question archive Case 2This case study begins with two friends Alex and James who worked at an organization as employees
Case 2This case study begins with two friends Alex and James who worked at an organization as employees
Subject:MarketingPrice: Bought3
Case 2This case study begins with two friends Alex and James who worked at an organization as
employees. At some point, they decided to start their own business together - a business where
they would be partners on equal footing but in terms of profit, as Alex was only investing capital
but James was taking part in management and other business activities and he was also investing
capital. They had a small start-up capital for their enterprise. With that capital, they began doing
business in the fields of wholesale trade and small-scale transportation. The level of competition
in these fields was moderate. Eventually, the company needed to hire two employees. Alex gave
idea about Terry, one of their mutual friends, he was contacted to be partner as Terry was very
good at management. Terry asked them not to disclose to the public that he is partner in this
business but he will participate in daily management and day to day activities, plus he will also
invest in business, although his partnership with Alex and James should be confidential.
Within two years, the company was making a small profit. However, then the state of its finances
began to deteriorate, even though the partners tried running the business in different ways. They
were in bad position financially. Partners were trying their best to stable their business in different
ways.
Q 3: Name and explain the type of partners, Alex, James, and Terry are?
Q 4: As Terry partnership is confidential, is he liable for the debts of business?
