Question
Question 1 Kellsy and Kelly run their own bakery since 2015 as a sole proprietorship , The do sell variety of cakes and cookies .
Question 1
Kellsy and Kelly run their own bakery since 2015 as a sole proprietorship , The do sell variety of cakes and cookies . Kellsy do the baking with a help of few staff in the bakery and Kelly handle the marketing and distribution . WIth good product quality and a sound marketing plan , the company grew rapidly . Unfortunately , the fast growth experienced by the company led to cash flow and capacity problems. The company is currently producing as many cakes as possible with the assets it owns, but demand for the cakes is still growing . Future ,the company has been approached by a national supermarket chain with a proposal to put their cakes in all of the chain's stores , and a national restaurant chain has contacted the company about selling their cakes and cookies in it's restaurant.
They have approached you to help manage and direct the company's growth . Specifically . they have asked you to answer the following questions.
- Discuss FOUR (4) benefits and TWO (2) shortcomings of changing the business from a sole proprietorship to corporation
- What action would you recommend the company to undertake? Justify your answer.
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