The entire staff assigned to work with Dave
The entire staff assigned to work with Dave (CLC Team) reassembles and are brought up-to-date by the tax partner. You learn that Dave has acquired controlling partner interest in OOSS’s second largest competitor, Deepwater Exploration, LLC, (DE) by purchasing $200 million of common stock using OOSS assets as collateral for a loan with First Trust Bank. After being appointed the new general manager of DE, he is considering merging OOSS and DE into a single company.
Dave requests advice on what is the best business structure and why as it relates to the compensation structure of DE and perhaps OOSS. He also wants to know the impact of different business forms of organization on the compensation of owners.
The staff team (CLC team) is now assigned the task of developing a recommendation summary of these issues and which is the best organizational structure to recommend for Dave and his companies. Dave indicated that even Diamond Discovery should be considered a part of his reorganization efforts.
Please refer to the assignment grading rubric at the assignment’s drop box for information regarding how the assignment will be graded. The CLC team is to prepare a two-page (double-spaced) report with the required information to be submitted by the end of Module 3.