Acme Fireworks Case 8
Acme Fireworks is a fireworks retailer that sells fireworks and does displays of fireworks. Two years ago the company started in the owner’s garage and has 15 employees. The owner has informed me that we have big orders to fill and promised the consumers we could deliver. The owner is needing to hire more skilled labor for the orders to be fulfilled. If the orders don’t fall through, the owner is now not only in fulfilling the orders but not being able to pay the added skilled labor if the orders don’t get done. The owner has started his company in a sole proprietorship and I am now encouraging the owner to turn his company into a partnership.
Acme Fireworks has grown tremendously throughout the years and is now requiring the company to …show more content…
change its entity. With growth in the company comes new responsibilities. Starting as a sole proprietorship, it is time for the owner to change its entity to a partnership. With demands of the consumer, the only way they could be met is by expanding and growing. With the demands of big orders comes a need of more employees. Managing Acme Fireworks means that I would be responsible for the growth and managing of the company. My responsibilities as a manager can include increasing the number of employees. Within this responsibility, it creates many more such as; creating new or more revenue to supply the new employees with a steady pay. The work flow and managing the company come together and show the owner that with a big order comes needed hands to help develop and accomplish the order. The effect of not having enough hands to help could lead to a miss order. The solution the owner has thought of was to change the entity of the business. My paper will discuss and give the reader an outline of what the owner is needing to do and understand while going through this transition from a sole propriety to a partnership for his company.
Acme Fireworks in this case is in the business of selling goods. They sell fireworks and offer their services in doing firework displays. “Any goods being sold would fall under the category of the UCC. A sales contract can be described as a contract where the main item is the goods which will be bought by the buyer by paying consideration to the seller. This would leave the fireworks entity to be governed by common law and bind the company into a contract.” (Cornell Law, 2015) It is my recommendation to do business with the Uniform Commercial Code and recommend their company to issue their contracts for business under the Uniform Commercial Code.
Acme Fireworks will put the four elements of an enforceable contract into consideration. The elements of the offer, acceptance, consideration, and mutuality are very important to close a deal. If there were to be any of the four elements lacking, the contract would not be legal. The elements are crucial for the closing of the contract with business to avoid any lawsuits or harm to the company. The nature of the contract would be an agreement both oral and written with both parties (Acme Fireworks and customer) agreeing to terms and conditions that our business offers in fireworks and firework displays. The offer will supply the customer with the information our business offers, which are fireworks and/or the firework displays. The acceptance will be the oral agreement to the service/product offering and will allow us to move onto the intentions of the contract. The consideration leads to the drawing of the contract of what service they are requesting and agreed to do. Finally, the mutuality is the understanding of both the customer and Acme Fireworks of what is agreed on and the agreement is signed. The potential personal liability Acme Fireworks faces is when buyers misuse them. Research has said that most common mistake of injury due to fireworks comes from lighting the firework and having them too close to friends and family. When it comes to an event that requires skilled labors to offer ground display or large aerial displays we as Acme Fireworks need to be careful and take caution on how we handle the fireworks. If we are providing a firework display, we could be held accountable if anyone is injured. Negligence is what we will be charged with. The statistics of injuries are the following provided by the Consumer Product Safety Commission: “230 people on average go to the emergency room every day with fireworks-related injuries in the month around the July 4th holiday. 67% of these fireworks injuries in 2014 occurred during the month surrounding July 4th. 9 people died due to 8 fireworks-related incidents. In at least 2 incidents, the victims were not the users.” (CPSC, 2014) Making sure that the firework display is protected with insurance and they can perform it risk free is the reassurance the liability gives to the company. The different types of employment that can help with this company is seasonal employees and contracted employees.
The seasonal employees would work their hours for peak periods, such as July 4th and New Year’s. “Businesses often need to hire workers on a seasonal or part-time basis. For example, some businesses may need seasonal help for sporting events, holidays, and commercial fishing or harvest seasons.” (IRS, 2017) In the company I can see seasonal employees working to sell fireworks for Acme Fireworks. The contracted employees would have to be skilled in their labor. The skill labor would come in for the firework displays. Contracted employees would be contracted for a specific peak period and for major events that happen during peak seasons. I would help the owners of Acme Fireworks contract workers as employees not as independent contractors. We would want control of how things will be done and how it will be done. We get to determine and decide how our service will be provided and …show more content…
performed.
