The new contract with the fast-food chain creates some problems for Fama's French. Production facilities will have to be expanded to meet the new demand. Both the existing facilities have sufficient area to expand, but the State of Ohio is offering additional tax benefits if Fama's French builds a new facility in a "Brownfield Rejuvenation District" located next to the Cuyahoga River in Cleveland, Ohio. The "District" is an area where industrial production facilities were formerly located. Some usable structures exist in the district, but many of the former facilities have been torn down, leaving open space for construction. In addition, the new contract contains a "liquidated damages" provision. This provision contains a schedule of monetary penalties Fama's French will have to pay should the company fail to meet the production output required by the contract. If for any reason, Fama's French fails to provide the quantity and quality of baked goods specified in the contract, the bakery will have to pay a specific dollar amount to the fast-food chain. Finally, the new contract has made several of the partners reconsider their relationship with the business. What started as a small operation has become a very large and complex business. Some of the partners no longer wish to expend the personal time and resources required by the business. It is expected that these partners will ask that their ownership interest in the business be "bought out" by the other partners.
By nearly all accounts, Fama's French Bakery and Sharpe-Lintner trucking are good places to work. The "hands on approach" of the partners seems to have everyone well focused on operating efficiently and safely. There are very few reported accidents or injuries among the workforce. Since the operations are highly automated, there are only 60 employees on the Bakery side of the business and 50 employees in the trucking company. Since there are so few reported accidents and injuries, the partners have never been able to see any type of consistency or pattern in the incidents. One weakness of management, perhaps due to the low number of incidents, is that there is uncertainty as to exactly what types of insurance coverages are currently in place for all portions of the business. Management is certain that all mandatory coverage obligations are being met, but the identity of the insurers, coverages and policy limits are not readily known.
Instructions:
Prepare a report to provide Fama's French Bakery with the following:
1. An analysis/ identification of the risks to which the business is exposed;
2. Choices available to manage those risks;
3. The pros and cons of the choices;
4. Your recommended choice;
5. A reasoned explanation for your choice.
作业要求：该报告必须有电子版，格式为双倍行距，字体为10-12。该报告打印版必须2012年12月6日（星期四）下午3:00或之前提交老师。迟交或只有电子版将没有成绩。
