In the early of 2008, Person D and Person L formed a cake Company MG. The Company was a good producer of various cakes and they were specialized in few cakes. Person D did the baking activity and Person L took over the marketing and distribution. The company grew rapidly with good quality and sound marketing. After the article in the leading magazine, the sales of Company MG exploded and so Person D left his job followed by Person L. The company hired new workers for the fast growth of the company for experiencing cash flow and capacity issues. The company was still growing and was approached by various stores for their cakes. The couple has operated the company as a sole proprietorship. Characters of the case: Person D. Person L. Company MG. Magazine GD. Adequate information: Company MG faces cash flow and capacity problems. Company MG’s demand increases. Even national level markets approach them for delivery of their product. To determine: The advantages and disadvantages of changing the company to a Limited Liability Company (LLC) from a sole proprietorship.

Question

Want to see the full answer?

Answer 1

Question

Chapter 1, Problem 1M

Summary Introduction

Case summary:

In the early of 2008, Person D and Person L formed a cake Company MG. The Company was a good producer of various cakes and they were specialized in few cakes. Person D did the baking activity and Person L took over the marketing and distribution. The company grew rapidly with good quality and sound marketing.

After the article in the leading magazine, the sales of Company MG exploded and so Person D left his job followed by Person L. The company hired new workers for the fast growth of the company for experiencing cash flow and capacity issues. The company was still growing and was approached by various stores for their cakes. The couple has operated the company as a sole proprietorship.

Characters of the case:

Person D.

Person L.

Company MG.

Magazine GD.

Adequate information:

Company MG faces cash flow and capacity problems.

Company MG’s demand increases. Even national level markets approach them for delivery of their product.

To determine: The advantages and disadvantages of changing the company to a Limited Liability Company (LLC) from a sole proprietorship.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

What are advantages and disadvantages of changing the company organization from sole proprietorship to an LLC?

what are the advantages of an LLC versus operating as a sole proprietorship,

What type of companies should consider an LLC its form of ownership?

Answer 2

Question

Chapter 1, Problem 1M

Summary Introduction

Case summary:

In the early of 2008, Person D and Person L formed a cake Company MG. The Company was a good producer of various cakes and they were specialized in few cakes. Person D did the baking activity and Person L took over the marketing and distribution. The company grew rapidly with good quality and sound marketing.

After the article in the leading magazine, the sales of Company MG exploded and so Person D left his job followed by Person L. The company hired new workers for the fast growth of the company for experiencing cash flow and capacity issues. The company was still growing and was approached by various stores for their cakes. The couple has operated the company as a sole proprietorship.

Characters of the case:

Person D.

Person L.

Company MG.

Magazine GD.

Adequate information:

Company MG faces cash flow and capacity problems.

Company MG’s demand increases. Even national level markets approach them for delivery of their product.

To determine: The advantages and disadvantages of changing the company to a Limited Liability Company (LLC) from a sole proprietorship.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 1, Problem 1M

Summary Introduction

Case summary:

In the early of 2008, Person D and Person L formed a cake Company MG. The Company was a good producer of various cakes and they were specialized in few cakes. Person D did the baking activity and Person L took over the marketing and distribution. The company grew rapidly with good quality and sound marketing.

After the article in the leading magazine, the sales of Company MG exploded and so Person D left his job followed by Person L. The company hired new workers for the fast growth of the company for experiencing cash flow and capacity issues. The company was still growing and was approached by various stores for their cakes. The couple has operated the company as a sole proprietorship.

Characters of the case:

Person D.

Person L.

Company MG.

Magazine GD.

Adequate information:

Company MG faces cash flow and capacity problems.

Company MG’s demand increases. Even national level markets approach them for delivery of their product.

To determine: The advantages and disadvantages of changing the company to a Limited Liability Company (LLC) from a sole proprietorship.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 1, Problem 1M

Summary Introduction

Case summary:

In the early of 2008, Person D and Person L formed a cake Company MG. The Company was a good producer of various cakes and they were specialized in few cakes. Person D did the baking activity and Person L took over the marketing and distribution. The company grew rapidly with good quality and sound marketing.

