Business ventures | Operations Management homework help

 How should state and local taxes impact the results of the major strategic decisions faced by the three ventures as they start up the business? Discuss

Galadriel Elvin, a wealthy entrepreneur, was returning home after taking the eldest of her three children to start college on the other side of the country when she noticed that the person sitting next to here in the first-class cabin was absentmindedly fiddling with a pink substance. When she asked about it, Bill Halfacre explained that he had developed it because he was spending a small fortune on batteries for his young children’s toys. Simply dipping regular alkaline batteries in the substance for an hour had proven to more than double the effective life the batteries.

When Galadriel mentioned that this was a great idea, Bill replied that he was a bit depressed because he had been trying to connect with someone who could help him develop and market the product, but had been unsuccessful. Galadriel encouraged him, and discovered that he had lived a varied and interesting life. He had earned several degrees in chemistry, but had spent all his time since graduating surfing throughout the world, and tinkering with various inventions. (He had inherited enough money that he had not had to work since he finished school 5 years ago, but the money was running out.)

By the time the plane landed, Galadriel and Bill had set a time to meet with Galadriel’s lawyer, Elsa Treebeard, to discuss a venture to market Bill’s products. They had also invited one of Galadriel’s colleagues, Jim Pippin, to attend the meeting. Jim had worked with Galadriel on several occasions: he makes a lot, but keeps very little, money. He is a marketing whiz who has strong connections to several distributors to large office supply outlets. Galadriel’s concern with Jim has always been that he plays things a bit fast and loose.

At the meeting with Elsa, the group developed projections of profits and losses for the first five years of the business. The expectation is that annual losses will range from $100,000 to $200,000 over these five years, with break-even in about Year 5. The business will be capitalized with about $200,000 in cash, along with computers, equipment, furniture, and fixtures (fair market value of $100,000 and basis of $25,000) contributed by Galadriel. Bill will contribute the patent at an agreed value of $150,000. Jim has nothing to contribute but time. He will receive a 25% interest for contributing all of his time for a year to get the business going. Thereafter, he will be compensated based on sales and profits. Elsa believes they will be able to borrow $200,000 initially and perhaps an additional $100,000 per year during the development period. The money will be used for working capital and manufacturing equipment. They feel that they may be able to attract new investors once some of the initial work has been completed.

Galadriel thinks Jim brings some needed talents to the venture, but she is very uneasy about being exposed to liabilities that he might create. Bill says he has nothing to lose so the association with Jim does not concern him. Galadriel has about $500,000 in income each year. Bill’s income is about $25,000 a year and Jim has earned anywhere from $0 to $200,000 annually over the last few years.

University Writings
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.