to prepare a memorandum
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You are a new associate at a CPA firm. Your boss has explained that a new client has come to the firm with a small but growing company that makes a granite cleaning product which is sold in several major retail stores. The client has been operating as a sole proprietorship, but now thinks that because of the growth of the company a different business entity might be advantageous. The client has also informed you that they have recently encountered a problem with their distributor. When the product arrived at the distributor’s location, the distributor rejected the product, saying that they have received complaints from consumers that the spray bottles did not work correctly. The distributor further stated that the bottles sprayed the product in a dangerous way that caused injury to several consumers.
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