Barbara, Helen and Maureen have been working together for 18 months, running a business in England, making and selling celebration cakes and luxury desserts. They call the business ‘Sweet Pleasures’.
Between them they have been sharing the costs of buying materials, equipment, ingredients and paying the general running costs. They have been splitting the net profits equally (after paying running costs for the business) for the past 18 months. They have no written agreement setting out the terms of their business arrangements.
The business is doing well and recently they have been offered a 12 month contract to supply a variety of their luxury desserts to a very popular delicatessen’s shop. With the expansion of their business they have decided that it would be a good idea to investigate the possibility of formalising their business arrangements and are thinking of forming a private limited company as they have been told this would be a suitable business arrangement for them.
Task 1
Describe the type of business organisation Barbara, Helen and Maureen currently operate under. What are the advantages and disadvantages of continuing to trade as they do at present?
Last Completed Projects
| topic title | academic level | Writer | delivered |
|---|