Overview
This paper will give you the opportunity to play the role of business consultant, applying your understanding of different business forms to scenarios in which you and a partner in the class will advise clients regarding their options when starting a new business.
INSTRUCTIONS (points will be deducted for not following each instruction)
For each client:
write a memo (see format below) for each client, explaining the pros and cons of each business option and how each option could meet the client’s needs – provide two options per client; try not to use the same options for both clients
all information should be based on class material – no outside research
underline each heading
single-space each paragraph under the headings
include recommendations for a written agreement (i.e., partnership agreement, operating agreement) and the types of things that should be included (e.g., profit/loss sharing, limitations on authority, events that cause dissolution)
- create one document for each client that includes both the memo and the suggestions for a written agreement
- both partners should submit the same document with both names on it – partners will receive the same score
DUE DATE: Friday, May 10 at 11:59 p.m.
- Client 1
- Simon and Garfunkel are two recent college graduates who have developed a groundbreaking app that can turn even the most tone-deaf person into a professional sounding singer. They’re starting to get a lot of attention on social media platforms and want to formalize their business endeavor before things get too crazy. Simon is the more business-oriented of the two and has a good head for numbers, while Garfunkel is very creative and particularly skilled at explaining their product to people and convincing them to try it. They don’t currently have much money and Garfunkel wants to keep things as simple as possible. Simon is thinking ahead about the impact success could have on them and how they can protect themselves. Each recommendation you make should take into account Simon and Garfunkel’s skill set, financial condition, and requests.
- Client 2.
Over dinner (and a lot of cocktails) one night, long-time friends Ariana, Taylor, and Harry discuss how unhappy each is in their current job and how great it would be to quit and go into business together. They realize that they potentially have the perfect combination of skills. Ariana is a successful software engineer who has already made her first million since she was recruited by a big Silicon Valley firm straight out of college. Taylor has been working her way up the ranks in a major accounting firm, but wants to find better work/life balance. Harry has had some failed business ventures, but is an excellent manager, has a knack for putting people at ease, and wants to try something new. (He has had a gambling problem in the past, but is working to get it under control.) Ariana, Taylor, and Harry would like to have control both over which one of them does what in their business, as well as how much say any potential investors might have. Each recommendation you make should take into account the skill set, financial condition, and requests of the three friends, along with any other factors that could impact their decision.