Research the advantages and disadvantages for Ian and his partners of: (i) keeping the business as a partnership (ii) converting the business to a private limited company.

 Greater % of profit made by Buckden Chips  Retain control of Buckden Chips  Decisions such as deciding to sell in smaller 40 gram packets can be taken by Ian and partners  Partnership formed by Ian with the other potato farmers and are thus directly responsible for 50% of the raw materials i.e. They control a quality supply of potatoes which make the crisps

 Substantial financial burden on each of the three partners – each has provided £400,000 of capital by borrowing and using their land as security  Future expansion as a partnership will depend on the business using their profits to expand the business meaning that the rewards to Peter and partners will be restricted  By supplying crisps for public consumption without the security of limited liability Peter and Co run the risk of financial ruin if for example food contamination resulted in a illness or death.

 Peter and partners wish to expand Buckden Chips and the formation of an Ltd would enable them to raise more capital through the sale of shares  This would also potentially reduce the financial burden on the partners of Buckden Chips  Buckden chips would have the protection of limited liability which is important given the nature of the product sold – a food stuff for public consumption.

 Reduced % of profit made by Buckden Chips  Greater possibility of losing control of Buckden Chips  Less influence re: decisions regarding the direction and running of the company – now shareholders and other directors to consider whose viewpoints will need to be given equal weight to  As the company grows a need for a bigger supply of potatoes may result in a loss of control of quality as the % supplied by Ian and the original partners is reduced

Investigate the issues that the managers of a business would consider before deciding whether or not to accept a large order from a customer at a discounted price.

 Previous dealings with the business – paid on time and in full  Regular customer – previously brought substantial custom to the business, the discount is partly a reward for this  Size of the order – will partly determine the discounted price

 Method of payment – if some form of deferred payment, what is the customer’s credit history i.e. have they made payments on time and for the correct amount  Dealings with other businesses – have they made similar large orders and paid on time and in full  Possibility of future dealings with the business