corporation is sued, the shareholders are not personally
responsible for corporate debts or legal obligations – even if the corporation doesn't have enough
money in assets for repayment. Also, corporation ownership is based on percentage of stock ownership,
which offers much more flexibility than other entity types in terms of transferring ownership and
perpetuating the business for the long term. Since most corporations sell ownership through publicly
traded stock, they can easily raise funds by selling stock. This access to funding is a luxury that other
entity types don't have. It is great not only for growing a business, but also for saving a corporation from
going bankrupt in times of need.
Disadvantages of a corporation include it being time-consuming and subject to double taxation, as well
as having rigid formalities and protocols to follow. Alongside the lengthy application process is the
amount of time and energy necessary to properly maintain a corporation and adhere to legal
requirements. You have to follow many formalities and heavy regulations to maintain your corporation
status. Corporations are expensive to form and operate. It might be easy for established corporations to
raise capital by selling shares, but forming and maintaining a corporation can be costly. You will likely
need a lot of startup capital to get a corporation running, in addition to paying the filing charges,
ongoing fees and larger taxes.

3.)

I would honestly recommend turning Super Delicious Cake Company into a corporation. We must all
remember that the company is now in its peak period and the demand for the products are becoming
difficult to reach because of minimum supplies. We are aware that the company is only operating using
both Dee and Lyn's assets and capital. The main issue here is how to keep up with the demand while
remaining to be competitive in all aspects of the company. Though changing it into a corporation might
seem costly, but I believe it would be worth it in the long run. We must not only view the pros and cons
in a short span but also look at the bigger picture and take into consideration the future of the company.