Zion Colter
Business Principles FA 2015
1. Advantages:
a. A partnership may yield from the mix of complimentary mastery of two or more people. There is a wider pool of knowledge, skills and contacts. With Greater’s if they made the decision to take on a partnership they would have a lot more connections making then broadly known with an extension of resources.
b. Partnerships can be cost-effective as each partner pursues certain aspects of their business. If Greater’s had more people in the particular specialties then duties would then become a lot more manageable.
c. Partnerships give moral support and will allow for more creative ideas to share. More ideas for Greater’s means more innovation and expanding the product.
Disadvantages:
a. Profits …show more content…
A major disadvantage of a partnership is unlimited liability. General partners are liable without limit for all debts contracted and errors made by the partnership. For example, if the partner of Greater’s owned only 1 percent of the partnership and the business fails, they would be called upon to pay 1 percent of the bills and Greater’s will be assessed their 99 percent. However, if their partners cannot pay, Greater’s may be called upon to pay all the debts even if they must sell off all your possessions to do so. This makes partnerships too risky for most situations.
i. Graeter’s is indeed a private company because with a closed corporation there are countless advantages. ii. There is separate legal identity meaning the corporation can sue in it’s own name or buy, own and use it’s own real/personal property. iii. There is asset protection meaning the company has limited liability and whoever does business with the corporation must satisfy any obligations owed to them. iv. There is perpetual existence meaning if the owner of the sole proprietorship dies the business will not cease to exist. Once the corporation is formed it continues until it is dissolved by actions of the owners …show more content…
Based off of the research Graeter’s isn’t a small business. Graeter’s annual sales to about $30 million. Ice cream accounts for roughly $26.3 million, bakery $3.5 million and candy $1.2 million. They handled exponential growth without compromising its identity and are now in places like Kroger everywhere, defiantly isn’t a small business.
4. They talked about in the video how franchising is about growth and it’s something that you can easily lose control of when it comes down to your product. They decided not to do it for that exact reason, because franchising the core product creates a risk for the organization and compromising the quality of it puts them in the position of loosing sight of the initial formula for being the best. Having quality over the quantity (franchising/more money). It was the right decision to make because you can never forget why you started for the sake of getting a quick fix to get the
Business Principles FA 2015
1. Advantages:
a. A partnership may yield from the mix of complimentary mastery of two or more people. There is a wider pool of knowledge, skills and contacts. With Greater’s if they made the decision to take on a partnership they would have a lot more connections making then broadly known with an extension of resources.
b. Partnerships can be cost-effective as each partner pursues certain aspects of their business. If Greater’s had more people in the particular specialties then duties would then become a lot more manageable.
c. Partnerships give moral support and will allow for more creative ideas to share. More ideas for Greater’s means more innovation and expanding the product.
Disadvantages:
a. Profits …show more content…
A major disadvantage of a partnership is unlimited liability. General partners are liable without limit for all debts contracted and errors made by the partnership. For example, if the partner of Greater’s owned only 1 percent of the partnership and the business fails, they would be called upon to pay 1 percent of the bills and Greater’s will be assessed their 99 percent. However, if their partners cannot pay, Greater’s may be called upon to pay all the debts even if they must sell off all your possessions to do so. This makes partnerships too risky for most situations.
i. Graeter’s is indeed a private company because with a closed corporation there are countless advantages. ii. There is separate legal identity meaning the corporation can sue in it’s own name or buy, own and use it’s own real/personal property. iii. There is asset protection meaning the company has limited liability and whoever does business with the corporation must satisfy any obligations owed to them. iv. There is perpetual existence meaning if the owner of the sole proprietorship dies the business will not cease to exist. Once the corporation is formed it continues until it is dissolved by actions of the owners …show more content…
Based off of the research Graeter’s isn’t a small business. Graeter’s annual sales to about $30 million. Ice cream accounts for roughly $26.3 million, bakery $3.5 million and candy $1.2 million. They handled exponential growth without compromising its identity and are now in places like Kroger everywhere, defiantly isn’t a small business.
4. They talked about in the video how franchising is about growth and it’s something that you can easily lose control of when it comes down to your product. They decided not to do it for that exact reason, because franchising the core product creates a risk for the organization and compromising the quality of it puts them in the position of loosing sight of the initial formula for being the best. Having quality over the quantity (franchising/more money). It was the right decision to make because you can never forget why you started for the sake of getting a quick fix to get the