Premium Essay

The Management Decision That Was Made

In: Business and Management

Submitted By Sawdawg
Words 563
Pages 3
Abstract
After reading the requirements of this assignment I was lost. I had read chapters 1-4, also did my intellipath. But I’m not really sure if I have it figured out now. I believe I need to chose what path is best for the business but also have to keep the wife happy. Not always an easy thing but it is doable. A partnership would be the answer to the situation. A partnership allows multiple advantages which I hope to explore further.

The Management Decision that was made I felt that after looking over the different business categories, Sole Proprietorship, Partnership, and Corporation. Let’s look at Sole Proprietorship; this is how a lot of large business started out. McDonalds started out in 1937 as a food stand selling hamburgers for about $.10 and bottomless orange drink. The idea was expanded into a multi-billion dollar business. This kind of small business can go big and make it or they can fold up and disappear. There is a small start up cost. The taxes are included in the owner’s personal taxes and easier to control the business.
A Partnership is what my Uncle Wayne had when he started his cleaning service. Three people joined together and contributed to the business with funds and experience. After being business for a couple years Wayne bought out one of his partners changing the business dynamics. Even though he still had a partner Larry became a limited partner and after a few years Wayne bought him out as while. Now Uncle Wayne owns and runs Delta Cleaning Services Inc. so he when from partnership to sole proprietorships.
A partnership has advantages, the start-up and legal fees are very small that is why I feel that this is the answer for the scenario. As a partnership they can pool a larger source of funds. The down fall is if one of the partners in the partnership wants out the other has to buy them out and if they don’t have the…...

Similar Documents

Premium Essay

Channel Management Decision

...·       Analyze the effect of channel management decisions on the marketing of your selected product or service. LaToya ·       Select appropriate distribution channels for your product or service and address costs in terms of placement, shipping, and middlemen. LaToya Channel Management Decision: The channel management decision has a huge effect on the marketing of our new home pick up service. What is channel management? According to the web channel management is “The process by which a producer or supplier directs marketing activity by involving and motivating parties comprising its channel of distribution.” (www.businessdictionary.com) The channel of distribution is when goods or services flow from the vendor to the customer. Therefore, channel management decisions are needed to insure this process does not get interrupted. For example, the United Parcel Service (UPS) is a competitor that offers their customers the same home pick up service, so it is imperative that we manage our channels of distribution effectively. The main advantage of effective channel management decisions is it ensures that we keep an edge on the competitors and gain more customers in all markets. Appropriate Distribution Channels In the Parcel market there are various distribution channels we can utilize. There are four types of distribution channels: producer-customer, producer-retailer-customer, producer-wholesaler-retailer-customer, and producer-agent-wholesaler-retailer-customer. ...

Words: 304 - Pages: 2

Premium Essay

Financial Management Decision

...Introduction Making financial decisions involves balancing risks and profitability. Financial management is the operative way for a firm to organize and control financial resources of a firm in order to exploit profitability and ensure liquidity for a company. The three types of financial management decisions are capital budgeting, capital structure, and working capital management. It is important that the decisions being made in regards to financial management be concise, educated, and understandable. This paper addresses the three types of financial management decisions which guide companies in the direction for success, and will point out a few possible ethical problems company’s may face in their quest for that success. Part 1: Capital Budgeting Capital budgeting is the process of planning and managing a firm's long-term investments.   “Evaluating the size, timing, and risk of future cash flows is the essence of capital budgeting” (Ross, Westerfield, Jordan, 2007, p. 5). The size, timing, and risk of future cash flows are the most important things to consider with capital budgeting. Formal methods that are used in capital budgeting include profitability index, valuation of future cash flows, and net present value. Profitability index is the present value of an investment’s future cash flows divided by its initial cost, also known as benefit-cost ratio. The index measures the value of each dollar invested in the company and is rationed from the......

Words: 2760 - Pages: 12

Premium Essay

I Do Not Believe That Merck Made a Socially Responsible Decision When Vioxx Was Introduced Into the Pharmaceutical Market.

...I do not believe that Merck made a socially responsible decision when Vioxx was introduced into the pharmaceutical market. Scientists that were involved in product development and testing knew that there were serious health risks that could be side effects of the medication- such as cardiovascular complications. If they considered the lives that could have potentially been and as we know now were affected, the medication could have been revamped with changes that would minimize these harmful side effects. During the development and testing phase for Vioxx – issues regarding the safety of the drug were questioned due to the many cases of heart attacks resulting from the medication (more so than Aleve and Celebrex). The advertising technique that was used was thru direct-to-consumer. This was new in the pharmaceutical industry as it was the first time they were allowed to advertise to consumers. They used an Olympic figure skater as the primary character within their commercials. Consumers then would request this medication, making doctors feel obliged to prescribe. The government and policymakers received large sums of money from the development company during the advertising phase and market introduction. When studies became public of Vioxx users being twice as susceptible to heart attacks, Dr. Kim recommended recalling the drugs due to the elevated risks for users as well as the lack of knowledge as to what was causing the heart attacks. There were mixed emotions for some......

