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11.8: Case Questions

  • Page ID
    62827
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    1. The Big University football team, a member of the Southeastern Conference (SEC), brings in over $100 million a year in revenue, including TV rights, ticket sales, and bowl games. Seats to a game cost well over $100, and coaches are paid millions of dollars (more than anyone else at Big U, including the president). However, despite enormous revenues, universities and their football teams are considered not-for-profit organizations and pay no taxes on the $100+ million their football programs bring in. Should a university football program be allowed to exist as a not-for-profit organization?
    2. Jen started a new sustainability-oriented business six years ago, making single-serve coffee pods out of recyclable paper, rather than plastic. Her company, Jen’s Pod, is now experiencing rapid growth. Jen started her company as an LLC but has been considering making a decision to incorporate. What are some of the advantages of changing to a C corporation?

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