Professional Documents
Culture Documents
Group 30
CASE 2
A) We recommend following business to the people mentioned:
1) Amar Initially sole proprietorship and then move to company to raise new
capital and expand as he wants to grow fast.
2) Akbar - sole proprietorship as he is self-reliant and will have control over the
firm.
3) Anthony - partnership model to start an event management firm as it does not
require much capital and the profits and loss can be shared as he is a team player.
4) Amarpreet - LLP as he wants to run his hospital which can be managed by group
of professionals. It would also limit his liability as it involves risk.
CASE 4
A) No, we do not agree with Koyas loss calculation. He should not have included
personal expenses for the calculation of profit/loss. It is given that only source of
income was the fare collected from the cab. Bases on this we calculate revenues and
expense(Only business expenses to be included and personal expenses excluded)
Expenses
Revenue
Description
Groceries Purchased
Amou
nt (in
INR)
48275
2850
850
18000
1250
157500
11000
198000
7490
448000
2785
Description
Driver's uniform and
badge
Food and drinks
while driving
Diesel and oil
EMI
Down Payment
Total
Amou
nt (in
INR)
2785
18000
15750
0
19800
0
28500
0
66128
5
CASE 5
A) Reasons firm create their own subsidiaries are:1) Tax Relief: To offset profits in one part of business with losses in another especially
in tax heavens.
6) Equity Analyst and Fund Managers: Interested in credit rating (pg 15), share
performance and corporate debt restructuring (Pg 15)
7) Customers: Interested in knowing the ability to fulfil orders eg. steel industry
8) Suppliers and Other Creditors: Interested in profitability and improvements of the
company. Pg 10 and pg42