EBK MANAGEMENT
12th Edition
ISBN: 8220100546563
Author: DAFT
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
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.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
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?
Bonnie Brewer and Stacy Kim were college roommates. While at school, they shared dreams of opening their own business. To prepare themselves, they took business and marketing courses, along with courses in management. When they graduated, they each found jobs in Seattle, near where they’d gone to school.
Several years later, after working at other companies to gain experience, the two women decided to take the plunge together and made a plan to open a small café where they and their customers could indulge their love of good coffee and fine chocolate. They looked at two locations for their café: one near Pike Place Market, which gets a lot of foot traffic from shoppers and businesspeople, and one near the university, where shops and restaurants are patronized by students, faculty, staff, and local residents. They chose the university location because they thought they knew and understood those customers well. The doors to Custom Coffee & Chocolate opened several months later, with…
Chapter 6 Solutions
EBK MANAGEMENT
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
Knowledge Booster
Similar questions
- You are the proud owner of a beautiful blue Coupe built by the General Autos Corporation, a car you purchased new in late 2010. This little 2 door car has been very good to you, owing in part to your meticulous care and maintenance. Although you had no intention of parting with this vehicle, a friend who manage is a “Tech Town” store has offered you a great “ side hustle.” Tech Town is an upscale computing store known for its service and customer care. Your friend has offered to pay you $150 for each customer “setup” that you perform. This involves delivering and hooking up computer systems and linking various smart gadgets. Each setup requires just two to three hours work, and you could do two or three setups per week. The catch is that you need a vehicle with capacity to carry tools and occasionally large boxes. Your car is way too small, so you've decided to sell and purchase an SUV or light truck. The sooner you can sell your car, the sooner you can buy a new…arrow_forwardKhalil quit his job as an investment banker to start Assi Rafts, a canoe and kayak rental business in Bekaa. Khalil was tired of the corporate life and was ready for a change. He bought a land, built his facility, and bought canoes, kayaks, trailers, and vans. He did no market research such as talking to potential customers before investing in the business. In the seven years the business operated, it never reached even half the revenues it needed to be successful. In the end, he closed the business after spending all his and his parents' savings. What function would a business plan play in Khalil's case? * Enhance his creativity Strengthen his research skills Attract lenders and investors he was in desperate need for to launch his business Serve as his road map on the O journey toward building a successful businessarrow_forwardWhat personal characteristics and values will Jack need to continue running his business while also attending school full-time?arrow_forward
- Mr. Imran and Mr. Salim are business partners. They often argue and disagree with each other when it comes to handling their business. Continuous conflict and differences in opinions among owners in a business could lead to which of the following? Business might become diversified Business might merge with another company Business might not continue Business might have more profitsarrow_forwardExplain the four types of Preneurs and Give two example each; > Intrapreneurs > Solopreneurs > Entrepreneurs > Investorpreneursarrow_forwardYou are a former certified education administrator who departed your former position to become the owner of a small, in-home day care consisting of you and a part-time assistant where you care for children from age three (3) to age ten (10). Over the course of time, your demographic population has increased due to significant business growth that has resulted in many families relocating to your area. With more businesses projected to move to the area and the building of new housing developments, it is projected that this growth could be long term. You have decided that this is a good opportunity to expand your day care business as you have received many inquiries for childcare. In order to comply with your home state regulations, you will require a larger facility and will need to hire additional staff in order to sustain the larger demand for day care. This staff will consist of five (5) Certified Day Care Professionals, one (1) Registered Nurse Professional, five (5) After-School…arrow_forward
- You are a former certified education administrator who departed your former position to become the owner of a small, in-home day care consisting of you and a part-time assistant where you care for children from age three (3) to age ten (10). Over the course of time, your demographic population has increased due to significant business growth that has resulted in many families relocating to your area. With more businesses projected to move to the area and the building of new housing developments, it is projected that this growth could be long term. You have decided that this is a good opportunity to expand your day care business as you have received many inquiries for childcare. In order to comply with your home state regulations, you will require a larger facility and will need to hire additional staff in order to sustain the larger demand for day care. This staff will consist of five (5) Certified Day Care Professionals, one (1) Registered Nurse Professional, five (5) After-School…arrow_forwardDescribe the difference between strong-tie and weak-tie relationships. Is it more likely that an entrepreneur will get new ideas through strong-tie or weak-tie relationships? Why? Give an example of a strong-tie and a weak-tie.arrow_forwardmpany History and Profile Both Ito-Yokado and Seven-Eleven Japan were founded by Mr. Masatoshi Ito. He started his retail empire after the Second World War when he joined his mother and elder brother and began work in a small clothing store in Tokyo. By 1960, he was in sole control and the single store had grown into a $3 million company. After a trip to the United States in 1961, Ito became convinced that superstores were the wave of the future. At that time, Japan was still dominated by Mom- and-Pop stores. Ito’s chain of superstores in the Tokyo area was instantly popular and soon constituted the core of Ito-Yokado’s retail operations. In 1972, Ito first approached the Southland Corporation about the possibility of opening Seven-Eleven convenience stores in Japan. After rejecting his initial request, Southland agreed in 1973 to a licensing agreement. In exchange for 0.6 percent of total sales, Southland gave Ito exclusive rights throughout Japan. In May 1974, the first Seven-Eleven…arrow_forward
- Roxanne Quimby met Burt Shavitz at his roadside honey stand in Maine. Twenty years later, a multimillion-dollar business is thriving. That business is Burt's Bees, the top all-natural, earth-friendly manufacturer of personal care products. Small businesses are found in nearly every industry, but retailing and wholesaling, manufacturing, and high technology are especially attractive to entrepreneurs because they are relatively easy to enter and require low initial financing. Small-business owners also find it easier to focus on a specific group of consumers in these fields than in others, and new firms in these industries suffer less from heavy competition, at least in the early stages, than do established firms. Read the case and answer the questions that follow. Part I: In 1984, Roxanne Quimby was on her way to her waitressing job when she decided to stop at a roadside stand to buy some honey from beekeeper Burt Shavitz. She soon joined forces with Shavitz, and they began marketing…arrow_forwardEntrepreneurs are able to identify opportunities even in adverse and difficult situations. To which one of the following important personal characteristics of an entrepreneur does this statement refer? a. Involvement in the business b. Positive attitude and approach c. Commitment to the business d. Perseverancearrow_forwardYou and three of your close friends have discussed plans to open a pizza restaurant with a delivery service. You intend to attract to your business young professionals who live and work near the downtown area and who are healthy and fitness-minded. You and your co-owners agree that each will invest equally in terms of time and money. However, in addition to contributions and "sweat-equity" made by each of you, another $400,000 is essential for the restaurant to succeed. 1. What type of organization is best suited for this business activity? 2. What steps would you take to manage the restaurant during times that you and your co-owners are not present? 3. What liabilities do you and your co-owners face?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Management, Loose-Leaf VersionManagementISBN:9781305969308Author:Richard L. DaftPublisher:South-Western College Pub
MarketingMarketingISBN:9780357033791Author:Pride, William MPublisher:South Western Educational Publishing
Management, Loose-Leaf Version
Management
ISBN:9781305969308
Author:Richard L. Daft
Publisher:South-Western College Pub
Marketing
Marketing
ISBN:9780357033791
Author:Pride, William M
Publisher:South Western Educational Publishing