Maria and Johnny are partners of the Lame Duck Restaurant. They have five employees working for the
Question:
Maria and Johnny are partners of the Lame Duck Restaurant. They have five employees working for the business. The business is doing well and has been profitable for them. An opportunity has arisen to expand the business into Palmerston and Darwin City. Maria and Johnny are keen to expand their business, but they will need a significant amount of funds to lease and fit out two more premises and employ approximately 10 more staff, as well as a manager for at least one of the other shops. Johnny is concerned about his potential liability for the debts and liabilities of the partnership. Also, he is concerned about the future of the business if one of them should decide to leave, as the current lease and future leases will be in both of their names. Based on the above facts, advise Johnny on the advantages and disadvantages of forming a company rather than retaining the partnership. I need the answer with related case examples.
Organizational Behaviour Concepts Controversies Applications
ISBN: 978-0132310314
6th Canadian Edition
Authors: Nancy Langton, Stephen P. Robbins, Timothy A. Judge, Katherine Breward