Words: 260 - Pages: 2

Premium Essay

Analyzing Management Decisions

...Marilyn Gardner Managerial Economics Saint Leo University August 17, 2014 Analyzing Managerial Decisions Compensation plans are plans that are put into place to offer incentives to employees to keep them motivated while maintaining a low turnover rate (Brickley). However, many organizations go about this differently, and offer many different kinds of compensation plans. Organizations use their goals to determine the best way to motivate their employees and keep them employed. Organizations use trial and error in identifying the ways to do this. Parkleigh’s organizational theory leads one to believe that sales are the most important, therefore they will offer incentives that promote sales (Brickley). Ways to do this would include great customer service, with staff that are observant, nice, and outgoing. If the staff do what they are supposed to do, then the sales will reflect the relationship between the staff and the customers. Another way to show an increase in incentives throughout the levels of the coorporation is by delegating tasks based on the amount of time being employed with the company (Brickley). For example, new employees may be required to do more cleaning and “grunt work.” However, this work is still important, because making the company visually appealing (clean and tidy) will attract more customers and customer of higher prestige (Brickley). Employers could also offer discounts to employees. Just because an employee may work for a certain company,...

Words: 486 - Pages: 2

Premium Essay

Discuss Why Capital Budgeting Decisions Are the Most Important Decisions Made by a Company.

...budgeting investments involve long term investments, once the decision is made it cannot be easily reversed without incurring considerable costs. The decisions help management to systematically analyse potential business opportunities in order to decide which are worth undertaking. Capital budgeting allows a company to control and influence its long-term economic stability and financial profitability, with the goal of maximising shareholder wealth. Often business’s will incur capital rationing, which implies that funding needs exceed funding resources and thus, the available capital will be allocated to the projects that will benefit the company and its shareholders the most. Capital budgeting concerns the investment decision and the financing decision, and is therefore one of the most challenging decisions made by management. Capital budgeting involves the investment of resources into proposed projects, the knowledge of the risks and returns of each project are imperative in making a decision on which project to invest in. In order for the company to survive, it must be able to measure the effectiveness and profitability of each possible investment project. Making capital budgeting decisions is critical to the finance of the company; once a decision is made to invest in a project, the company has agreed to make a financial commitment. The company is making an investment in its future, and if the incorrect decision is made to commit a large amount of funds for an......

Words: 330 - Pages: 2

Premium Essay

Are Leaders Born or Made Management Essays

...Are Leaders Born Or Made Management Essay Introduction: Leadership is a process by which individuals influence employees toward the achievement of organizational objectives (Dubrin, 2009). Leadership is probably the most frequent researched subject in the organization sciences. Many studies of leadership have been published and many leadership articles have been written in business-oriented publications and academic journals and books. Leadership has been researched in various different ways, depending on the methodological preferences of the researcher leadership definition (Achua, 2009). Most scholars deal only with leadership’s one narrow aspect, and as a result, most of the studies fall into distinct lines of research which include leader traits, behaviour, power and influence, and situational approaches. Literature Analysis: Are leaders born or made? This question has always dominated and still continues to dominate the leadership study (Dubrin, 2009). Although many research papers have been written, little to no conclusive evidence can be researched; the leadership topic remains elusive (Achua, 2009). However, with fifty years or more of study, some of the contributing factors or origins of leadership have become clearer. While no predictive model exists, scholars know what leads to leadership. One difficulty in discussing the leadership is its definition. Burt Nanus and Warren Bennis (Torrington and Hall, 2008) report ore that three hundred definitions of......

Words: 1486 - Pages: 6

Premium Essay

Channel Management Decision

...Marketing Channel Management – Important Issues Marketing Management Revision Article Series Most manufacturers of products use marketing intermediaries to sell their products to the consumers. The marketing intermediaries make up a marketing channel (distribution channel or a trade channel). The marketing channel overcomes the time, place, and possession gaps that separate gods and services from those who need or want them. Marketing Intermediaries and Their Functions Most manufacturers of products use marketing intermediaries to sell their products to the consumers. The marketing intermediaries make up a marketing channel (distribution channel or a trade channel). Stern and El-Ansary define: “Marketing channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption.” The marketing channel overcomes the time, place, and possession gaps that separate gods and services from those who need or want them. Some of the functions that channel members perform are: Information Promotion Negotiation Ordering Financing Risk taking Physical possession Payment Title Channel Levels A zero level channel is direct marketing between producer and consumer. In one level channel a retailer is between producer and consumer. Two level channels have wholesaler and retailer. Still longer channels also exist in some industries. Channel design decisions involve analyzing......

