The Mcgee Cake Company Case Study

A corporation is a separate legal entity that possesses distinctive liabilities and privileges than that of their members or shareholders. As an investor, a corporation’s advantage is liability for their own investments especially in risky investments (Kubasek, et al., 2012, p. 760). Among the various types of corporations for Betty to select from, an S corporation is an enticing venture for new entrepreneurs given that it grants limited personal liability for debts, sharing of corporate profits, and taxation relief. Double taxation is a main disadvantage of C corporations but not for S corporations. The General Corporation Law (Corp C §§100-2319) treats S corporations similarly to partnerships for taxation purposes.

• LIABILITY – All liability rests in the sole proprietors shoulders. There is no hiding from liabilities of the company for the owner, nor is the business sheltered from liabilities of the proprietor. • INCOME TAXES – Since the owner and his/her business are one in the same, all income is then treated as personal income to the

* Independent variable coefficient – This is the measured effect the independent variables have on the dependent variable. This is the main output of the regression analysis.

In Task 2, the owner is correct in his need to move away from a sole proprietorship and into an entity where his personal assets will be shielded in the event of a business failure. There seem to be three major ways to remove this liability, which include a C-Corp, S-Corp and LLC. For this situation, I would recommend an LLC for the business owner and will explain why it will benefit him in the issues of liability, continuity, income taxes, profit retention and control.

A limited liability company protects each partner from personal liability for certain obligations of the company. An important difference from other partnerships is that each partner is liable for the debts and obligations of the partners. With limited liability Company, each state has its own laws governing partners for these vessels. Some states allow only certain professions, such as lawyers and accountants to form LLP. Some states only provide protection from liability for negligence claims, leaving personally responsible for other types of requests partner. For tax purposes, profits are divided equally between the partners and the partnership is not taxed separately.

34. The limited liability provided to limited partners means that they are not responsible for the debts of the business

The RemyCake bakery created a cohesive team and an established clientele and became a staple within the community. Their exemplary customer service and the charismatic presence of their founders created a unique work and customer environment. However, with the recent retirement of the RemyCake bakery founder, a number of issues have arisen. Our Task Force identified the origin of their organizational issues. The following summary addresses and provides solutions for the RemyCake Bakery’s issues of ineffective leadership style, lack of organizational hierarchy, under-developed employee training program, and poor communication at all levels.

When choosing a business structure, it is important to understand the kind of liability that you might face. For example, in the case of Jeb and Josh their business venture is very risky, they should choose a business form that minimizes any potential personal liability. I think that a limited liability company (LLC) allows them the maximum protection for their personal assets without the formalities of corporate bylaws, directors and shareholders.

e) Maintenance contracts - Maintenance costs should be included as incremental cash flows because they could change the NPV of the project if the maintenance costs are significantly different for each of the different projects.

Founded in 2000, Cocoa Delights is one of the youngest gourmet chocolate manufacturers in the industry. However we do not view our youth as a weakness, on the contrary, our youth is associated with our two most valued attributes: creativity and innovation.

Owners are not personally responsible for debts the business may accumulate. The ownership of a limited company is divided up into equal parts called shares (Bbc.co.uk, 2014).

“Liabilities are debts: money you owe. Every business carries some liabilities—for example, ongoing payments to suppliers, rent for your office, compensation to employees, or fees for contractors” (Mancuso, 2014). Added liabilities may result if a business is ravaged by a fire or flood or if the business owner(s) become the victim of a lawsuit—for example, a patron, client or customer decides to sue your company after hurting themselves on company property. It is the intent of this paper to examine the role and responsibility of liability in different types of businesses from sole proprietorships to

Limited liability Company (LLC): Business’ owners are only subject to limited liability for company’s debts and actions. Owners will be only liable for their own mistakes or negligence that they may show in occasions.

Dream Chocolate (D.C.) is a small company trying to survive in an industry with many competitors. The competitive environment comes from some factors. Firstly, D.C. bars are sold in specialty markets, fine gift stores and also available online. However, the competitive companies can also provide various chocolate bars for customers with the low price on the Internet. Secondly, comparing to the big chocolate company like Mars, D.C. is a small company that has the lower brand reputation. Therefore, there may be not many people would trust their products.

The whole process throughput time of making a dozen of cookies is 26 minutes. It takes washing, mixing and spooning 8 minutes to make a dozen of cookies. And preparation and bake time totally are 10 minutes. The final step of cooling, packing and accepting payment of cookies takes roommate 8 minutes to finish the cycle. Assume the night capacity is 4 hours, so Kristen and roommate have 240 minutes operating time. Since the oven only holds one tray, the second dozen takes an additional 10 minutes to bake. For example, first dozen of cookies take 26 minutes to make, second dozen of cookies take 36 minutes to make and third dozen of cookies take 46 minutes to make. So we can