Mavis Corporation, a Canadian company, is a major wholesaler of women€™s shoes. The company has a history of substantial profits. In 20X7, its net income before tax amounted to $700,000.
Mavis Corporation owns (100%) three subsidiary corporations. The corporate structure is outlined below.

Information relating to the subsidiaries is provided below.
€¢ Triple A Ltd. This corporation was acquired five years ago, in 20X2. The company retails women€™s casual summer shoes and usually earns an annual pre-tax profit of $100,000.
€¢ Double A Ltd. Double A was acquired in 20X3 and retails women€™s high-fashion shoes. The company was profitable for two years after acquisition but has since suffered regular losses. At the end of the current year (20X7) it has unused business losses (non-capital losses) of $400,000. Losses of $50,000 are expected for each of the next three years. The company€™s assets include land and buildings that have risen in value.
€¢ Bean Ltd. This subsidiary operates a canning business, and its main customer is a large chain of retail food stores. The company was acquired in 20X6, and at the time of acquisition had unused business losses of $150,000 and an unused capital loss of $40,000. In 20X7, Bean suffered a further operating loss of $250,000. Management is concerned about the amount of this loss and is considering whether to close the factory or perhaps sell it.
Bean does not have any significant assets, as it rents its land and building under a short-term lease. It does own the manufacturing equipment, but this has little value.
Required:
Review the existing financial structure of the Mavis Group of companies and discuss what steps might be taken to enhance the company€™s growth potential.

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Mavis Mavis Corp. Triple A Ltd. Double A Ltd. Bean Ltd.