10-28-2010, 05:13 PM
Case
Ali had worked with his father in a successful building materials business. The family had sold the company, and the Ali received a portion of the sales price. After several months, Ali began thinking about starting or buying a company. One of his hobbies was backpacking; he had hiked the highest peaks in 30 of the 50 states. In his search for a new business, Ali heard of a company that made small trailers for motorcycles. These trailers were fairly popular with retirees who were cyclists and with individuals who liked to travel on motorcycles in order to go into the back-woods where a car could not go.After several meetings, Ali and the current owner of the firm negotiated a selling price and the deal was consummated. Immediately after the purchase, Ali moved the business from its present location to his own town, several hundred miles away.
Glossary
Backpacking- hiking and camping, Backwoods- wasteland, Consummated- to conclude something
1. Why should Ali buy the company instead of starting his own firm? (7)
2. What are the pros and Cons for Ali’s buying of this particular business?(8)