The TJ Cake Company Mini Case Study $1$

Tom Jones and Jane Fonda formed the TJ Cake Company. The

company produced a full line of cakes, and its specialties

included chess cake, lemon pound cake, and double$-$iced,

double$-$chocolate cake. The couple formed the company as an

outside interest, and both continued to work at their current

jobs. Tom did all the baking, and Jane handled the marketing

and distribution. With good product quality and a sound

marketing plan, the company grew rapidly. In early $2018,$ the

company was featured in a widely distributed entrepreneurial

magazine. Later that year, the company was featured in National

Food $,$ a leading specialty food magazine. After the article

appeared in the megazine, sales exploded, and the company

began receiving orders from all over the world.

Because of the increased sales, Tom left his other job, followed

shortly by Jane. The company hired additional workers to meet

demand. Unfortunately, the fast growth experienced by the

company led to cash flow and capacity problems. The company

is currently producing as many cakes as possible with the assets

it owns, but demand for its cakes is still growing. Further, the

company has been approached by a national supermarket chain

with a proposal to put four of its cakes in all of the chain's stores,

and a national restaurant chain has contacted the company

about selling TJ cakes in its restaurants. The restaurant would

sell the cakes without a brand name.

Tom and Jane have operated the company as a sole

proprietorship. They have approached you to help manage and

direct the company's growth. Specifically, they have asked you

to answer the following questions:

$3$

$1.$ What are the advantages and disadvantages of changing

the company organization from a sole proprietorship to a

Limited Liability Company $-$LLC $($Sdn Bhd$)?$

$(10$ Marks$)$

$2.$ What are the advantages and disadvantages of changing

the company organization from a Limited Liability Company

$-$LLC $($Sdn Bhd$)$ to a Public Limited Company $-$PLC $($Berhad$)$

$?$

$(10$ Marks$)$

$3.$ Ultimately, what action would you recommend the TJ Cake

Company$$s owner to undertake for upgrading their

company set up$?$ Why?

$(10$ Marks$)$

$4.$ TJ Company is planning to enter the Bursa Malaysia main

market in the near future. What are the requirements for

main board market listing in Malaysia?

$(20$ Marks