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Studying The Case of The Recommended Business Structure for Jack and Jill

  • Subject: Business
  • Topic: Structure
  • Page 1
  • Words: 558
  • Published: 28 January 2019
  • Downloads: 34
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Business structure

There are various business structures like a sole proprietorship, partnership and the limited liability company. In the present case, it is not advisable to establish a sole proprietorship because there are two willing investors; Jack and Jill had the necessary financial/capital and skill resources in the important fields of physical education and nutrition specialization. Essentially, although a fitness centre requires more of the physical exercises, combining it with relevant advice to clients on the various diets to help them either reduce or improve weight according to the internationally acceptable standards of body mass index will offer additional services advantageous for the business. This can become a competitive advantage and strength of the business compared with competitors since clients may consider getting nutritional advice from the same place instead of consulting nutritionists elsewhere as it will save time and cost of traveling.

The recommendable business structure for Jack and Jill is private partnership since they will both contribute towards capital as partners. Legal formation of a partnership is provided under Australian Partnership Act in Section 1. Also, they will share the roles of business leadership in accordance with the agreements they will decide as well as managing other staff if necessity of hiring arises. Considering there are two main forms of partnership: general and limited, it is advisable they opt for a general partnership. This is through assuming they are the only investors in the business and directly responsible for managing/operating the business (Entrepreneur Media, 2018). Furthermore, they have the ideal professional skills for offering services to clients through fitness center thus will become directly engaged especially in the initial stages of offering services before hiring managers later if needed. On the contrary, a limited partnership is ideal for a higher number of investors and especially if they have no direct control over the business regarding management or being employees hence not recommendable for Jack and Jill.

Establishing their services through a fitness center will be most ideal for forming a company based on general partnership. The recommended types of obligations for Jack and Jill are based on their areas of strengths, interests, competency and availability. Considering that Jack is professional physical education teacher forms the foundation of making him competent for offering lessons and guiding clients on the aspect of physical exercises. On the other hand, Jill as a professional nutritionist can establish his skills in business by giving lessons on the required food intakes for a healthy body at a fee. Since this may not have a high workflow as the physical exercise, Jill can identify his areas of strength in physical education and learn from Jack so that he can help in guiding clients through the practical exercises as Jack offers theory. Assuming they get a moderate number of 30 regular clients for the first three months, they can be able to split this group in two and participate in both roles of business leadership as well as being the actual employees as instructors to facilitate cost reduction during the initial stages. Increasing the clients to around 70 can make them hire one or two instructors to help them as they multitask between management and being instructors too. With time as business stabilizes and gets over 100 clients, they can consider hiring permanent instructors and they concentrate on management roles.

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Studying the Case of the Recommended Business Structure for Jack and Jill. (2019, January 28). GradesFixer. Retrieved October 25, 2021, from
“Studying the Case of the Recommended Business Structure for Jack and Jill.” GradesFixer, 28 Jan. 2019,
Studying the Case of the Recommended Business Structure for Jack and Jill. [online]. Available at: <> [Accessed 25 Oct. 2021].
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