Doing Business Privately: Amy’s Ice Cream

Run Time: 10 minutes

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Learning Objectives

1. Distinguish among the types of corporations.

2. Consider the advantages and disadvantages of incorporation.

3. Understand the role that shareholders play in a privately-held corporation.

Overview

Amy’s Ice Cream, based in Austin, Texas, is a privately-held corporation formed in 1984 by Amy Miller and owned by Miller and a small group of family members and friends. At the outset, one of the most important decisions Miller faced was choosing an appropriate legal ownership structure for the new business. Fueled by the founder’s dedication to creating happy ice cream memories for customers, Amy’s has continued to evolve and grow. The company now operates 9 stores and rings up close to $3.5 million in annual sales. Applying for a job is an adventure in creativity, and Miller welcomes employees’ suggestions for new flavors and new promotions to keep sales growing.

What to Think About When Viewing This Video

1. How does Amy’s Ice Cream differ from a publicly held corporation?

2. What are some of the particular advantages of corporate ownership for a firm like Amy’s Ice Cream?

3. How well do you think Amy’s is working to ensure its continued survival and success? Looking ahead to future growth, what would you suggest to improve marketing, financial, or aspects of the operation?

4. What are some of the issues that Amy Miller may have to confront because her 22 investors are family members and friends?

5. Should Amy’s Ice Cream become a publicly held corporation?