Management, Loose-Leaf Version
13th Edition
ISBN: 9781305969308
Author: Richard L. Daft
Publisher: South-Western College Pub
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Question
Chapter 6, Problem 2CFCA
Summary Introduction
Case summary:
This case about two friends from work, who are running their own business in
Characters in the case:
Jeremy Black, Kevin Jack, Jenny and Susan are the business partners and their wives. Coach Ed Morgan is the Coach and other character in the case.
Adequate information:
Jeremy and Kevin were co-workers, turned friends who like antique furniture. Their business was doing well with Jeremy handling the restoration and Kevin handling the antiques part. Jeremy was in personal debt.
To determine:
The risks involved in starting a business with a partner. Also determine the ways in which the risks can be minimized.
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Students have asked these similar questions
Your Uncle Craig and Aunt Carol want more out of life. Craig works as an inspector for the city health department, which involves inspecting restaurants and food service establishments to see whether they are operating according to local laws. Carol worked as an insurance agent for the first 10 years of their marriage and is now a stay-at-home mom. Their home is paid for and their son, your cousin, Charles, is a senior in high school. Neither Craig nor Carol has much experience in owning or operating a small business, yet this is what they want to do when their son graduates from high school. They have been frugal and have saved over $200,000 for this venture. Craig will not be quitting his job for a while. This will leave Carol with the responsibility of running the business.
For the scenario above, answer the following questions:
Which business structure should they adopt for their new business?
Explain your answer and state the costs and benefits of your advice.
Auva and Chad knew that they wanted more out of life. Auva works as an inspector for the city health department, which involves inspecting restaurants and food service establishments to see whether they are operating according to local laws. Chad worked as an insurance agent for the first 10 years of their marriage and stays at home even though their kids are old enough to take car of themselves. Their home is paid for and their oldest daughter has received a scholarship to attend their local state university. Their son, Chester, is a senior in high school. Neither Auva nor Chad has much experience in owning or operating a small business, yet this is what they want to do when their son graduates from high school. They have been frugal and have saved over $200,000 for this venture. Auva will not be quitting her job for a while. This will leave Chad with the responsibility of running the business. What type of business to start and why?
Background
Allan and Dorraine have been happily married for just over ten (10) years. They met
twelve (12) years ago at a textile factory in Westmoreland, where they both started
work after leaving school. The textile factory was the biggest employer in the area.
During these years they saved hard and finally bought their dream house-a four-
bedroom detached traditional bungalow. The house needed upgrading, so the couple
managed to get it at a bargain price. They put down a good deposit and took a
mortgage for $9,000,000. They were looking forward to renovating the house over
time:
The present situation
The textile trade was the main industry in the Western region. In the past few years,
however, factors such as high prices for cotton and declining orders from Japan and
America have led to short-time working and some redundancies within the industry.
Last year Allan and Dorraine were both made redundant at the same time. Faced with
the prospect of moving away to find work or being…
Chapter 6 Solutions
Management, Loose-Leaf Version
Ch. 6 - Prob. 1OTJVCCh. 6 - Prob. 2OTJVCCh. 6 - Prob. 3OTJVCCh. 6 - Prob. 1DQCh. 6 - Prob. 2DQCh. 6 - Prob. 3DQCh. 6 - Prob. 4DQCh. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - Prob. 7DQ
Ch. 6 - Prob. 8DQCh. 6 - Prob. 9DQCh. 6 - Prob. 10DQCh. 6 - Prob. 1EECh. 6 - Prob. 2EECh. 6 - Prob. 3EECh. 6 - Prob. 4EECh. 6 - Prob. 5EECh. 6 - Prob. 6EECh. 6 - Prob. 7EECh. 6 - Prob. 8EECh. 6 - Prob. 9EECh. 6 - Prob. 10EECh. 6 - Prob. 11EECh. 6 - Prob. 12EECh. 6 - Prob. 13EECh. 6 - Prob. 14EECh. 6 - Prob. 15EECh. 6 - Prob. 1SGBCh. 6 - Prob. 1EDCh. 6 - Prob. 2EDCh. 6 - Prob. 3EDCh. 6 - Prob. 1CFCACh. 6 - Prob. 2CFCACh. 6 - Prob. 3CFCA
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