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Samantha Is an Architect, and She Is Also the Sole

question 5

Essay

Samantha is an architect, and she is also the sole shareholder of Sam's Gifts Inc. She wants to
semi-retire from the gift business soon and her three employees have all expressed great interest in taking over the company. They do not have the financial resources necessary to make the purchase at this point in time, however, Samantha is not in a hurry to receive the proceeds from the business as she will continue with her architectural work for another five years.
Samantha has heard about something called a 'share reorganization' and she has asked you to explain what it means and if it would apply to her situation.
Required:
A)Explain what a share reorganization is, and if it would be useful for Samantha in her plans to semi-retire from her gift store.
B)What is a significant risk factor that might be involved with a share reorganization?

Definitions:

Contingency Theory

A leadership theory that suggests the effectiveness of a leader is contingent upon how their leadership style matches the situation.

Leadership Ability

The capacity to guide, influence, or direct the behavior or opinions of others in a desired direction.

Situational Factors

External factors or circumstances that can affect an individual's behavior or the outcome of a decision or action in a specific context.

Von Hindenburg

Refers to Paul von Hindenburg, a German military officer and statesman who served as the President of Germany from 1925 until his death in 1934.