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Private Fitness Llc

In: Business and Management

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PRIVATE FITNESS, LLC

Background/Issues and Concern: • Acts of Kate with regards to the theft • Rosemary and Kate are long-time friend • Rosemary wanted to increase her standard of hiring by capitalizing on her reputation and knowledge in the growing fitness field and to have more time to spend with her two young children • Rosemary wants to protect her assets

Problem Statement: How should Rosemary address her prolem with regards to the situation with Kate as well as in protecting her assets?

Point of View: Rosemary Worth, the owner of the Private Fitness, LLC

Objectives: 1. to strengthen the controls of the business 2. to eliminate theft and any other kind of fraud which can harm the entity 3. to operate and earn revenues effectively and efficiently

Areas of Consideration: 1. The market of their business 2. The acts of Kate 3. The goal of Rosemary 4. Protection of assets 5. Rosemary’s situation

Alternative Courses of Action: 1. Fire Kate and hire one of the remaining instructors as a manager

Advantages: • Possible thief will be reduced • Kate can no longer steal from the business

Disadvantages: • Chance of Kate of proving that she can change and be a faithful employee would be lost • The new assigned instructor as manager might do the same

2. Fire Kate and hire a new person as a manager other than the instructors.

Advantages:

• The work may be organized since they focus primarily on their respective jobs • Savings from the decrease on salaries expense since Kate will be fired.

Disadvantages:

• It will be an additional cost • They will be a decrease of the providers since Kate will be fired. • Secure the inflow of revenue

3. Don’t fire Kate and strengthen the controls and hire a management Accountant.

Advantages:

• Possibility of fraud will be eliminated / reduced • Friendship will have a second chance • Assets can be protected

Disadvantages:

• Costly in terms of financial and in time.

Recommendation

We recommend that Rosemary would take the second alternative course of Action which is to fire Kate and hire a non- instructor to replace Kate’s position.

Plan of Action: • Fire Kate • Hire a non-instructor to replace Kate’s position • Implement rules and regulations to strengthen the controls of the business • Rosemary must monitor every single detail of every transactions • Proper designation of task

Submitted by: Carces Gonzales Ardee Mae Artiaga Michelle Rodriguez Honey Grace Galamiton

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