Scenario

You have worked contentedly for several years as a Certified Public Accountant at a

well-respected firm in your city called Accurate Accounts.

The owner, Anna Banks,

who has operated as a sole proprietor for the past 30 years, advises you that she

intends to retire at the end of this year.

She has long been impressed with your

work, and with the work of one of your colleagues, a fellow CPA, Penny White, with

whom you get along well, and have an excellent professional and personal

relationship.

Ms. Banks advises you that she is willing to allow you and Penny to take over the

business at her retirement and to continue using the name Accurate Accounts.

This is a well rated company, with excellent name recognition, and an existing

client base.

Penny states that she would like to remain as an employee, but it not

comfortable running a business.

Ms. Banks then offers you the opportunity to own

A tutor is crafting your explanation, it will be ready shortly.View Question Details

BUSS330 - Portfolio Project

2

the business, and after reviewing your financial situation, you agree to take over

the business.

At this time, Ms. Banks advises you that she has always run the

business as a sole proprietorship, and she offers it to you as such.

You purchase

100% of the company, including "business assets, inventory, equipment, and

assets, as well as liabilities, known and unknown."

Deliverable Descriptions

Week 3: Assess Business Liability

Due by the end of Week 3 at 11:59 pm, ET.

Eighteen months have passed since you assumed ownership of Accurate Accounts

and maintained it as a sole proprietorship.

A client schedules a meeting with you

to discuss his taxes completed by Accurate Accounts two years before.

During the

meeting, you recognize that an error was made by Penny White, who is still your

employee, while the company was owned by Ms. Banks.

This error resulted in a

loss of $160,000 to the client, which the client is now asking you, as the sole

proprietor of Accurate Accounts, to repay.

Your current liquid assets as a business

are $60,000, while your personal property and real estate are valued at $500,000.

Answer the following prompts, in minimally a 500-word response, with two

scholarly resources and in APA format

Analyze and explain what can be done under your current organizational

structure to formulate a resolution to this problem?

Elaborate on the advantages and disadvantages of your status as a sole

proprietor

Determine if Penny White still being employed is significant

Discuss whether you have any recourse against Ms. Banks