After the article in the leading magazine, the sales of Company MG exploded and so Person D left his job followed by Person L. The company hired new workers for the fast growth of the company for experiencing cash flow and capacity issues. The company was still growing and was approached by various stores for their cakes. The couple has operated the company as a sole proprietorship.

Characters of the case:

Person D.

Person L.

Company MG.

Magazine GD.

Adequate information:

Company MG faces cash flow and capacity problems.

Company MG’s demand increases. Even national level markets approach them for delivery of their product.

To determine: The advantages and disadvantages of changing the company to a Limited Liability Company (LLC) from a sole proprietorship.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 1, Problem 1M

Summary Introduction

Case summary:

In the early of 2008, Person D and Person L formed a cake Company MG. The Company was a good producer of various cakes and they were specialized in few cakes. Person D did the baking activity and Person L took over the marketing and distribution. The company grew rapidly with good quality and sound marketing.

After the article in the leading magazine, the sales of Company MG exploded and so Person D left his job followed by Person L. The company hired new workers for the fast growth of the company for experiencing cash flow and capacity issues. The company was still growing and was approached by various stores for their cakes. The couple has operated the company as a sole proprietorship.

Characters of the case:

Person D.

Person L.

Company MG.

Magazine GD.

Adequate information:

Company MG faces cash flow and capacity problems.

Company MG’s demand increases. Even national level markets approach them for delivery of their product.

To determine: The advantages and disadvantages of changing the company to a Limited Liability Company (LLC) from a sole proprietorship.

Answer 6

Chapter 1, Problem 1M

Summary Introduction

Case summary:

In the early of 2008, Person D and Person L formed a cake Company MG. The Company was a good producer of various cakes and they were specialized in few cakes. Person D did the baking activity and Person L took over the marketing and distribution. The company grew rapidly with good quality and sound marketing.

After the article in the leading magazine, the sales of Company MG exploded and so Person D left his job followed by Person L. The company hired new workers for the fast growth of the company for experiencing cash flow and capacity issues. The company was still growing and was approached by various stores for their cakes. The couple has operated the company as a sole proprietorship.

Characters of the case:

Person D.

Person L.

Company MG.

Magazine GD.

Adequate information:

Company MG faces cash flow and capacity problems.

Company MG’s demand increases. Even national level markets approach them for delivery of their product.

To determine: The advantages and disadvantages of changing the company to a Limited Liability Company (LLC) from a sole proprietorship.

Answer 7

Chapter 1, Problem 1M

Summary Introduction

Case summary:

In the early of 2008, Person D and Person L formed a cake Company MG. The Company was a good producer of various cakes and they were specialized in few cakes. Person D did the baking activity and Person L took over the marketing and distribution. The company grew rapidly with good quality and sound marketing.

After the article in the leading magazine, the sales of Company MG exploded and so Person D left his job followed by Person L. The company hired new workers for the fast growth of the company for experiencing cash flow and capacity issues. The company was still growing and was approached by various stores for their cakes. The couple has operated the company as a sole proprietorship.

Characters of the case:

Person D.

Person L.

Company MG.

Magazine GD.

Adequate information:

Company MG faces cash flow and capacity problems.

Company MG’s demand increases. Even national level markets approach them for delivery of their product.

To determine: The advantages and disadvantages of changing the company to a Limited Liability Company (LLC) from a sole proprietorship.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 1.1 - What is the capital budgeting decision?Ch. 1.1 - What do you call the specific mixture of long-term...Ch. 1.1 - Prob. 1.1CCQ Ch. 1.2 - Prob. 1.2ACQ Ch. 1.2 - Prob. 1.2BCQ Ch. 1.2 - Prob. 1.2CCQ Ch. 1.2 - Prob. 1.2DCQ Ch. 1.3 - Prob. 1.3ACQ Ch. 1.3 - What are some shortcomings of the goal of profit...Ch. 1.3 - Prob. 1.3CCQ

Solution Summary: The author explains the advantages and disadvantages of forming a Limited Liability Company (LLC), based on the case of Person D and Person L.

Want to see the full answer?

Chapter 1 Solutions