Question.2882 - Discussion 1 - Scuffy the Tugboat is a family-run business that makes tugboats. It was formed as a partnership in 1996 by the three McLaughlin brothers—Mick (a naval architect), Jack (an accountant), and Bob (a marine engineer). Their first tugboat is still towing ships in Boston harbor, and over the years, success has allowed them to grow the company by plowing money back into it. Last year’s sales were more than $7 million. Now, however, they want to double production by expanding their factory by five thousand square feet. They estimate a cost of about $1 million, yet a bigger facility would enable them to avoid late-delivery penalties that can run up to $2,000 a day. They’re not sure, however, about the best way to raise the needed funds. None of the brothers has $1 million on hand, and because lenders are often hesitant to loan money to shipbuilders, even those with good performance records, local banks haven’t been encouraging. Unlike many partners, the three brothers get along quite well. They’re concerned, though, about the risks of taking on personal debts for the business. In particular, they don’t like being liable not only for their own actions, but also for the actions of all the partners. Question - You should recommend that Scuffy the Tugboat either remain a partnership or become a privately-held corporation. State the pros and cons of both forms of organization, and explain how they apply to the brothers’ situation. Discussion 2 - You have been appointed by the President of the United States to a new advisory position to address entrepreneurship. The President has indicated that he wants to promote the development of entrepreneurship. What policies would you recommend and why? Please use evidence from the textbook and outsider sources, if appropriate, to support your position
Answer Below:
It xx important xx know xxx difference xxxxxxx Partnership xxx Privately xxxx corporation xx as xx analyze xxx pros xxx cons xx both xx them xxxxxxxxxxx is xx informal xxxxxxxxx between xxx or xxxx persons xx carry x business xx occupation xxxx no xxxxx formalities xx paperwork xxxx are xxxxxx to xx filed xxxx the xxxxx whereas xxxxxxxxx held xxxxxxxxxxx is xx a xxxxxx agreement xxxxxxx individuals xxxx needs xxxxxxxxxxxxx papers xx be xxxxx with xxx secretary xx state xxxxxxx major xxxxxxxxxx between xxxx is xxx Liability- xxxxxxxx have xxxxxxxxx liability xxx they xxx personally xxxxxx for xxx debts xxxxxxx in xxxx of xxxxxxxxx held xxxxxxxxxxx the xxxxxxx liability xx limited xx the xxxxxx of xxxxx they xxx into xxx business xx a xxxxx but xxxxxxxx business xxxx choose xxx partnership xxxxxxx the xxxxxxxx have xxxx liability xx the xxxxx hand x bigger xxx more xxxxxxxxxxx business xxxxx choose xx form xx a xxxxxxxxx owned xxxxxxxx so xx to xxxx the xxxxxxx of xxxxxxx liability xx partnership xxxx partner xxxxx part xx decision xxxxxx process xxxxx many xxxxx lead xx delay xx the xxxxxxxx Privately xxxx corporation xxxx board xx directors xxx are xxxxxxxxx and xxxxxxxxxx as xxxxxxx to xxxxxxxx of xxx partnership xxxx From xxxxxxxxx aspects xx is xxxx to xxxxxxxx the xxxxxxxxxxx and xxxx start x new xxx with xxxx a xxx of xxx old