Restaurant Business as One of the Most Rewarding Type of Small Essay

Restaurant Business as One of the Most Rewarding Type of Small Businesses - Essay Example According to the research findings, it can, therefore, be said that restaurant business is one of the most rewarding types of small businesses. The researcher has witnessed one of his uncle’s advances so much economically because of owning one of them. His restaurant is a fast food restaurant located in the middle of one of the busy streets in Saudi Arabia. The main types of food served at the restaurant are chicken, chicken burgers, fries,  burgers,  pizza, sandwiches, junk food among other fast meals. Fresh fruit juices are also served at the restaurant. The restaurant offers quick dining for those who have time to sit and eat but for those who have no such time, quality food packaging services are offered. The legal ownership structure of the business The legal ownership structure for the restaurant in question is the sole proprietorship. The business is classified under sole proprietorship type of business because only one person legally owns the business, and he and t he business are treated as one entry. He did not partner with anyone in or outside the family in the setting up of the business or running it. Instead, he is the overall manager of the business, overseeing operations, and employees like chefs, customers attendants, and cashiers. At the end of every month, all the profits or losses are upon him alone and he carries liability for any debts incurred. Alternative possible structures An alternative for the sole proprietorship is General Partnership. However, their losses are determined by the extent of their investment. Peacock states that as for a Limited Liability Company, no partner is personally liable for any debts incurred by the business. Before commencing with business, all partners make a written agreement detailing the organization of the business, alienability of interests, provisions of management, and distribution of profits and losses. Sole proprietorship as the most appropriate structures Sole proprietorship is the most ap propriate type of business ownership structure, especially for a small business. It is best fitted for hardworking individuals and those who can learn to sacrifice for a better tomorrow. This is because the owner can decide to plow back a large portion of the profits accrued over a period just to ensure that the business expands within a short period. As for partnerships, not all partners could be ready to make this sacrifice. It is easy to make decisions in sole proprietorship since opinions are sought before undertaking anything. Such structure protects a business from the weaknesses that are found in some form of partnerships with family businesses where decisions are emotionally driven instead of being driven by logic. The owner is not obliged to hire any family members but qualified persons for the business. Out of the hard work of the month, there is no one to take away any portion of the profit from the owner. Reed points out that such business is not subject to government ta xes.