subject
Business, 22.09.2021 15:50 lailalorinda

Bill Hudson was a real craftsman when it came to being a machinist. Bill had learned almost all that he knew from Hugo Huffman, his first and only employer. Bill Hudson was married and had three young children. He was 33 years old and had worked for Hugo ever since he finished his tour in the army. In 12 years Bill had polished his skills under the watchful and critical eye of Hugo Huffman. Hugo was quick to recognize Bill’s talent for the trade. Bill had a positive attitude about learning and displayed a drive for perfection that Hugo admired. Hugo’s Machine Shop was a successful small business. Its success was based mostly on the reputation for quality that had been established over its 42 years in operation. Hugh had come to this country with his new wife, Hilda, when he was in his late twenties. Now the business was a success, but Hugo remembered the early years when he and Hilda had to struggle. Hugo wanted the business to continue to produce the highest quality craftsman products possible. On a Friday evening, he called Bill into his office at closing time, poured him a cup of half-day-old coffee, and began to talk with him about the future. “Bill, Hilda and I are getting old and I want to retire. It’s been 42 years of fun but these old hands need a rest.  In short, Hilda and I would like you to buy the business.  We both feel  that your heart is in this craft and that you would always retain the quality that we have stood for.” Bill was taken back by the offer. He, of course, knew Hugo was getting older, but had no idea Hugo would retire. Bill and his wife, Anna, had only $4,200 in the bank. Most of Bill’s salary went for the normal costs of rearing three children.  Hugo knew Bill did not have the money to buy the business in cash, but he was willing to take a portion of the profits for the next 15 years and a modest initial investment from Bill. Bill had, for the past four years, made most of the technical decisions in the shop. Bill knew the customers and was well respected by the employees. He had never been involved in the business side of the operation. He was a high a school graduate but had never taken business courses. Bill was told by Hugo that even after deducting the percentage of the profits he would owe under the sales agreement, he would be able to almost double his annual earnings. Bill would have to take on all the business functions himself because Anna had no business training either. Questions 1.      Which entrepreneurial characteristics does Bill have that may be important to his success? Which characteristic could lead to his failure? 2.      What steps should Bill take to avoid the pitfalls common to a small business? 3.      If you were Hugo, would you sell Bill the business under the terms discussed in the case? Explain.​

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 02:30
Acompany using the perpetual inventory system purchased inventory worth $540,000 on account with credit terms of 2/15, n/45. defective inventory of $40,000 was returned 2 days later, and the accounts were appropriately adjusted. if the company paid the invoice 20 days later, the journal entry to record the payment would be
Answers: 1
question
Business, 22.06.2019 15:30
Uknow what i love about i ask a dumb question it is immediately answered but when i ask a real question it take like an hour to get answered
Answers: 2
question
Business, 22.06.2019 19:30
He moto hotel opened for business on may 1, 2017. here is its trial balance before adjustment on may 31. moto hotel trial balance may 31, 2017 debit credit cash $ 2,283 supplies 2,600 prepaid insurance 1,800 land 14,783 buildings 72,400 equipment 16,800 accounts payable $ 4,483 unearned rent revenue 3,300 mortgage payable 38,400 common stock 59,783 rent revenue 9,000 salaries and wages expense 3,000 utilities expense 800 advertising expense 500 $114,966 $114,966 other data: 1. insurance expires at the rate of $360 per month. 2. a count of supplies shows $1,050 of unused supplies on may 31. 3. (a) annual depreciation is $2,760 on the building. (b) annual depreciation is $2,160 on equipment. 4. the mortgage interest rate is 5%. (the mortgage was taken out on may 1.) 5. unearned rent of $2,580 has been earned. 6. salaries of $810 are accrued and unpaid at may 31
Answers: 2
question
Business, 23.06.2019 00:10
Many years ago, sprint telecommunications aired an advertisement intended to demonstrate the clarity of reception sprint customers could expect. the ad showed a rancher, who had used a different company, complaining that he had ordered 100 oxen from his supplier and instead received 100 dachshunds. the mix-up was probably due to the presence of in the communication process.
Answers: 3
You know the right answer?
Bill Hudson was a real craftsman when it came to being a machinist. Bill had learned almost all that...
Questions
question
Mathematics, 16.04.2020 20:51
question
Chemistry, 16.04.2020 20:51
question
Mathematics, 16.04.2020 20:51
question
Mathematics, 16.04.2020 20:52