UNDERSTANDING BUSINESS
12th Edition
ISBN: 9781264161881
Author: Nickels
Publisher: MCG
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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?
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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.
Part 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…
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…
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
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