Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Required

Read fact situation below and complete the tasks in Part A and Part B.

Liam, Nisha, Saul and Jing are first year university students who have newly opened a bakery (Bio Breads) at their university. Liam, Nisha, Saul and Jing have entered the written agreement with university which enables them to use university cafeteria ovens overnight to bake bread which is then sold from the stall located within a university’s food court.

Only certified biodynamic or organic grains and ingredients are used in many various Bio Bread loaves, and on rare occasion ingredients are sourced from overseas, the Bio Bread operators, Liam, Nisha Saul and Jing, make sure only fair trade certified products are purchased. Operators all strongly believe that only sustainable agricultural practices must be encouraged and that grain growers and other suppliers must be paid a fair price for their labour. Additionally to these shared beliefs, Liam, Nisha, Saul and Jing don’t approve of large multinational corporations – preferring smaller business structures and the concept of buying from local suppliers wherever possible.

In keeping with their beliefs that fair price must be paid for labour Liam, Nisha, Saul and Jing believe they also must receive the reasonable financial return for their labour as bakers and operators of the Bio Breads business. While prices are kept as low as possible at a bakery, large volume of sales means that Bio Breads is a profitable operation. The operators select to share the profits equally between themselves.
Liam, Nisha, Saul and Jing are, though, finding it difficult to keep up with demand and often have to turn customers away. This is very much against their beliefs that Bio Breads must be a place where all who desire to purchase reasonably priced biodynamic, organic or fair trade food are welcomed. Liam, Nisha, Saul and Jing are also struggling to keep up with their studies since they are spending so much time running the bakery.

Liam, Nisha, Saul and Jing approach you for some advice. In particular, they are seeking your opinion about which of the following ways of organising the business is most suitable given the specific circumstances describeed above.

• Partnership

• Co-operative

• Company

While you are familiar with some of the characteristics of partnerships and companies you have less knowledge about co-operatives, so you inform Liam, Nisha, Saul and Jing that you require to do some research before you could give them your opinion.

Required: Complete the tasks in Part A and Part B.

Part A

Compare essential characteristics of partnerships, co-operatives and companies ‘the business structures’.
In your answer you must discuss:

• respective advantages and disadvantages of each of these business structures

• steps required in forming a partnership, a co-operative and a company – and how each business structure could be ended

• further structural options within each of the business structures (eg provided certain requirements are met a partnership might be the general partnership or a limited partnership)

• how capital might be raised, and any restrictions on capital raising for each business structure

• the regulatory environment for each business structure (is there a specific regulator? Does specific legislation apply to that structure? If so, is it state, commonwealth or a combination of both?)

• internal management and governance requirements for each business structure.
Limit your comparison to partnerships, co-operatives and companies – and structures within these. Don’t describe sole traders, joint ventures, franchises, associations. And ensure you use the correct state based legislation for your location.

Part B

Based on your comparison in Part A, advise Liam, Nisha, Saul and Jing which business structure is most suitable given the specific circumstances of the Bio Breads operations as set out above. In your answer you should give reasons for your advice.

You should also describe why neither of the other two business structures are, in your opinion, the most suitable.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92806

Have any Question? 


Related Questions in Accounting Basics

The purpose of this comprehensive project is to use a

The purpose of this comprehensive project is to use a variety of resources to research a corporation. You will also prepare a written paper describing your corporation and summarizing the findings you have developed in t ...

Accountingcase to assess assurance of learning goal ethical

Accounting Case to assess Assurance of Learning Goal (Ethical Perspectives) Michael Greer is the Marketing Vice President for Atlantic Lubricants headquartered in Boston with extensive operations in New York City that se ...

Assignment questionbesar ltd acquired all of the shares in

Assignment Question Besar Ltd acquired all of the shares in Kecil Ltd on 1 July 2015. At that date, equity of Kecil Ltd consisted of: Share Capital $2 000 000 Retained earnings 800 000 At 1 July 2015, all the assets and ...

Taskas part of the planning process for your new accounting

TASK As part of the planning process for your new accounting information system, your manager has asked that you prepare flowcharts. This graphic presents the flow of information through the accounting cycles. • Using th ...

Expl principles of accountingdepartment Expl Principles of Accounting Department

Expl Principles of Accounting Department Responsibility • Why should responsibility for related transactions be divided among different departments or individuals? Do you agree the transactions should be divided? Why or ...

Assignment managerial accountingbackgroundperformance

Assignment: Managerial Accounting Background: Performance Drinks, LLC is owned by Dave N. Port. Performance Drinks produces a variety of sports centered drinks. They began operations in 1993 shortly after Mr. Port gradua ...

Discussion questions 1 and 2dq 1accounting cyclefinancial

Discussion Questions 1 and 2 DQ #1:Accounting Cycle Financial statements are a product of the accounting cycle. Think about two different companies: a manufacturing company, and a retail company. Why would different comp ...

Question 1bringing account balances up to date before

Question 1 Bringing account balances up to date before preparing financial reports is called A. posting. B. adjusting. C. journalizing. D. analyzing. Question 2 The entry to record the expiration of part of the prepaid r ...

Questionson may 5 2006 disney company completed an all

Questions On May 5, 2006, Disney Company completed an all stock acquisition of Pixar, a digital animation studio. Disney believes that the creation of high quality feature animation is a key driver of success across many ...

Background of projectthe industry of medical devices

Background of Project The industry of medical devices involves a number of monitoring and reconstructive devices. Some of those devices include cardiac and diabetic care as well as hip and knee replacements. The owners o ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro