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Case Study 1

Faye and Glenz own a small manufacturing business and are seeking advice on protecting assets and expanding their business. Recommendations include getting to know customers, valuing existing customers while seeking new opportunities, using social media for online sales, attending networking events, and giving back to the community. Suggestions for protecting assets include maintaining corporate records, using proper contracts, purchasing appropriate business insurance including umbrella insurance, placing some assets in a spouse's name, and titling a personal residence as "tenancy by the entirety" if allowed by state law.

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Jon Lester De Veyra
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271 views

Case Study 1

Faye and Glenz own a small manufacturing business and are seeking advice on protecting assets and expanding their business. Recommendations include getting to know customers, valuing existing customers while seeking new opportunities, using social media for online sales, attending networking events, and giving back to the community. Suggestions for protecting assets include maintaining corporate records, using proper contracts, purchasing appropriate business insurance including umbrella insurance, placing some assets in a spouse's name, and titling a personal residence as "tenancy by the entirety" if allowed by state law.

Uploaded by

Jon Lester De Veyra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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CASE STUDY NO.

FAYEGLENZ YEMAHAUS: TWO OF US

REACTION PAPER

Submitted by:
Jon Lester T. De Veyra

Submitted to:
Letecia Bartolome
III. Recommendation

Assets are items with economic value that can be converted to cash. You use
excess liquidity or surplus cash to buy an asset and store wealth until you resell the
asset. An asset can create income, reduce expenses, and store wealth. The assets of
Yema Haus now consist of a factory building, tools and equipment, a delivery van,
an automobile, furniture and office equipment. Ten laborers are working on part-
time basis, while six are on full-time basis. One is employed as an accounting
clerk. As we all know employees are the most valuable assets an organization has.
It's their abilities, knowledge, and experience that can't be replaced. Organizations
need to place emphasis and importance on the contribution that employees that
they have in order to propel themselves ahead. Also, business expansion is very
much important in business field. It means that you need to hire more people to
serve your customer. In this case study, Faye and Glenz are now awaiting some
advice on asset protection and business expansion.
The following are the possible suggestions or advice on how to protect and expand
their business. 1. Get to know your customers- Understand your customer's needs
and develop products and services that meet those needs. You can gain insight into
your customers by personalizing your services and encouraging them to provide
you with feedback.
2. Value existing customers and look for new opportunities- look for opportunities
to get more work and build your customer base. Make sure you find the right
balance between nurturing customers and finding new ones.
3. Use social media- in this time of pandemic, different social media platform is
very useful in terms of business such as online selling and such. Using social
media, you can promote, display and sell your product online. Through social
listening you can find out what customers are saying about you, gain insight into
their behavior and you will gain a lot of information what are the trends now in
social media.
4. Attend networking events- because of Covid 19 pandemic people are no longer
meet with a large group of people outside. Networking allows you to build
relationships with other people and encourage them to refer customers to you
through word of mouth.
5. Give back to your community- Building brand awareness in your local
community is a great way to attract new business. Consider sponsorship or
participating in a community event to raise your business profile.
The following are the suggestions on how to protect your assets:
1. Maintain your corporate veil- If you've set up an entity, don’t think that just
having the entity’s articles of incorporation in your drawer will save you when a
lawsuit comes. You need to maintain a separate bank account and check book for
your business; use the company name on all documents; title the property in the
name of the company if necessary; and, most important, maintain corporate records
and log the minutes at your annual meeting. Moreover, LLCs are not exempt from
performing this type of annual maintenance.
2. Use proper contracts and procedures- One of the easiest ways for creditors to
pierce the corporate veil and attack your personal assets is if you act negligently or
fraudulently. This can be avoided by having good lease agreements for your
rentals, placing property and equipment titles in the company name, having
subcontractor agreements and contracts on every project, not relying on emails for
terms in an important relationship, and never hiring people to work under the table.
3. Purchase appropriate business insurance- Insurance is an important part of your
business and should be included in your start up budget. Insurance gives you the
ability to take care of an incident in your business and gives plaintiffs another
target. Moreover, make sure you get the correct insurance policy. Owning a rental
property vs. a professional practice or retail store requires very different types of
insurance.
4. Obtain umbrella insurance- This type of insurance can be personal or business,
and it functions as an “umbrella” over any other type of insurance you may carry.
It costs an average of $300 to $500 a year for $1 million to $2 million in coverage.
That said, don’t assume you can throw caution to the wind because it will protect
you in every instance. As a rule, umbrella insurance won’t cover fraudulent,
criminal, reckless, or negligent action.
5. Place certain assets in your spouse’s name- If one spouse has a riskier
occupation or lifestyle, it can be extremely strategic to place assets in the other
spouse’s name. Generally, the creditors of one spouse cannot reach the separate
assets of the other. Therefore, asset protection in the context of marriage requires a
strategy whereby valuable assets are held as the separate property of the spouse
with the least exposure to risk. This is where a prenuptial or postnuptial marital
property agreement can be beneficial.
6. Look into tenancy by the entirety- If your state allows it, you can title your
personal residence as “tenancy by the entirety,” which means if one spouse is sued,
and the property cannot be attached or bifurcated by the lawsuit. The beauty of this
strategy is that it is also statutorily based, meaning you don’t have to pay big bucks
to implement or maintain the designation. Just make sure your property is titled
properly, and you can protect your home in this way if your state allows for such a
provision

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