descriptions. Also, the firm will also benefit from the good supplier relationships that Java Culture had with its suppliers thus they will be able to continue getting the suppliers at similar costs. This ensures that the costs that the firm incurs are reduced further in the organization (Ferrell & Hartline, 2011). Moreover, it would be easier to be able to access financing from the banking institutions as Java Culture already has assets and a track record of earnings; a feature that the new business will not be able to enjoy. The other benefit that the arrangement will bring is that of the existing premises as we will not have to negotiate with owners about new sites that the firm can be able to locate (Longenecker, Petty & Palich, 2012). However, concerted efforts should be undertaken by the firm to ensure that the different responsibilities of the business in relation to the premise as contained in the lease are easy to understand and are clear to the firm for instance the service charges, the rent, dilapidations and other charges that are contained in the lease agreements.

In addition to the above advantages that the firm will be able to reap from the acquisition of Java Culture, there are a host of other benefits that will also be enjoyed by the firm. they include the benefits of stock thus the firm will be able to meet its short near-term requirements and thus the firm will be able to negotiate an attractive price of the stock from Java Culture. This is due to the fact that the firm will be the buyer of the different products that are offered by the firm (Longenecker, Petty & Palich, 2012). The other benefit of the acquisition of Java Culture would be the acquisition of the vehicles and the equipments that are used in the business operations of the firm.

The most appropriate ownership form that will be adopted by the firm is partnership. There are three partners who have come up to operate the business that will be acquired from Java Culture. The three partners will engage in the management as well as the operations of the business. The losses and the profits that will be realized from the business operations will be shared between the partners. The main reason why the ownership structure is adopted is because the firm will be able to raise the requisite finances through the partners and also it will not be affected by a number