Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 6.1, Problem 6.1BQ
Megan Gibson has always been a big fan of peanut butter, but it wasn’t until she sampled a spicy Haitian variety that she began experimenting with her own recipes. Rave reviews from family and friends inspired Gibson to sell her spreads at farmers’ markets and other events in her hometown of Philadelphia. She then used the profits from these sales to buy a food these sales to buy a food truck and start PB&Jams, a company that Gibson operates while also working full-time as a high school health teacher.
When you come up with a winning idea, stick with it. That’s certainly been the motto of 3M, the maker of Post-it Notes. The company encourages intrapreneurship among its employees by requiring them to devote at least 15 percent of their time to think about new products. How has this commitment to innovation paid off for 3M and its employee?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Please answer in 200 words or more.
Part 1: Your friend is considering opening their own business and has asked you for some advice. Please share your knowledge to help them build a successful business.
Part 2: Provide (two) advantages and (two) disadvantages for each of the following:
I. Sole Proprietorship
II. Partnership
III. Corporation
3. Lastly, identify which format your friend should select for their business. Be sure the answer refers to the specific product and or service industry and connects to the information you provided in Part II above.
Bill and Bob, both part-time entrepreneurs, were discussing their businesses over lunch one day. "I took
that auctioneering class and decided to try it out on a part time basis," Bill said. I wanted to perfect my
auctioneering skills and see how I felt about all the other stuff-the paper work, the advertising and
such. Maybe I wouldn't like it. Maybe I couldn't do it well. I really need to test myself first. Maybe I
can sign up for an accounting class or something before I really decide to do this full time."
Bob replied, "That wasn't so much my reasoning. Hey, I started a machine shop, because that's all I do
at my full time job; I know metalworking inside and out. I also ran my own business some time ago, so I
know how to keep books, how to advertise and all that. The reason I'm doing this part time is because I
can't afford to quit my "real" job. Do you know how expensive it is to by a lathe, even a used one? 1
need to really build my client base and I can't even consider quitting…
The Smith family has a very successful family tea shop that also provides wireless Internet access and live entertainment. They believe that there is a great deal of growth opportunity in such tea shops and plan to eventually expand. After meeting with their lawyers and accountants, they realize they need to change their business structure to either a corporation or a limited liability company. They understand that both have limited personal liability.
Using the information in your text regarding the advantages and disadvantages of each, make a recommendation as to which you would recommend to the Smiths. Provide at least three reasons for your recommendation. Be prepared to defend your point of view.
Chapter 6 Solutions
Understanding Business
Ch. 6.1 - Prob. 6.1AQCh. 6.1 - Megan Gibson has always been a big fan of peanut...Ch. 6.1 - Prob. 6.1CQCh. 6.1 - Prob. 6.1DQCh. 6.1 - Prob. 6.1EQCh. 6.1 - Prob. 1TPCh. 6.1 - Prob. 2TPCh. 6.1 - Prob. 3TPCh. 6.1 - Prob. 4TPCh. 6.2 - When Roni Di Lullas dog Midnight had trouble...
Ch. 6.3 - Prob. 1MEDCh. 6.4 - Prob. 6.4AQCh. 6.4 - Prob. 6.4BQCh. 6.4 - Prob. 5TPCh. 6.5 - Prob. 6.5AQCh. 6.5 - Prob. 6TPCh. 6.5 - Prob. 7TPCh. 6 - Prob. 1CECh. 6 - General repair service-paints, makes household...Ch. 6 - Prob. 3CECh. 6 - Prob. 4CECh. 6 - Prob. 1CTCh. 6 - Prob. 2CTCh. 6 - Prob. 3CTCh. 6 - Prob. 1DCSCh. 6 - Prob. 2DCSCh. 6 - Prob. 3DCSCh. 6 - Prob. 4DCSCh. 6 - Prob. 5DCSCh. 6 - Prob. 1PPTCh. 6 - Prob. 2PPTCh. 6 - Prob. 1VCCh. 6 - Prob. 2VCCh. 6 - Prob. 3VC
Additional Business Textbook Solutions
Find more solutions based on key concepts
10-10 What challenges do managers face in managing global teams? How should those challenges be handled?
Fundamentals of Management: Essential Concepts and Applications (9th Edition)
Describe and evaluate what Pfizer is doing with its PfizerWorks.
Management (14th Edition)
Much of risk management consists of reducing risky behavior. What kinds of risky behavior have you observed amo...
Understanding Business
10-10 What challenges do managers face in managing global teams? How should those challenges be handled?
Fundamentals of Management (10th Edition)
The Warm and Toasty Heating Oil Company used to deliver heating oil by sending trucks that printed out a ticket...
Essentials of MIS (12th Edition)
What Kinds of systems are illustrated in this case study? Where do they obtain their data? What do they do with...
