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Transcription of this question: 5.Le Bon Chocolat (LBC)Le Bon Chocolat (LBC) owns a small chocolate factory located in Bayonne, a French city near theSpanish border. LBC is a family business founded in 1946 by Michel Lalanne, who operated it as asole trader. Since 1980, LBC has been a private limited company. All shareholders are membersof the Lalanne family.LBC manufactures most of its chocolates in a flow production process. Some special orders,however, are made through batch production (for example, sugar-free Christmas chocolates, oregg-shaped Easter chocolates).LBC employs a local accountant to prepare the company’s financial statements. The followingtable shows his calculations for last year:LBC Industry averageNet profit ma in (%)Current ratioAcid test (quick) ratioStock tumover (in days)161.80.824141.818LBC sells its chocolates directly to customers, through a well-known shop in the city centre.The accountant, however, recommends that LBC add a new channel of distribution. TheLalanne family is considering two options:(Option A) sell LBC chocolates in small independent shops in the region, through wholesalers.(Option B) sell LBC chocolates online, that is, business-to-customers (B2C) e-commerce.(a)(b)(c)(d)Identify two features of a private limited company.With reference to LBC and to other examples of your choice, compare flow productionand batch production.Interpret the financial calculations provided by LBC’s accountant in the table above.Recommend to the Lalanne family whether they should choose Option A or Option B.[2][5]

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