Description
For this case study, craft a professional memo, appropriate in format, tone, and content, to send to your clients Fred and Sally, with your preliminary thoughts on the issues within. Your memo should illustrate the issues and relevant law, apply the facts, and support your conclusions with regard to each issue. Always remember to be clear, kind, and professional in your communications.
Unformatted Attachment Preview
Purchase answer to see full attachment
Explanation & Answer
Please view explanation and answer below.Am doneplease have a look at the attachedWhenever you have a task please remember to invite me , Leah_The_TutorIn case of anything, am readily availablebye bye
Running head: CASE STUDY ANALYSIS
Case Study Analysis: Professional Memo
Student’s Name
Institutional Affiliation
1
CASE STUDY ANALYSIS
2
Case Study Analysis: Professional Memo
Introduction
Before the commencement of sales, and following the establishment of a business entity,
a company has a task of defining the type of business entity that it runs. This definition is
important because it stipulates the structure that an organization is bound to adopt, as well as the
type of business policies that would apply to that entity (Prakash, 2020). There are fundamentally
four kinds of business entities, that is: 1) Sole Proprietorship-As the name explains “Sole”
implies that an individual or one person, has the responsibility of running a business, and even
though this makes it an exception as a legal entity, the advantage that comes with this kind of
organization structure is that it has a simplistic set-up and nominal costs. However, there is the
danger of a sole proprietor, bearing all the risks and liabilities of their organization on their own.
2) A Partnership-This form of business entity dictates an organizational structure that involves
the sharing of control and profits by different investors (two or more) (Prakash, 2020). The
principle advantage of this kind of business set up is that risks and liabilities are shared amongst
all the owners, reducing the extra burden that is experienced by an individual in the case of sole
proprietorship. 3). LLCs- This form of business entity has conventionally been referred to as
hybrid, founded on the fact that it aggregates the ease of management of a partnership and allows
for liability protection of a corporation with the tax treatment. This type of entity offers
protection to company owners from liabilities and debts (Skripak, 2016). Just as with
partnerships, LLCs also do not require the meeting of owners annually. However, the demerit of
this form of business entity is that it is quite costly to start up and manage and necessitates
periodic annual and filing charges. Additionally, LLCs, through the state, have to file for articles
of organization, which in some instances requires business owners to seek for legal advice. 4)
CASE STUDY ANALYSIS
3
Corporations: Corporations as the fourth type of business entities, are the best in helping
investors raise investment capital. Initially at the start of such a business entity, it can raise
capital by selling stock shares. As Amador-Dumois et al. (2013) explain, those who have bought
these shares are then recognized as part owners in the company in question.
Product Liability
According to Brannen et al. (2012), products liability points to the parties involved all
through the production chain, and responsible for the deformations or reduction of quality of a
product. With reference to the case of Fred’s miracle cough syrup, even though it is
homeopathic, the case study indicates that one of the key ingredients has the potential to cause
severe reaction when used together with aspirin. The implication of this is that Fred who is
involved in the production of the syrup is the only party with product liability. To avoid having
to absorb such kind of a liability, Fred could ensure that the effects of use of the syrup with other
drugs is included as part of its label contents. This would help to inform consumers in advance.
Agency Relationship
According to Oteng (2016), in an agency relationship, the principal, that is the owner of a
company accords legal authority to an agent to negotiate or operate on their behalf. With regards
to the case study of Fred, his son Sam, from raving concerning his father’s product, ma...