Ahmed and Mohammed want to start their own business. They are thinking to establish a factory to manufacture sunglass in Oman. The factory needs an investment of OMR 600,000. Mohamed having OMR 150,000 and Ahmed having OMR 250,000. They have a shortage of OMR 200,000. Ahmed suggests to take loan from Bank but Mohammed suggests to sell shares to manage the investment shortage. They are confusing regarding the suitable source of finance to manage the investment shortage. This will affect the legal entity of their organization. There are many forms of organization, but they are confusing between LLC and SAOG.

Furthermore, Ahmed suggest to hire the following employees:

The Managing Director has the major responsibility for running of the company, including setting company targets and keeping an eye on all departments.

The Distribution Manager is responsible for controlling the movement of goods in and out of the warehouse, supervising drivers and overseeing the transport of goods to and from the firm.

The Production Manager is responsible for keeping a continuous supply of work flowing to all production staff and also for organizing manpower to meet the customers' orders.

The Sales Manager is responsible for making contact with customers and obtaining orders from those contacts.

The Finance Manager controls all the financial dealings of the company and is responsible for producing management accounts and financial reports.

The Public Relation Manager is responsible for external communications, media, social media and complains

The Human Resource Manager is responsible to handle all staff affairs, HRP, recruitment and selection, etc.

The IT Manager is responsible for maintain the organization ERP and any technology within the organization

Maintenance manager is responsible to maintain the production line and company assets.

Also, they are planning to hire 5 distribution officers, 5 accountants, 5 HR officers, 3 Public relation officers, 10 Trade promotors, 5 Mechanical Engineering for production, 5 Mechanical Engineering for maintenance 100 production labours and 10 Labour supervisors.

Based on the above, you are requested to help Mohammed and Ahmed in the following

3. Explain the two forms of organization mentioned above? Highlight the features of each form? (15 marks)

4. Being one of the partners of this organization, what is the form are you recommended and why? (15 marks)

5. Being one of the partners, what is the source of finance are you recommend to manage the shortage and Why? (15 marks)

6. Explain the main functional areas of a business organization that you have identified from the case study? Support your answer by identifying the responsible manager of each functions? (20 Marks)