a.)What are the disadvantages and disadvantages of taking in Messrs. Bince and Antonio as co-owners of Solid Agricultural Company? What form of business organization do you suggest? Why? b.)What are the advantages and disadvantages of setting up a new company for Novaliches farm only? What form of business organization do you suggest?
II.Areas for Consideration
1.Koh’s mastery in agricultural development
2. Family owned company. Managed by Manuel who completed his degree in General Management at well-known Manila University 3.Debt free, the owner does not resort to borrowed funds.
1.Enough production of supply requirements of the pig finisher farms in Antipolo and Bulacan 2.Limited resources, do not resort in using borrowed funds.
3.Low Return on Investment (1.4%) and Net Profit Margin (0.62%) 4.Long growing period of hogs.
5.Large amount of working capital especially on cost of feeds
1.Sell to other small piggery farms in two provinces where it now operates 2.Proposed Novaliches farm may house the administration operations of Meycauayan farm, increasing the production of the latter 3.Feed mill in Novaliches can produce the feeds for
the expanded needs of the Antipolo and Meycauayan farms
4.Increased population in Metro Manila and strong purchasing power increases demand. 5. Novaliches is near to major markets of manila
6.Expansion in expected to increase revenues and decrease cost of sales
1.High cost of feeds and price control on pork
2.Novaliches farm do not guarantee success
III.Alternative Courses of Action
1.To accept the offer and take Messrs. Bince and Antonio as co-owners of Solid Agricultural Company. 2.To set up a new company for the Novaliches farm only.
3.To consider borrowing from the bank
IV.Evaluation of Alternative Courses of Action
To accept the offer and take Messrs. Bince and Antonio...