Business Ownership Choices - 10 Mark Question

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Business Ownership 10 Mark Question (May 2012)

Given Context:

Orion Designs was established five year ago by Amita Patel and her friend, Yi Ling, after they both finished Art and Design courses. Orion Designs is run as a partnership between the two women. There are currently no other partners.

Amita and Yi create hand drawn designs in their studio which is located on an industrial estate. These designs are then sent to another business where a computer is used to put the designs onto transfers.

When Amita and Yi get these transfers back, they are put onto mugs and plates purchased from a separate pottery company.

Orion Designs then sells the finished mugs and plates as souvenirs.

Orion Designs has been making increased profits each year. Amita and Yi now want to expand the business. They could increase the range of items onto which they put the transfers (eg. Mousemats), or perform all of the production processes at Orion Designs.
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Amita and Yi are aware of the risks involved in expanding the business. Even though they have already invested their own money in the business, there may be a need for additional finance as well as more employees.

Actual Question:

Amita and Yi have recently had a meeting with a local business advisor about their plan for the expansion of Orion Designs.

They were given three possible options:

* Option 1- stay as they are;

* Option 2- take on additional partners

* Option 3 – turn the business into a private ...

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