GB518: Financial Accounting Principles and Analysis
Professor Roger Mayer
March 26, 2013
Fast Lane Automotive is a full service automotive repair shop and oil change service establishment located in Cumming, GA. This company has been open for over fourteen years and has generated quite a customer base within the local community. Fast Lane offers everything to its customers from putting air in their tire – free of charge – to replacing the motors if needed. This automotive shop strives on ensuring that its customers are taken care of and can rely on repeat business and new customers from their word of mouth.
Cumming, GA is a town north of Atlanta and has several other automotive shops that compete with the business of Fast Lane Automotive. These competitors are popular throughout the town and can sometimes pose to be an issue when certain specials are ran. Fast Lane has been able to begin relationships with several fleet companies that depend on their services to have the vehicles running properly in order for their businesses to run smoothly.
Fast Lane Automotive is a Limited Liability Company and the main operating activities are the automotive services they conduct to ensure the customers vehicles are running properly. Other activities include ensuring payroll for each of its employees is correctly done so that the employees are paid fairly for the work they do, timely. Also, facilities maintenance is a vital operating activity and is needed to ensure the customers are able to get in and out quickly when looking at having their vehicles serviced.
When speaking with the owners, a Limited Liability Company was chosen for this business because it gives flexibility to the owners. The flexibility given allows the owners the opportunity to decide how to govern their business. The main advantage that Fast Lane Automotive has by being a Limited Liability Company is that they are a hybrid business in which...