Acme Fireworks should not operate as a sole proprietor but as a partnership.
Acme Fireworks will offer their fireworks for a trade of skilled labor in the partnership. The acceptance of both parties would lead to a teamwork environment when performing their consumer demands. The consideration of investing 50/50 in the growth and expansion of the business. The capacity of both parties to agree to draw up a contract to fit both their views and come to an agreement. That Acme Fireworks has the product and the partner will provide the skilled labor of the firework display. Then finally making it into a legal contract. The lawful purpose of creating a contract of their business in labor, shares, debt, and
profit.
“A partnership is a single business where two or more people share ownership.” (SBA, Paragraph 1) Acme would gain a partner who would run the with skilled laborers in performing the displays so that each of us could contribute all the aspects of the business. Which include money, property, labor, and skill. This partnership would allow us to share profits and share the losses.
The fact that partnership includes more than one person making the decisions, it is very important that the partners draw up a legal partnership agreement. This agreement will include how profits will be divided, how we will resolve disputes, and how the business would run and who would oversee what in the business. This legal agreement would help divide the work among the products and service work and responsibilities as well keep profit balanced by the agreement. The type of partnership I would consider is a general partnership. “General Partnerships assume that profits, liability and management duties are divided equally among partners. If you opt for an unequal distribution, the percentages assigned to each partner must be documented in the partnership agreement.” (SBA, Paragraph 3)
Just like any other business we would register for a tax ID number with the IRS. Partnership Taxes. This would allow our business to report income, deductions, gains and losses. Everything that happens in the business (money wise) it will be recorded. The profit that is made by each partner, they are responsible to have it recorded for their own personal tax information. These are tax rules and obligations for a business and one with a partnership.
The advantages of a partnership: The resources are doubled, the fact that there are two partners can invest equally into the business and it would help with anything else we would need for the business. Also in this case on partner can focus on products and the other on services. This type of partnership would balance the work load as well as the costs when starting. The investment and the balanced work can allow Acme Fireworks grow not only from its original numbers but from the new customer demand being fulfilled.
Acme Fireworks has grown tremendously throughout the years and is now requiring the company to …show more content…
change its entity. With growth in the company comes new responsibilities. Starting as a sole proprietorship, it is time for the owner to change its entity to a partnership. With demands of the consumer, the only way they could be met is by expanding and growing. With the demands of big orders comes a need of more employees. Managing Acme Fireworks means that I would be responsible for the growth and managing of the company. My responsibilities as a manager can include increasing the number of employees. Within this responsibility, it creates many more such as; creating new or more revenue to supply the new employees with a steady pay. The work flow and managing the company come together and show the owner that with a big order comes needed hands to help develop and accomplish the order. The effect of not having enough hands to help could lead to a miss order. The solution the owner has thought of was to change the entity of the business. My paper will discuss and give the reader an outline of what the owner is needing to do and understand while going through this transition from a sole propriety to a partnership for his company.
Acme Fireworks in this case is in the business of selling goods. They sell fireworks and offer their services in doing firework displays. “Any goods being sold would fall under the category of the UCC. A sales contract can be described as a contract where the main item is the goods which will be bought by the buyer by paying consideration to the seller. This would leave the fireworks entity to be governed by common law and bind the company into a contract.” (Cornell Law, 2015) It is my recommendation to do business with the Uniform Commercial Code and recommend their company to issue their contracts for business under the Uniform Commercial Code.
