Please read the following hypothetical case, then address each of the following issues in a separate paragraph or two, with each response identified by the corresponding letter of the issue you are addressing. Your responses should reflect issues you have studied in the unit chapters, and must be your own work. If you do incorporate other sources, be sure to clearly identify them as such. Please DO NOT include the questions; just number your responses appropriately. All submissions are expected to be college level work, with appropriate spelling, grammar, formatting, etc., and must be submitted in .doc or .dox format.

Eddy has the world’s best recipes for Chili and Hot Dogs, and at the urging of family and friends, is finally opening his restaurant, “Fast Eddy’s”. He has ample personal resources from his fortune earned as a stock trader, so finance is not a concern. He does however, have limited experience as a business operator, and has some decisions to make. Please address the following questions to help him make his choices.


  1. Given the fact that he will be opening a restaurant and knowing a little about his personal situation, what legal form of ownership would you recommend he use? Please give your rationale for your recommendation, including any possible downsides to the form.
  2. He anticipates being open for lunch and dinner, with both eat in and take out options available, 6 days a week. Initially, he plans to hire approx. 25 employees. What formal organizational structure would you recommend he use? Provide a simple organizational chart and explain the pros and cons of this choice.
  3. Eddy wants to have happy employees, as he believes that will result in better performance. Please make one specific suggestion for a motivating technique he could employ, and explain what motivational theory it relates to.
  4. The idea of franchising his idea has crossed his mind. If he were to take that step, what issues, positive and negative, would you anticipate him encountering in the early years of his operation?