Mcgee Cake Company
Running Header: CASE STUDY 1
The McGee Cake Company: A Case Study
Submitter
Instructor
BUS Course
2012
CASE STUDY 2
Introduction
The McGee Cake Company, owned by Doc and Lyn McGee, has been a sole proprietorship company since its inception in 2005 (Ross, Westerfield & Jordan, 2013, p. 18). A sole proprietorship “is the least regulated form of organization” and has allowed the McGee's to run their company largely as they see fit and to reap all the financial profits. However, the company's recent growth has added additional financial burdens which have caused the McGee's to revisit the company's current form of organization (Ross, Westerfield, & Jordan, 2013, p. 5). To that end, the owners have approached me “to help manage and direct the [company since its fast growth has] led to cash flow and capacity problems” (Ross, Westerfield & Jordan, 2013, p. 18). What follows is information on “the advantages and disadvantages of changing the company's organization from a sole proprietorship to an [limited liability company] as well as “the advantages and disadvantages of changing the [company's current form of business organization] to a corporation” (Ross, Westerfield & Jordan, 2013, p. 18). In addition, the McGee's have asked me for my recommendation as to which form of business organization I believe the company should undertake and the reasons/rationale behind my recommendation.
CASE STUDY 3
Key Issue The one key issue that has led the McGee's to consider moving the
The McGee Cake Company: A Case Study
Submitter
Instructor
BUS Course
2012
CASE STUDY 2
Introduction
The McGee Cake Company, owned by Doc and Lyn McGee, has been a sole proprietorship company since its inception in 2005 (Ross, Westerfield & Jordan, 2013, p. 18). A sole proprietorship “is the least regulated form of organization” and has allowed the McGee's to run their company largely as they see fit and to reap all the financial profits. However, the company's recent growth has added additional financial burdens which have caused the McGee's to revisit the company's current form of organization (Ross, Westerfield, & Jordan, 2013, p. 5). To that end, the owners have approached me “to help manage and direct the [company since its fast growth has] led to cash flow and capacity problems” (Ross, Westerfield & Jordan, 2013, p. 18). What follows is information on “the advantages and disadvantages of changing the company's organization from a sole proprietorship to an [limited liability company] as well as “the advantages and disadvantages of changing the [company's current form of business organization] to a corporation” (Ross, Westerfield & Jordan, 2013, p. 18). In addition, the McGee's have asked me for my recommendation as to which form of business organization I believe the company should undertake and the reasons/rationale behind my recommendation.
CASE STUDY 3
Key Issue The one key issue that has led the McGee's to consider moving the
References: Cromwell, J. (n.d.). Demand Media: The Advantages and Disadvantages of Changing the Company Organization from a Sole Proprietorship. Retrieved from http://smallbusiness.chron.com/advantages-disadvantages-changing-company-organization-sole- proprietorship-24632.html Ross, S., Westerfield, R., & Jordan, B. (2013). Fundamentals of Corporate Finance (10th ed.). McGraw-Hill/Irwin: New York, NY