Words: 377 - Pages: 2

Premium Essay

Pricing Decisions and Cost Management

...CHAPTER 12 PRICING DECISIONS AND COST MANAGEMENT 12-1 The three major influences on pricing decisions are 1. Customers 2. Competitors 3. Costs 12-2 Not necessarily. For a one-time-only special order, the relevant costs are only those costs that will change as a result of accepting the order. In this case, full product costs will rarely be relevant. It is more likely that full product costs will be relevant costs for long-run pricing decisions. 12-3 Two examples of pricing decisions with a short-run focus: 1. Pricing for a one-time-only special order with no long-term implications. 2. Adjusting product mix and volume in a competitive market. 12-4 Activity-based costing helps managers in pricing decisions in two ways. 1. It gives managers more accurate product-cost information for making pricing decisions. 2. It helps managers to manage costs during value engineering by identifying the cost impact of eliminating, reducing, or changing various activities. 12-5 Two alternative starting points for long-run pricing decisions are 1. Market-based pricing, an important form of which is target pricing. The market-based approach asks, “Given what our customers want and how our competitors will react to what we do, what price should we charge?” 2. Cost-based pricing which asks, “What does it cost us to make this product and, hence, what price should we charge that will recoup our costs and achieve a target return on investment?” 12-6 A target cost per unit is......

Words: 8010 - Pages: 33

Premium Essay

Strategic Project Management Made Simple

... Strategic Project Management Made Simple Name Institution Strategic project Management Made Simple According to (Williams, 2009), a strategy is a plan of how to achieve formulated goals. It enables an organization to achieve its vision and its objectives. Strategic planning process determines the path that an organization will follow to meet its goals (Kerzner, 2001). In this paper, my aim is to summarize a review on strategic project management. The report talks about the logical steps of strategic project management process. I agree with the review that strategic management is a critical determinant of the success of an organization. The logical framework primarily involves strategic planning, systems thinking, management by objectives and total quality management. Others incorporated in the structure are scientific method, project management, and team building. In all these steps of logical structure, systems thinking are the foundation of the framework. The review also talks about strategic questions; these questions are also explained in various diagrams. The questions are based on goals, success measures, assumptions, verification, purpose, outcome, and inputs. These questions when combined, they form the logical framework matrix. I agree with this model as it is important in showing the progress made towards achievement of objectives. The review also touches on strategic alignment; this alignment is enabled by the formulation of attainable goals......

Words: 331 - Pages: 2

Free Essay

Was George’s Decision to Kill Lennie the Right One?

...When George had made the decision to shoot Lennie, he had considered all the other options there were and had come to the conclusion that this was the only one where Lennie wouldn’t have suffered, and he was correct. Whether he had meant to kill Curley’s wife or not, Lennie is still a murderer. Not to mention the fact that he’d also killed countless mice given to him by his Aunt Clara mentioned by George on pages 9-10, and the young puppy from Slim he’d put to death at the beginning of Chapter 5. He is guilty of involuntary manslaughter, on top of his already soiled reputation as a result of the incident at Weed, where he’d unintentionally harassed a girl according to George on page 11, and is at this point seen by people as a full blown criminal. The fact that he has mental handicap won’t save him from the burden of being a killer, or from the punishments he would have to face as a result of his actions. In addition to that, Lennie could’ve done something bad again. His disability prevents him from making rational decisions, and the fact that, on page 7, he doesn’t even seem to remember what happened in Weed tells us that he’s forgetful to a fault. The man can even forget his own monstrous strength, and that’s what led to him killing the mice, the puppy, and even Curley’s wife. His anger issues— that are evident through him ‘punishing’ animals whenever they fought back, and him silencing Curley’s wife on page 91— only prove the fact that he is a threat to both society and......

Words: 608 - Pages: 3

Free Essay

Project Management Made Easy

...mündliche Form der Vereinbarung 77 3.7 Reaktion auf gebrochene Vereinbarungen 82 3.8 Notwendige Vereinbarungen für die Projektarbeit 82 4 Steuern 85 4.1 Definition 85 4.2 Teilprozesse der Steuerung 85 4.3 Reaktionszeit in der Steuerung 86 4.4 Steuern: Die 3 Aktionsebenen während der Durchführung 87 4.5 Planen oder Steuern? 88 Increase your impact with MSM Executive Education For almost 60 years Maastricht School of Management has been enhancing the management capacity of professionals and organizations around the world through state-of-the-art management education. Our broad range of Open Enrollment Executive Programs offers you a unique interactive, stimulating and multicultural learning experience. Be prepared for tomorrow’s management challenges and apply today. For more information, visit www.msm.nl or contact us at +31 43 38 70 808 or via admissions@msm.nl the globally networked management school For more information, visit www.msm.nl or contact us at +31 43 38 70 808 or via admissions@msm.nl eBooks kostenlos herunterladen auf bookboon.com Executive Education-170x115-B2.indd 1 18-08-11 15:13 5 Click on the ad to read more Projektmanagement - Grundlagen 4.6 Inhalt Rückmeldungen einholen 90 4.7 Changemanagement 92 4.8 93 Analyse der allgemeinen......

