After finishing a course in Hotel and Restaurant Management at St. Paul's College,

Ms. Remedios Espiritu immediately starts to assist her mother in operating "Ristorante

Filipino" a big restaurant in San Fernando, Pampanga. The firm's total personnel

compliment of 30, which includes her mother as proprietors and manager. Consists of

waiter, cooks, cashier, a security guard, utility boy, technician, and a supervisor. A five-

piece band plays middle-of-the-road music every evening. By all indications, the

business appears to be succeeding.

As a consequence of favourable results, Remedios is requested by her mother to

prepare plan for expanding the business. The first move will be to open a branch within

San Fernando. The ten-year targetwill be to establish branches in Tarlac, Bulacan, Nueva

ecija, Bataan, and Zambales.

Remedios has a sister who is accountant, another is an industrial engineer, brother is a

chemist, and a mother is the training director of a company. all of them, except Remedios

are employed outside of the family business, with an average job experience of five

years. All of them indicated that hey preferred working with their mother , if given the

opportunity.

All the parts of expansion plan appear to be manageable task for Remedios.

Except that part which identifies the source of funding for the expansion. Even if the

family owns the restaurant, their mother does not want to rely on bank loans as source of

capital.

Remedios knows that the family's assets are not sufficient to finance even a

branch. However, her mother insists on opening new branches within two years.

According to her mother, " Timing is very important on business." The next two years is

very crucial to our continued success. To finance the proposed expansion, Remedios is

considering a change in ownership form as option. However she must think hard on the

type of ownership that will suit their family's business.

Questions:

1. what type of ownership is best suited for the expansion of the Ristorante Filipino? and what are its pros and cons?
2. How may the family maintain the control even if there is a change in ownership form?