The First Nation Band operates an industrial park, an area of land developed as a...
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Accounting
The First Nation Band operates an industrial park, an area of land developed as a site location for factories and other industrial businesses. The businesses pay rent to the First Nation Band to operate from their industrial park location. One of the tenants operates a sawmill that process wood to be used in furniture. The business has operated for 10 years, however, for the last 4 years, operations have failed to produce net income after all expenses and dividends. The single owner has fallen behind on rent payments to the Industrial Park and unfortunately has recently filed for bankruptcy. The business employs 30 people from the First Nation Community.
The employees have approached the Band office through their economic development department as they wish to purchase the sawmill and operate the mill as an employee owned business. To make this happen, the economic development department of the First Nation Band would need to provide a $1 million loan that would be fully repayable.
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