Words: 12265 - Pages: 50

Premium Essay

Management Decisions

...Unit 1 Tommie Brown AIU Online Abstract In this Individual Project I will be making a management decision regarding the legal form of business. There are several issues the investor is facing to begin a business such as little financial skills and no management skills and I will identify a few others. The two examples of the new technology ideas will be mentioned as requested by the spouse. A brief interpretation of the scenario issues will also be given. I will discuss the three business structures Sole Proprietorship, Partnership, and Corporation. The advantages and disadvantages of each business structure and I will provide examples so that these differences will be identified. In this manuscript all structures will be defined and researched and based on the scenario issues I will explain why I choose the Sole Proprietorship as the business structure that would be the most successful. In the final part of this project I will provide citations and aligned resources to support my decision. Individual Project Unit 1 In the scenario there is an inventor who has an idea for a new kind of home appliance that meets consumer needs. It is my interpretation that in this scenario inventor is facing a number of issues just like any other small inventor would be trying to start a business. These issues include having little financial skills and no management skills. The net worth wasn’t very high and that only meant that the inventor may not......

Words: 764 - Pages: 4

Premium Essay

How Are Decisions Made in Us Congress

...1.How are decisions made in Congress? What are the various factors influencing the decisions of congressional actors? What are the various ways (tactics) used to get legislation successfully through both houses? As a bill makes its way to become a law members of the Congress look to a variety of sources for indication. They often listen to their own beliefs and values but those views can be shaped by other considerations. First of all, members of Congress have always constituents in mind. Constituents are the people who live and vote in the same district or state. Legislator will not vote against the wishes of his constituency. But guessing how voters feel about any particular issue often is not easy. If an issue affects the constituency, a representative often will try to determine how the people feel. Staff members often send a lot of letters and make huge amount of phone calls for and against a policy that will be voted on soon. Studies by political scientists show that members vote in conformity with prevailing opinion in their districts about two-thirds of time. The other sources for voting cues are the opinions of one’s colleagues, especially those who belong to the same party. This tendency is observed concerning items of little concern to people back in the district or for which the legislator has little knowledge. The members turn for advice to colleagues who have served on the committee that handled the particular legislation. On issues that are of little......

Words: 1490 - Pages: 6

Premium Essay

Management Decisions

...Running head: Management decisions of business 1 Management decisions of business Running head: management decisions of business 2 Abstract There are many different aspects to look at when it comes to operating a business This will be a brief examination of just a few of those aspects Running head: management decisions of business 3 First I start my decision process by first understanding which option would be the best for Me. By doing this I have to first know what each one of the options actually does. I start With an investment banker. For those that don’t know an investment banker is the one Who helps a company or business raise equity or debt for the business they are trying To help. One downside of an investment banker is that they do not give loans or accept Deposits. An investment banker also in case of over-subscription they will make a hugh Profit by selling the issue for a high mark-up. Investment bankers can also work either The buy side or the sell side of a deal. They can also have companies make mergers which Can be horizontal, vertical, or conglomerate. Sometimes investment bankers are required To buy the issue to peg prices. Most...

Words: 844 - Pages: 4

Premium Essay

How Economic Decisions Are Made

...How Economic Decisions Are Made Penelope Carter ECO 212 April 2, 2012 David Smith How Economic Decisions Are Made If 10 people with 10 different occupations are asked to define economics, one would receive 10 different answers because the concept of economics confuses people. “Economics is the study of the choices consumers, business managers, and government officials make to attain their goals, given their scarce resources,” (Hubbard & O’Brien, 2010, p. 4). Oftentimes, people do not realize how many economic decisions they regularly make. People make daily economic decisions by comparing marginal benefits and marginal costs in conjunction with their current economic market system. Marginal Benefit and Marginal Cost I can recall several situations in which I had to make a decision by comparing the marginal benefit with the marginal cost. In economics, the word marginal means “extra” or “additional;” therefore, an “additional benefit” of something a person wants usually comes with an “additional cost” or consequence of acquiring it, (Hubbard & O’Brien, 2010, p. 6). The first car I owned was a 1987 Ford Taurus I purchased for less than 1000 dollars in 2003. It worked just fine for about a month and gradually parts started breaking. After a year of ownership, I realized I had spent twice as much as it cost to buy it in repairs. I had to decide if the marginal benefit of buying a new car and no longer pouring cash into fixing my old car was worth the marginal cost......

Words: 728 - Pages: 3