Book Opener

The Opening SceneStarting in this chapter, you will witness the growthof JAC Industries from a partnership to a corporation.The business is owned and operated by Jakob andAaron Kowalski and Cecilia Bronislawa. Jakob,Aaron, and Cecilia are touring a warehouse outsidethe city limits.Setting Up ShopCECILIA: I’m not sure that I like it here. Just how muchdo they want for this place?JAKOB: About $2,700 per month. I think that’s areasonable rate.CECILIA: Are you crazy? I disagree. That’s too muchfor only one floor.AARON: It’s for the whole building.CECILIA: It’s still too much. Besides, I don’t like theneighborhood.JAKOB: (Exasperated.) What’s wrong with theneighborhood?CECILIA: It’s too . . . industrial. I wanted something alittle more refined.AARON: You were expecting green lawns andswimming pools, maybe?CECILIA: No. I wasn’t expecting a palace. But we’renot a manufacturing firm, and everything elsearound here looks like a factory.JAKOB: That’s because everything else around herereally is a factory.CECILIA: See, that’s just what I mean. Did you evencheck with the zoning board? It might not even belegal for us to operate here.AARON: Yes. We picked this place precisely becausethe zoning board said this area is okay for our kindof work.CECILIA: Well, I suppose it will have to do. I guessI can live with it.AARON: Thank you, Ms. Perfection. Anyway, I thoughtyou were going to be a silent partner. You certainlyhave raised a lot of fuss for a silent partner. I’m notsurprised by your behavior, though.CECILIA: Secret—a secret partner, not a silentpartner.AARON: What’s the difference?JAKOB: If you’re a secret partner, no one knows thatyou’re part of the business. If you’re a silent partner,everyone knows you’re a partner, but you can’tmanage anything.AARON: Well, I don’t care what we call her, as longas she signs the partnership papers tomorrow. Areyou planning on signing, Cecilia? You’d better notlet us down or cause any problems.CECILIA: Don’t worry; I’ll sign.AARON: And you’ll have your capital contributionin hand?CECILIA: Every penny. What about you guys? CanI count on you to have the money?AARON: Every red cent.CECILIA: I guess we have a deal.JAKOB: Agreed.CECILIA: Then that makes us JAC Industries.AARON: Absolutely.CECILIA: I still think we paid too much for this place.1. What is a sole proprietorship?2. What are the advantages and disadvantages ofa sole proprietorship?3. What is a general partnership?4. What is a registered limited liability partnership?5. What is a limited partnership?Chapter 27: Sole Proprietorship and Partnership 583