xxxxxxxx or xxxx all xxx new xxxxxxxx A xxxxxxxxx owned xxxxxxxx tends xx be xxxx stable xxxxxxx of xxx board xx directors xxx can xxxxxx resigned xx replaced xxxx a xxxxxx of xxxx So xx the xxxxx case x would xxxxxxxxx Scuffy xxx Tugboat xx dissolve xxxxx partnership xxxx and xxxx a xxxxxxxxx held xxxxxxxxxxx which xxxx make xxx liabilities xx the xxxxxxxx limited xxx outsider xx it xxxx financial xxxxxxxxxxx creditor xx even xxxxxxxxxx will xxxx more xxxxxxxxxx on xxxxxxxxx held xxxxxxxxxxx as xx has xxxxxxxxx life xx can xx sued xxx has xxxxx decision xxxxx As xxxxxx the xxxxxxx want xx double xxxxxxxxxx by xxxxxxxxx their xxxxxxx by xxxx thousand xxxxxx feet xxx this xxxx can xxxxxx take x loan xxxx bank xx financialinstitution xxx which xxxx have xx give x surety xx the xxxxxxxx assets xx the xxxxxxx Unlike xx case xx Partnership xxxx would xxx be xxxxxxxxxx liable xxx the xxxx nbsp xxxxxxxxxxxxxxxx is xxx process xx starting x business xxxxxxx with xxxxxxxxx of xxx the xxxxxxxx resources xxx taking xxxx with xxx expectation xx getting x good xxxxxx Because xx risk xxxxxxxx and xxxx no xxxxxx of xxxxxxx an xxxxxxxx return xxxx individuals xxx afraid xx venturing xxxx a xxx field xx in xxxxx to xxxxxxxxx this xxxx the xxxxxxxxxx should xxxx for xxxxxxxxxxxxxxxx as x means xx boost xxx economy xxx give xxxxxxxxxx to xxxxxxxxxxxxxxx individuals xxxxxxxxx so xxxx their xxxxxxxxxx can xx increased xxx confidence xx the xxxxxxxxxx can xx increased xx governmental xxxxxxxxxxxxxx is xxxxx in xxxxx to xxxxxxxxxx business xxxxxxxx The xxxxxxxxxx can xxxx subsidies xxx can xxxxxxxxx policies xxxx promote xxxxxxxx development xx the xxxxxxx like xxxxxxxxx in xxxxxxxx and xxxxxxxxxxx giving xxx holidays xxxxxxxxx etc xx per xxx study xxxxxxxxx there xxx four xxxxxxx that xxx boost xxx entrepreneurship xx an xxxxxxx and xxxxx are xxx number xx procedures xxx formalities xxxxxxxxx to xxxxx a xxxxxxxx should xx decreased xxxxx should xxxx be xxxxx to xxxxxx the xxxxxx of xxxx it xxxxx to xxxxx a xxxxxxxx the xxxxxxx rsquo x GDP xxx a xxxxxx relationship xxxx entrepreneurship xxxxxxxxx it xxxxxx be xxxxxxxx and xxxxxx have xx increasing xxxxx and xxx employment xxxxx in xxx economy xxxxxx be xxxxxxx In xxxxxxx it xxxxx six xxxxxxxxxx and xxx days xx start x new xxxxxxx American xxx a xxx of xxxxxxxx which xxxxx that xx is xxxxxxxx producing xxx selling xxxxx and xxxxxxxx and xx per xxxxx percent xx American xx employed xx companies xxxx plus xxxxxxxxx This xxxxxxxxx of xxxxxxxxxxxxxxxx is xxxx reflected xxxxx American xxxxxxxx mainly xxxx Belmont xxxxxxxxxx where xxxxx had xxxx significant xxxxxxxx in xxxxxxxx going xxx entrepreneurship xxx students xxx also xxxxxxxx by xxx entrepreneurs xxx have xxxxxx strong xxxxxxx in xxx business xxxxx are xxxx Zukerberg xxx Steve xxxx It xx to xx noted xxxx media xxxx plays xx active xxxx to xxxx entrepreneurship xx the xxxxxxx If xxx government xxx ensure xxxxx climate xxx entrepreneurs xxxx entrepreneurs xxxx an xxxxxxxxxxxxx outlook xxx businesses xxx grow xxx economy xxxxxxxxxxxxx www xxxxxxxxx com xxxx governments-should-promote-entrepreneurship- xxxxxxxxxxxxxxxxxxMore Articles From Economics
.ico)
.ico)
.ico)
.ico)
