Reference no: EM132703797
Question - Dr. Elizabeth Mackenzie is a psychiatrist who has worked in a variety of government-funded mental health and addiction centres over her 22-year career. She has received numerous awards for her dedication to her patients and her innovative therapies, which are based on the role that she believes nature can play in recovery.
With clinical space in traditional hospitals and clinics shrinking, Dr. Mackenzie has been looking for locations with more square footage as well as green space. Unable to find what she and her patients needed, she decided to create the Mackenzie Wellness Centre (MWC), a custom-built treatment facility designed around her therapies. Patient care is of critical importance. However, because Dr. Mackenzie will be leaving her salary from the government-funded clinics, she needs MWC not only to be profitable (to fund her salary and the salaries of the staff as well as the operations) but also to grow in value. The eventual sale of the business will fund her retirement.
Dr. Mackenzie and her husband, Anthony, incorporated MWC on January 2, 2020, with the help of a lawyer. They are presently the only directors of the company, but the articles of incorporation require a minimum of seven and a maximum of 12 directors.
Dr. Mackenzie does not want to "run the business" of MWC as its CEO; she feels that she can best serve MWC as the senior VP of patient care. Anthony, an architect, will help design the building, but that is where his involvement will end. He has no interest in being an active member of the board of directors or management, which means MWC will need to hire a CEO, a CFO, and a senior VP of administration to look after HR, purchasing, and building maintenance.
MWC is being funded by the Mackenzies and external shareholders that wish to remain silent partners. In exchange for 50% of the financing, the external shareholders will own half the building and receive a dividend equal to 50% of the annual net profits.
The construction of MWC began on March 1, 2020. Shortly thereafter, Dr. Mackenzie realized that there was much more to running the clinic than just preparing for the arrival of patients. She reached out to you, CPA, on July 1 to help her decide how the organization should best be governed by a board and its management team so that it is profitable and has the highest ethical and clinical standards.
What role should Dr. Mackenzie hold at MWC and explain why?
Understand that habit based on the learning
: Define: How do you define or understand that habit based on the learning in this and other units so far.
|
What is the legal doctrine that may disallow your position
: If you decide that the items are not included in gross income, what is the legal doctrine that may disallow your position by the courts
|
What are alternative response strategies
: What are some alternative response strategies? It is important that a survey provide valuable results.
|
Define the scope of capstone project choice
: Define the scope of your capstone project choice. What are the anticipated activities of your project? What is your hypothesis or theory?
|
What role should Dr Mackenzie hold at MWC and explain why
: Dr. Mackenzie and her husband, Anthony, incorporated MWC on January 2, 2020, with the help of a lawyer. What role should Dr Mackenzie hold at MWC and explain
|
What are the effects of financial leverage
: What are the effects of financial leverage? Why risk of shareholders increases as the firm's financial leverage rises
|
Determine any gains or income that may be recognized
: Adam is contributing cash of $200,000, Determine any gains/losses or income that may be recognized incident to formation of ABCD Corp
|
Compare approach of townsmen to minnie wright
: Compare the approach of the townsmen to Minnie Wright to that of the townswomen who accompany the men on their search for evidence of the crime.
|
What is impact of decision on short-term operating profit
: ETU has made a firm offer of $35,000 for the hats, What is the impact of this decision on short-term operating profit, rounded to the nearest whole dollar
|