William is a diligent computer programmer at the age of 28 years old. He has acquired advanced programming skills over the years. However, he is rather introverted and therefore, has few friends. Although he has performed system support services to many organisations, he has not established very close contact with any of them. William had been thinking of setting up his own business for some years. Being a frugal person, he managed to save RM40,500.00. He intends to sell his superbike for RM8,500 to add to the start-up cost. Unfortunately, he does not have much financial knowledge and he is not an experienced manager. Question: Suggest which form of business ownership is most appropriate for William. Justify your proposal of this form of business ownership.

William is a diligent computer programmer at the age of 28 years old. He has acquired advanced programming skills over the years. However, he is rather introverted and therefore, has few friends. Although he has performed system support services to many organisations, he has not established very close contact with any of them. William had been thinking of setting up his own business for some years. Being a frugal person, he managed to save RM40,500.00. He intends to sell his superbike for RM8,500 to add to the start-up cost. Unfortunately, he does not have much financial knowledge and he is not an experienced manager. Question: Suggest which form of business ownership is most appropriate for William. Justify your proposal of this form of business ownership.

Foundations of Business - Standalone book (MindTap Course List)

4th Edition

ISBN:9781285193946

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Chapter15: Using Management And Accounting Information

Section: Chapter Questions

Problem 5DQ

See similar textbooks

Similar questions

Ms. Aezhel Joy Villa is holding a United States of America passport and is traveling to TelAviv, Israel for business. What documentation does she require for her travel? What additional information may be helpful to her?
Hani has a small house painting business with two employees. Hani's father gave his son start-up money and occasionally contributes to the business financially when Hani is having a cash flow problem but has nothing to do with the running of the business. Hani always pays his father back out of business profits. What kind of business does Hani have? a. A sole proprietorship b. A corporation c. A partnership O d. A cooperative
You’re getting ready to expand yourwoodworking hobby into a full-time business ofbuilding custom kitchen cabinets. To create top-qualitycabinets, you know you’ll need to upgrade from theconsumer-grade machinery you have now toindustrial-grade equipment. The new equipment willbe much more expensive but, if properly cared for,should last for decades, and you hope to be inbusiness for at least 20 years. If the overall costs ofleasing this equipment or borrowing money to buy itare roughly the same, which financing method wouldyou choose? Why?
As a new member of the board of directors for a local manufacturing company, MohsinKhan was being introduced to all the employees in the home office. When he was introducedto Hassan Khan, he was curious about his work and asked him what the machine he wasusing. Hassan replied that he really did not know what the machine was called or what it did.He explained that he had only been working there for 2 months. However, he did knowprecisely how to operate the machine. According to his supervisor, he was an excellentemployee. At one of the site offices located in another city, the supervisor in charge spoke toMohsin confidentially, telling him that something was wrong, but he didn’t know what. Forone thing, he explained, employee turnover was too high, and no sooner had one employeebeen put on the job than another one resigned. With customers to see and place orders, hecontinued, he had little time to work with the new employees as they came and went. All site supervisors hired their own…
4- Cash flow statement of any company shows the net cash inflow and outflow during a period of time. Which of the following activities are considered while making cash flow statement? a. Cash flow from investing activities b. All of the options c. Cash flow from financing activities d. Cash flow from operating activities
Explain what retention funding is and the reason why a risk manager mightimplement retention funding?
Fred is a friend of yours and works with you at the same company. He is a well-respected and trusted employee. He has two young children and is a leader in his community. You have discovered that Fred has embezzled $3,000 over a period of several years. Although this is not much money for such a large company, you suspect that if you do not report him, the problem may get worse. On the other hand, he has young children, and he has done so much good in the community. If you report him, he may be fired and go to prison because your company has an aggressive anti-fraud program and fraud prosecution policy. Should you report him or are there any other alternatives to deal with this problem available to you?
How would you rate of financial health of the hartwicks before the second automobile broke down?
4.2 explain risk financing and risk management to ease the above financial strain thatbusinesses suffered.
Kayla took out an amortized loan of $240,000 with a 5% interest rate. Her monthly payment is $1,288.37. How much will she pay in interest on her first monthly payment? $1.200 $1.150 $1.000 $900
John is a finance director of Nadim Product PLC, a company which manufactures and sells bathroom product such as baths, sinks and toilet. These product are sold through a selection of specialist shops and through larger store, customers include professional plumbers and also ordinary householder who are renovating their houses themselves. The company operates at the lower end of the market and does not have a strong reputation for service. Sales have been slowly declining whereas those of competitors have been improving. In order to encourage increased sales the board of directors has decided to pay senior staff a bonus if certain target is achieved. The two main targets are based on profit levels and annual sales. Two months before the end of the financial year the finance director asks one of his staff to check through the order and account to assess the current situation. He informed that without a sudden improvement in sales before the year end the important sales target will not…
Founded in 1967, Grupo ISA is Colombia’s largest energy transport company. ISA attaches great importance to its shareholders. On 15 November 2001, it adopted Corporate Governance Code based on international standards and aimed at ensuring the ethical integrity of the company and proper management of the company’s affairs. SA’s Board of Directors has seven members. Each director is elected based on aptitude, knowledge, experience and leadership criteria. . All Board members and their representatives attend meetings. Which ONE of the following statement is untrue regarding international code of corporate governance? a-The nomination committee should appoint directors every three years b-At least half of the board should comprise non-executive directors c-Remuneration committee should not include nonexecutive directors d-The role of chairman and chief executive officer should be separated