Explain whether the Richards family should form a regular corporation or choose one of the hybrid forms.

Review the “Richardses’ Tree Farm Grows Up – Mini Case” located in Chapter 1 of Financial Management: Core Concepts.

Develop a 1,050-word analysis of the case study.

Include the following:

  • Analyze whether the major financial management decisions of the Richards family involve capital budgeting, capital structure, and working capital management.
  • Explain whether the Richards family should form a regular corporation or choose one of the hybrid forms.
  • Explain how incorporating will affect the Richards family’s ability to transfer ownership to their children.
  • Justify Jake’s concerns with hiring professional management.
  • Analyze whether incorporating will affect the Richards family’s ability to give up a small amount of profit in exchange for protecting the environment.
  • Evaluate how Jake might obtain more equity funding and perhaps create considerable wealth for the Richards family in the process.