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Business, 05.05.2020 23:57 chaaaa

Solar bike company was formed as a partnership ten years ago by three sisters-in-law: sharmin nahar, nafisa sumaiya, and rebecca sultan. all three worked diligently to design and produce the solar bike: an electric bicycle propelled by the sun’s rays. the good news is that the bike is a big hit with environmentalists and last year’s sales reached tk. 2 billion. the bad news is that to keep up with growing demand for the bike, the company must expand its capacity at a cost of tk. 1 billion. even though the company is doing well, it’s unlikely that the partnership could get the needed tk. 1 billion in funds from a bank. the company’s predicament was discussed at a recent partnership meeting. not only were the three partners unwilling to lend the company any more money, but also they voiced concern about being held responsible for their own actions as well as for all the partners’ actions. sharmin asked the group to consider incorporating and raising funds through the sale of stock. nafisa supported this idea, but rebeka was against it. the three partners hired you as a consultant to advise them on whether to remain as a partnership or to form a private corporation. in addition to your recommendation, you should discuss the advantages and disadvantages of both forms of organization and explain how they apply to solar bike company’s situation.

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