Case Study One – Zatswho LLC.
1. What tips can you offer Cooper and Schwinoff about family members who start and run a business together? What pitfalls would you warn them to avoid? Some tips that I would offer Cooper and Schwinoff would be to listen to one another and compromise on what you may or may not think is the right thing to do. A tip that I would offer Schwinoff would be that even though Trisha is your mother stand up for what you think is the right thing to do with the company but don’t force your opinion upon her, working together in a peaceful state of mind would be the best way to deal with any complications of the company. A tip that I would offer Cooper is that just because Carrie is your daughter doesn’t mean that she will like everything you bring to the table and approve of your outlook, so don’t force anything on her and listen to her opinions, working together in a peaceful state of mind would be the best way to deal with any complications of the company. I would tell them to avoid things like I’m the mother and you’re the daughter situations. I would also tell them that they need to listen to one another to avoid fights with each other and to avoid arguments. Listening to each other is a major thing that both people have to do in any business to make the business work otherwise the business would fail and cause both parties to blame each other. 2. Suppose that Cooper and Schwinoff had approached you when they were launching Zatswho concerning the form of ownership they should use. Which form of ownership do you recommend they use. Why? I would recommend that they use a partnership, since they both bring different parts of experience to the table and I would also recommend that they use a 50%-50% partnership, especially since Schwinoff offered the $30,000 to start the business and Cooper offered up an idea and a prototype. Considering that Cooper has the background in finance and Schwinoff has the marketing degree I would...
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