Nancy Wesla and Jordon Dugger have been in a partnership for five years. The principal business of
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The two partners realize that they must expand their capital base to expand their operations in order to meet the increasing demand for their systems designs. At the same time, they wish to take personal advantage of the partnership's earnings. They have been trying to determine whether they should continue the partnership and borrow the necessary funds, take on one or more partners (several of their employees have expressed interest and have capital to invest), or incorporate and sell a portion of the business to outsiders. With respect to incorporation, Faisal Jamal, a former classmate of Wesla's who works for a stockbroker, has indicated he knows of investors who would be interested in buying a share of the business.
Required
Wesla and Dugger have come to you to ask for advice. Provide an analysis of the situation and make a recommendation. In response to your questions, they indicate they will need additional capital of $1,600,000 to $2,000,000.
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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Related Book For
Accounting
ISBN: 978-0132690089
9th Canadian Edition volume 2
Authors: Charles T. Horngren, Walter T. Harrison Jr., Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood
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