BUSINESS ORGANIZATION AND BUSINESS TORTS

Business Organization and Business Tort
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Business Organizations and Business Torts
 Introduction
According to Suryasa (2022), when a business adopts a good business structure, it increases its chances of success. Certain legal liabilities that may arise due to a lack of adequate knowledge are avoided, which is profitable for a business (Adamus, 2020). In this case, Stacy is contemplating taking the CEO title, and she even has two employees. Thus, as the business grows, it is highly likely to face various lawsuits for negligence. Also, with businesses growing, taxes of different sorts may be required. Thus, Stacy must adopt a good business structure for better profit and avoidance of various liabilities.
 Kind of Liability Stacy's Business is Likely to Face
In Stacy's business, there are a lot of potential liabilities that she is likely to face as the sole owner. First, since she has hired two of her friends from the book club, she becomes liable for all their negligence when working for her. Since Stacy is the sole owner of the business, for all the errors or negligence that her two employees may commit, she is liable as she is the head. Furthermore, since the two friends are not professionally qualified individuals to deal with food, there is a possibility of different kinds of negligence occurring. Thus, in the event of an allergic or stomach condition that a customer is likely to face after consuming the muffins, the liability will be on Stacy. Additionally, since the employees may not have the needed qualifications, cases of incomplete or incorrect ingredients may be experienced. As a result, a serious lawsuit may arise, and this will be a burden for Stacy to carry. Furthermore, Stacy is likely to lose her personal property because her business has unlimited liability.
    Legal Structure that Stay's Business Should Adopt                        
The most efficient legal structure Stacy's business should adopt is becoming a limited liability company. According to Travis (2019), a limited liability company entails a business structure where the owner, whether an individual or more than one, has limited liability in relation to actions that are taken in the company. As a result, the company is treated as a legal entity that has the potential to make its own decisions and even face legal liabilities (Adamus, 2020). Addition...