Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Glut-Max Gym
You plan to open GlutMax!, a full-service gym with solarium, health and beauty expertise, and personal trainers. You currently have $50,000 available. You estimate you will need $100,000 to start and operate the gym for 1 year. You also estimate you will need $25,000 a year for re-investment, assuming no growth. You plan on being the sole owner if possible, and having two managers: one for the technical side and one for the business side. You are well-known in the community and could obtain a loan since you have successfully been in business before. You could also find people to invest in your gym, but you don't like the idea of losing control. You have already started finding suppliers and buying equipment for your new venture. Your friend, Flicka, has agreed to do much of the footwork, in terms of applications and filings with the state, for a fee. So far, all has gone well except that last week Flicka forgot to set the brake on her van while dropping off a check to the printing firm that's doing the marketing materials for your new venture. Flicka's van rolled down a hill and crashed through six feet of redwood fence fronting a local real estate company run by an old friend of yours, Josh. Josh's told you that, because of Flicka, you have really put him in a bind, as now he has to pay to fix the fence and business has been terrible for the last few months. Now, with a shabby-looking front fence, he fears he'll get fewer walk-in customers. He's asking you to pay for the fence damage.
Use the above fact scenario to answer the following questions:
1) What form of business should you choose for GlutMax! And why? Justify your choice in relation to the other reasonable alternatives available to you.
The author of this report...
A sole proprietorship would give the owner full control but there is unlimited personal liability on the part of said owner. This makes sole proprietorship a bad choice. A general partnership is also a basic no-go for much the same reason. The liability is unlimited and the owner in question would actually have to share ownership between the partners. A limited partnership would not really make any sense because the owner that wants to retain control would be an active part of the management of the firm and would not be a limited partner. Thus, there is no real difference between a regular partnership and a limited partnership as far as the owner is concerned. A public corporation would be a non-starter because there would be a separation between the ownership and the control of the firm and that goes against what the owner is wanting. A subchapter S corporation would be the wrong choice for the same reason. The only major upside for the subchapter S corporation and the public corporation would be less liability. This leaves the last and best choice and that would be a limited liability corporation. There can be other members but there would be retaining of control and limiting of liability (Kubasek, Brennan & Browne, 2015, p 217-218)
2) Are you and/or Flicka responsible, legally or ethically, for Josh's fence repairs? Explain why or why not.
Per the Pearson custom text, there are three total considerations that have to be brought into this conversation
1) The van belongs to Flicka. Generally, this would mean that if Flicka was negligent, the burden of any accidents or mishaps would fall on Flicka and the insurance that is on Flicka and/or the…
Corporate Mergers and the Public Good The United States of America, during the last years of the Nineteenth Century, witnessed a rash of corporate mergers. The Industrial Revolution had taken firm hold, and the nation was changing rapidly. Millions of Americans who had once been independent farmers or tradesmen now found themselves in the position of what some termed "wage slaves." At the mercy of their corporate employers, they worked long
Corporate Governance on Organizational Performance Corporate governance implies to decisions made by the management in organizations, which influence the overall performance of the firm. Corporate governance focuses on organization's governance and the performance of duties within firms. Management of firms develops specific strategies or set of mechanisms that influence their decision-making. These decisions are crucial in firms where there is a clear difference in ownership and control. Some of the
Corporate Finance East Coast Yachts I My time horizon is long-run. I would want a diversified portfolio, but can afford to take the risk of equities. So the first decision is to go with 100% equities. I am not interested in company stock at the moment, because I want a diversified portfolio and I only want liquid securities with values set by the market. The company stock does not meet those criteria. In
Corporate Governance: A review of Literature What is Corporate Governance? Principles of Corporate Governance Theoretical foundations of corporate governance Agency theory Stewardship theory Stakeholder theory Post-Enron theories Corporate Governance: The changing trends Recent developments on regulatory front and research Corporate Governance: Relationship with market indicators Venture Capital Model: Impact on Corporate Governance Appendix I- Examples of Corporate Governing bodies This paper is a review of pertinent literature on corporate governance. Corporate governance addresses the control issues created due to the separation of ownership
Corporate Governance Identify the corporate governance problems leading up to the corporate scandals of the early 21st century. Which of these problems might McBride fall prey to if Hugh does not accept your proposed solution? Corporate governance has provided its fair share of publicity over the past decade. Most of which was a result of foul practices on the part of management, while some was due to a genuine interest in investor
Corporate Governance As some queries about corporate governance were there ever since 1932 - the period of Berle and Means, the expression of the concept of Corporate Governance was not found in English vocabulary until 25 years ago. However, in the previous two decades, matters relating to corporate governance have gained importance in academic literature as well as in public policy deliberations. Corporate governance came to be acknowledged as being synonymous