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Rewards International Company. 2 Introduction The name of the company is Rewards International, an organization dealing with vehicle manufacturing in the automotive industry in the small town of Jefferson, in Texas. The company will make luxury vehicles of different models targeting the middle-class members of the American society. The automotive industry is in continuous growth owing to the fact that the economy has continued to be stable and grow, and people who are at work can afford to buy luxury cars or take up loans for the same. Most American families have cars for every member of the family, and the head of the family can possess more than one at a go, in which case, there is that one car for status. Choosing to manufacture cars is responding to the growing demand for cars, opening up room in the industry for new entrants. Franchising with General Motors makes it possible to meet the financial requirements, as General Motors will provide much of the capital and technological resources required to set up the plant (Pfeffer & Sutton, 2013). Though the competition is high in the industry, the product offered by each company makes way for it in the industry. The small town is ideal for manufacturing since it hosts fewer people; hence the noise and the waste will be discarded appropriately with ease. Business legal form The business is a limited partnership of two that is forming a franchise with General Motors. Having it as a limited partnership aids the burden for the required capital contribution, as the partners will share the capital burden in a ratio that will reflect the share of their profits and losses. Again, one of the partners will be a general partner bearing the legal liability of the firm’s debts. The other partner will share limited liability as it regards to the amount he or she invested
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Rewards International Company. 3 in the partnership as well as act as a silent partner who need not be involved in the day-to-day management activities of the firm. Being a partnership will make them accountable to each other and their external investors. However, both partners will be involved in the strategic plans of the firm. Being in the U.S today, the partnership will be considered as a separate entity from its owners, reducing the risk for the owners in the event of the company raising suable issues. Also, a partnership is attractive, as partners are not double taxed on the profit proceeds from the partnership, as they do not pay income tax on the proceeds because the partners are considered as non-employees of the firm.
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  • Spring '18
  • Lexus, Mercedes-Benz, Luxury vehicle, Rewards International Company

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