Person M, person P, and person V want to enter into a franchise arrangement. According to them, it would help in upliftment of business and they would get support of experienced companies. To find: Person M, person P, and person V should consider the positive and negative aspects of franchising before committing themselves to a particular franchise.

Question

You have incorporated a business which a pack of Tommies now seeks to take over. You oppose this and also feel that the Tommies should use their "education" and start their own business instead of taking the easy way by trying to acquire your successful business. However, your shareholders have been offered a higher than market value for their shares by the aggressor. Briefly describe your duties and responsibilities as an officer/board member to your shareholders. 2 Based upon the price offered by the Tommie group, your shareholders appear to be in favor of this take-over. Identify and describe (6) methods that would enable you to effectively resist the take-over.

Answer 1

Question

Chapter 16, Problem 2BS

Summary Introduction

Case summary: Person M, person P, and person V want to enter into a franchise arrangement. According to them, it would help in upliftment of business and they would get support of experienced companies.

To find: Person M, person P, and person V should consider the positive and negative aspects of franchising before committing themselves to a particular franchise.

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