Forms of business

Paper , Order, or Assignment Requirements

Question 1
Jesse and Jayden are friends who want to start a logistic firm. Their market focus is Western Canada. They both have considerable experience having worked in the industry. After completing his bachelor degree from the University of Regina, Jesse worked for Kima Logistics as a safety advisor before joining his father�s business. Jayden has worked as a fleet analyst with one of the leading trucking companies. He holds a bachelor degree in Commerce from the University of Saskatchewan. Both Jesse and Jayden want to be involved in the business, including operations, administration and planning.
Jayden has hinted that trucking business is less capital intensive. According to their business proposal and research, they will require a business registration, fifteen vehicles, an office, software, and twenty five full time employees. They understand that logistics business is high risk. They contacted an insurance firm about getting coverage to cover the potential liabilities. However, they were informed that their business is high risk and it is unlikely that they will get proper coverage.
Supposing you own a business consulting firm, and Jesse and Jayden come to you for advice, please answer the following questions:
a) Identify the potential risks using the following framework � business, economic, political, social, and competitors.
b) What are the main issues faced by Jesse and Jayden?
c) What form(s) of business would you recommend?
d) What are the advantages and disadvantages of this form of business?
Page 1 of 3
Question 2
Sarah lives in Regina, Saskatchewan. During a community fund raising event, she was told by many people that her cookies were the best. Apart from cookies, Sarah likes to bake and she is an incredible candy maker. Sarah will like to start a confectionary business.
Market intelligence suggests that confectionaries are generally complements to other product. Sarah focus is Regina, a city of approximately 180,000 people. Sarah has two ideas on how to get her product to the consumers. She can either open a store in a busy area, or supply other outlets in wholesale prices.
Confectionary business is capital intensive. Her initial findings show that around $350,000 will be required. She has $80,000 in her high interest savings account of 2% per annum. Her parents want to invest in her business but do not want to be involved in the business operations or responsibilities.
An independent confectionary enthusiast has been collating some data based on outlets sales reports since 2000. The data is attached in a separate sheet.
Using the data and other information: please answer the following questions:
a) What form of business structure will work for Sarah;
b) In details, explain your answer in A above stating clearly the advantages and
disadvantages;
c) What is Sarah�s opportunity cost if she invests in the business?
d) Suggest three different methods/ways Sarah can raise capital; and
e) If Sarah wants to specialize, what product should Sarah specialize?
IMPORTANT NOTES AND INSTRUCTIONS:
? Names, data and information are fictitious.
? Answer to each question must not be more than one paragraph (50 words)
? Where possible and needed, feel free to make assumptions. However, state your
assumptions clearly
? I will be in my office by 6:00 P.M. on Tuesday, September 27.
Page 2 of 3
Appendix A: Data Collected by Jima Brown
Year
Quantity of Candy (packet)
Quantity of Cookies (packet)
ALL Wheat Bread (loaf)
Wheat Bread (loaf) made in Province
2000
150,000
180,000
100,000,000
40,000,000
2001
155,000
181,000
120,000,000
50,400,000
2002
171,000
181,200
135,000,000
60,750,000
2003
172,000
182,000
135,500,000
50,135,000
2004
171,500
182,100
136,000,000
51,680,000
2005
172,000
182,750
140,500,000
51,985,000
2006
180,000
200,000
150,000,000
61,500,000
2007
185,000
235,000
167,500,000
72,025,000
2008
200,000
231,000
188,000,000
83,660,000
2009
225,000
230,500
208,500,000
95,910,000
2010
235,500
225,000
220,000,000
104,500,000
2011
250,000
221,000
245,500,000
119,558,500
2012
253,000
220,000
240,000,000
117,600,000
2013
260,000
220,500
260,800,000
128,052,800
2014
261,000
219,000
271,100,000
133,923,400
2015
263,000
210,000
278,400,000
138,921,600
Page 3 of 3

find the cost of your paper
Responses are currently closed, but you can trackback from your own site.