Acme Fireworks will put the four elements of an enforceable contract into consideration. The elements of the offer, acceptance, consideration, and mutuality are very important to close a deal. If there were to be any of the four elements lacking, the contract would not be legal. The elements are crucial for the closing of the contract with business to avoid any lawsuits or harm to the company. The nature of the contract would be an agreement both oral and written with both parties (Acme Fireworks and customer) agreeing to terms and conditions that our business offers in fireworks and firework displays. The offer will supply the customer with the information our business offers, which are fireworks and/or the firework displays. The acceptance will be the oral agreement to the service/product offering and will allow us to move onto the intentions of the contract. The consideration leads to the drawing of the contract of what service they are requesting and agreed to do. Finally, the mutuality is the understanding of both the customer and Acme Fireworks of what is agreed on and the agreement is signed. The potential personal liability Acme Fireworks faces is when buyers misuse them. Research has said that most common mistake of injury due to fireworks comes from lighting the firework and having them too close to friends and family. When it comes to an event that requires skilled labors to offer ground display or large aerial displays we as Acme Fireworks need to be careful and take caution on how we handle the fireworks. If we are providing a firework display, we could be held accountable if anyone is injured. Negligence is what we will be charged with. The statistics of injuries are the following provided by the Consumer Product Safety Commission: “230 people on average go to the emergency room every day with fireworks-related injuries in the month around the July 4th holiday. 67% of these fireworks injuries in 2014 occurred during the month surrounding July 4th. 9 people died due to 8 fireworks-related incidents. In at least 2 incidents, the victims were not the users.” (CPSC, 2014) Making sure that the firework display is protected with insurance and they can perform it risk free is the reassurance the liability gives to the company. The different types of employment that can help with this company is seasonal employees and contracted employees.
The seasonal employees would work their hours for peak periods, such as July 4th and New Year’s. “Businesses often need to hire workers on a seasonal or part-time basis. For example, some businesses may need seasonal help for sporting events, holidays, and commercial fishing or harvest seasons.” (IRS, 2017) In the company I can see seasonal employees working to sell fireworks for Acme Fireworks. The contracted employees would have to be skilled in their labor. The skill labor would come in for the firework displays. Contracted employees would be contracted for a specific peak period and for major events that happen during peak seasons. I would help the owners of Acme Fireworks contract workers as employees not as independent contractors. We would want control of how things will be done and how it will be done. We get to determine and decide how our service will be provided and …show more content…
performed.
Acme Fireworks should not operate as a sole proprietor but as a partnership.
Acme Fireworks will offer their fireworks for a trade of skilled labor in the partnership. The acceptance of both parties would lead to a teamwork environment when performing their consumer demands. The consideration of investing 50/50 in the growth and expansion of the business. The capacity of both parties to agree to draw up a contract to fit both their views and come to an agreement. That Acme Fireworks has the product and the partner will provide the skilled labor of the firework display. Then finally making it into a legal contract. The lawful purpose of creating a contract of their business in labor, shares, debt, and
profit.
“A partnership is a single business where two or more people share ownership.” (SBA, Paragraph 1) Acme would gain a partner who would run the with skilled laborers in performing the displays so that each of us could contribute all the aspects of the business. Which include money, property, labor, and skill. This partnership would allow us to share profits and share the losses.
The fact that partnership includes more than one person making the decisions, it is very important that the partners draw up a legal partnership agreement. This agreement will include how profits will be divided, how we will resolve disputes, and how the business would run and who would oversee what in the business. This legal agreement would help divide the work among the products and service work and responsibilities as well keep profit balanced by the agreement. The type of partnership I would consider is a general partnership. “General Partnerships assume that profits, liability and management duties are divided equally among partners. If you opt for an unequal distribution, the percentages assigned to each partner must be documented in the partnership agreement.” (SBA, Paragraph 3)
Just like any other business we would register for a tax ID number with the IRS. Partnership Taxes. This would allow our business to report income, deductions, gains and losses. Everything that happens in the business (money wise) it will be recorded. The profit that is made by each partner, they are responsible to have it recorded for their own personal tax information. These are tax rules and obligations for a business and one with a partnership.
The advantages of a partnership: The resources are doubled, the fact that there are two partners can invest equally into the business and it would help with anything else we would need for the business. Also in this case on partner can focus on products and the other on services. This type of partnership would balance the work load as well as the costs when starting. The investment and the balanced work can allow Acme Fireworks grow not only from its original numbers but from the new customer demand being fulfilled.