Mgt602 Assignment No. 1 Solution

IDEA A:

I think ali should buy a company instead of initiating a new company because he does not have any experience of developing his own business and also he possesses a small amount of money and it is quite hard to initiate a business with small investment....

IDEA B...

As this business is concerned to the travelling and outing.... ali has experience of outing and travelling this is one of the biggest edge for him.... also this is the thing that made him convinced to do this business although he does not have any experience.....
another thing in this business is ....he can bring new trends and inovation to this business because he has a great experience and interest regarding this field


This is not a solution but a though that came to mind when i saw this question and according to me i think this can help us to give solution to this assignment.

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Semester “Fall 2010”
“Entrepreneurship (MGT602)”
Assignment No. 01 Marks: 15
Important Tips
1. This Assignment can be best attempted from the knowledge acquired after watching video lecture no. 1 to lecture no 10 and reading handouts as well as recommended text book.
2. Video lectures can be downloaded for free from www.youtube.com/vu.
Schedule
Opening Date and Time
October 27, 2010 At 12:01 A.M. (Mid-Night)
Due Date and Time
November 1, 2010 At 11:59 P.M. (Mid-Night)
Note: Only in the case of Assignment, 24 Hrs extra / grace periodafter the above mentioned due date is usually available to overcome uploading difficulties which may be faced by the students on last date. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience.
Important Instructions:
Please read the following instructions carefully before attempting the assignment solution.
Deadline:
• Make sure that you upload the solution file before the due date. Noassignment will be accepted through e-mail once the solution has beenuploaded by the instructor.
Formatting guidelines:
• Use the font style “Times New Roman” and font size “12”.
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Solution guidelines:
• Every student will work individually and has to write in the form of ananalytical assignment.
• Give the answer according to question, there will be negative markingfor irrelevant material.
• For acquiring the relevant knowledge don’t rely only on handouts butwatch the video lectures and use other reference books also.
Rules for Marking
Please note that your assignment will not be graded or graded as Zero (0) if:
• It has been submitted after due date
• The file you uploaded does not open or is corrupt
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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)