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You run a small consulting business giving advice to people who are thinking
about starting up their own business. For a small fee, you offer your
customers advice on the best way of organizing a business. Your
business has been successful because you understand clearly the advantages
and disadvantages of various forms of business organization. You ask
what is most important to future business operators and compare their
interests with the benefits and costs of various types of business
organization. Read and discuss each client case. Then make a
recommendation about what form of business organization you think is best
for each. Be sure to state reasons to support your position.
Client 1
Client 2
Client 3
Client 4
Client 5
Client 1
I am 16 years old and I love little kids. I like to organize special
events - like birthday parties for children. I have decided that a
great way to earn extra money is to provide families with children's
birthday parties for a modest fee. I do it all- arrange the food,
supply the music, decorate the party room, play games, give away small
prizes, even play the part of Bongo, the Birthday Clown. Families I
know love the idea. I have an advertising plan figured out, with
posters to put up at the local grocery stores.
What type of business organization do you recommend? Why?
Client 2
I am 27 years old and have just finished law school and passed the state bar
examination. Now I am ready to begin my new career as a lawyer.
I am not interested in a job with a big firm. I'd like to be more on
my own. I have two friends who are in similar situations. But it
takes money to start a law practice. A modern law firm needs a lot of
business machines - computers, copiers, fax machines, and so on. Even
in a small firm the lawyers might need to hire some helpers - a
receptionist, maybe a paralegal worker. I want this firm to be a
success, but I am not sure I have all the legal and business skills I need
to pull it off.
Client 3
I am 35 years old and have been running three successful bookstores
for five years. My customers think I have the right mix of books to
appeal to younger and older readers. My "coffeehouse nights" which
feature authors reading passages of their books to espresso-drinking
customers have been a big hit. I am thinking about expanding to eight
stores. I have identified the new locations. They seem just
right. My two biggest problems are that I do not have enough money to
support this expansion and I am not sure I have the skill to manage all
eight locations.
What type of business organization do you recommend?
Why?
Client 4
My business partner and I are 25 and 26 years old. We run a small but
growing business. We buy auto parts made in Taiwan for American cars.
Then we sell the parts to auto repair shops in five cities in our state and
two cities in nearby states. We are now getting requests for our auto
parts from auto repair dealers in four new states. To meet these
requests, we will need a major expansion of our warehouse and we will need
to hire some new employees.
What type of business organization do you recommend?
Why?
Client 5
I am a 45-year-old agricultural scientist. I have been working for
years to come up with a natural egg that is free of cholesterol and low in
fat. I finally have completed all the tests and have received all the
government approvals I need for my new eggs. Up until now, my work has
been simple and I have been my own boss. But now I want to launch my
new product - Eggs You Can Love - on a national scale.
What type of business organization do you recommend?
Why? |
