Do you think the Martin did the right thing in Sell out? Why or why not?
Do you think the decision to incorporate as a C corporation rather than an S corporation was correct? Explain.
What- If -anything - would you have done differently from the Martins?
Question 1: Do you think the Martins did the right thing in
selling out? Why or why not?
Answer 1: Depending on the prevailing circumstances, it was a
correct decision by Martins to sell selling Bloomin’ Lollipops,
Inc. With the growing age of Dot and Jiggs Martin, it could be seen
a better option for the two to sell their business and
retire.
Question 2: Do you think the decision to incorporate as a C
corporation rather than an S corporation was correct?
Explain.
Answer 2:
If we look closely, it was a very smart move by Martin to incorporate a C corporation in place of S corporation as S corporation has its limitation of disadvantage that all the shareholders are required to be the individuals, any kind of personal trust or estates. In fact, C corporation has many other benefits over S corporation. The C corporation provided them the opportunity to fully operate the Bloomin’ Lollipops, Inc. on their own and in case of any possible lawsuits, a number of protections are also provided.
Question3:- What- If -anything - would you have done differently from the Martins?
Answer 3:- In my opinion, the business should be sold by Martin to any close friend or relative. This will facilitate them an opportunity to hold some of the shares and remain the part of the company which they started
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Do you think the Martin did the right thing in Sell out? Why or why not?...
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