Joy Parmenter
Bus311
Instructor Westerman
9-01-2014
Acme Fireworks
The Acme Fireworks Company is entered in several contracts with different company to manufacture fireworks. Because the price per unit was agreed upon the contracts are created. The owner is considering changing the company from a sole proprietor to something else. He also needs to understand his liability for damages or injury due to the fireworks. He also would like to know his options for hire help to fulfill the orders. The potential for personal liability for injuries to consumers by the fireworks that is manufactured at Acme Fireworks could be considered a real threat to the company. Hiring more employees is necessary, therefore there is a chance that the company is taking that the quality of the product may be reduced. If a …show more content…
It states in the article that “Follow up interviews revealed satisfaction of the permanent employees negatively impacted by perceived work load imbalances.” (Marson, C, (1989)) (Para 1) Another reason that the Acme Fireworks Company should choose to hire temporary employees is because, if the contracts fall through the company can end the assignment of the temporary employees and still be able to continue to produce the products that they did before the new contracts happened. An LLC partnership would be a good structure change for this company. The owner of Acme Fireworks would be able to find investors to help cover the cost of the overhead needed to fill bigger contracts as they arise without losing and control. The overhead cost could include the cost of materials needed to produce more supplies of the products. The cost of hiring more employees whether they are temporary or permanent employees. The increased cost of insurance whether it is for the employees or for the manufacturing insurance, such as, disability or health