Essentials of MIS (13th Edition)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, management and related others by exploring similar questions and additional content below.Similar questions
- The Smith family has a very successful family tea shop that also provides wireless Internet access and live entertainment. They believe that there is a great deal of growth opportunity in such tea shops and plan to eventually expand. After meeting with their lawyers and accountants, they realize they need to change their business structure to either a corporation or a limited liability company. They understand that both have limited personal liability. Using the information in your text regarding the advantages and disadvantages of each, make a recommendation as to which you would recommend to the Smiths. Provide at least three reasons for your recommendation. Be prepared to defend your point of view. I recommend that the Smiths form a ________________. corporation limited-liability company The rationale for your recommendation is as follows: (Explain your 3 reasons )arrow_forwardPart 1: Ben Floyd really enjoyed wood shop in high school, so he used an inheritance to buy some basic woodworking tools. He started out doing odds jobs, and then one day he made a porch swing for his house. Several people saw it and asked him to make one for them word of mouth brought him many customers. In June of 2008 he married Bobbie Ruth, marketing graduate. Bobbie Ruth saw a chance to expand the swing business to similar products and eventually have hardware, building supply and furniture stores. Thus BF Swing was born. Due to his love of his work and Bobbie Ruth’s marketing ability, the business prospered. Today, they make stools, rockers as well as swings. The company now employees about 35 people five days a week. Due to growth, they have some trouble. To avoid this, they have decided to hire someone who knows production planning systems to help them. After interviewing, they chose you to fill this position. They give you following information and wants to develop following…arrow_forwardAfter graduating from college, Nour had a career with an advertising agency. Later on, she moved to a large hospital system as a PR director. However, she became dissatisfied with the limitations that corporate hierarchies imposed. At the age of 25, she gave up a promising corporate career to launch her own public relations firm and an upscale children’s clothing boutique. Nour is considered as a(n) _______________. * leapfrogger necessity entrepreneur corporate castoff corporate dropoutarrow_forward
- Pick a business that you know of (can be a small business in your neighborhood or a large corporation that makes a product you bought in the past), do a little research about it, and answer the following: Describe the goods or services the business sells and where it does business. What kind of model is this company using? (remember, a company could use more than one model; use the models described in the introduction above). What type of business is this (sole proprietorship, partnership, or corporation)? How did you find out? Describe how you researched information about this company.arrow_forwardSienna wants to start a homeless shelter business to provide homeless people with food, clothes, etc. How can she help her business succeed?arrow_forwardJohnny and Ash have not yet incorporated their new company. However, each has already invested $50 000 into the business by depositing the money into Johnny’s business account. Johnny is negotiating the purchase of a small factory in his own name, and is purchasing the equipment and materials he will need to start manufacturing Organicola. Ash has also started spending 2 or 3 hours every evening writing a business plan and a marketing plan. (1) Have Johnny and Ash formed a partnership? If so, what are the legal consequences?arrow_forward
- Unlimited liability” is a disadvantage for Select one: a. Partnerships & sole proprietorships b. Mergers & acquisitions c. Incorporations d. cooperativesarrow_forwardZoey is the CEO of a corporation she organized herself, and the corporation has 15 shareholders. The company operates in several states, as well as outside of the U.S. Her business consists mostly of training services for in-home medical care personnel. Her company would be a __________ corporation. Subchapter S Closely-held Professionalarrow_forwardAli spent much of his childhood playing and working in his mother and aunts antique shop. His interest, involvement, and love of antiques led him to attend a school of art and design. Upon graduation, Ali decided to start his own antique shop and is in the process of completing his business plan.What are the questions that you would pose to Ali in order to help him select the form of ownership for his antique shop? What suggestion can you make to help Ali improve his business plan.arrow_forward
- Raised in Ireland, Patrick and John Collison were precocious, inquisitive youngsters who taught themselves computer coding at an early age. By the time they were teenagers, the brothers were developing iPhone apps and eventually became college dropouts after a few semesters at MIT (Patrick) and Harvard (John). During this time they started a company called Auctomatic Inc., which created an online marketplace management system for companies such as eBay, and then sold the company for $5 million in 2008. After selling the business, they continued to work on simplifying the payment process for startup businesses that use the internet to sell goods and services. As the internet entered its second decade and more and more entrepreneurs were using the web to do business, the Collisons recognized that the payment transaction process for online purchases needed an overhaul. In 2011, they opened their new company, Stripe, after testing their service and building relationships with banks,…arrow_forwardDescribe why and how your business will be successful. Give reasons for the success of the business. Assuming business of Coffee.arrow_forwardIf Red Ants Pants had investors looking for a quick return,how might that influence Calhoun’s decision to continuefunctioning as her own retail channel, rather than goingthrough established retailers?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Understanding BusinessManagementISBN:9781259929434Author:William NickelsPublisher:McGraw-Hill Education
Management (14th Edition)ManagementISBN:9780134527604Author:Stephen P. Robbins, Mary A. CoulterPublisher:PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract...ManagementISBN:9781305947412Author:Cliff RagsdalePublisher:Cengage Learning
Management Information Systems: Managing The Digi...ManagementISBN:9780135191798Author:Kenneth C. Laudon, Jane P. LaudonPublisher:PEARSON
Business Essentials (12th Edition) (What's New in...ManagementISBN:9780134728391Author:Ronald J. Ebert, Ricky W. GriffinPublisher:PEARSON
Fundamentals of Management (10th Edition)ManagementISBN:9780134237473Author:Stephen P. Robbins, Mary A. Coulter, David A. De CenzoPublisher:PEARSON
Understanding Business
Management
ISBN:9781259929434
Author:William Nickels
Publisher:McGraw-Hill Education
Management (14th Edition)
Management
ISBN:9780134527604
Author:Stephen P. Robbins, Mary A. Coulter
Publisher:PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract...
Management
ISBN:9781305947412
Author:Cliff Ragsdale
Publisher:Cengage Learning
Management Information Systems: Managing The Digi...
Management
ISBN:9780135191798
Author:Kenneth C. Laudon, Jane P. Laudon
Publisher:PEARSON
Business Essentials (12th Edition) (What's New in...
Management
ISBN:9780134728391
Author:Ronald J. Ebert, Ricky W. Griffin
Publisher:PEARSON
Fundamentals of Management (10th Edition)
Management
ISBN:9780134237473
Author:Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:PEARSON
Process selection and facility layout; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=wjxS79880MM;License: Standard YouTube License, CC-BY