Question

Gary decides to buy an existing home goods store, instead of starting his own from scratch. Once he takes over the business, he learns that several customers have complained that one of the company's distributors doesn't pack items sufficiently for shipping, and their items arrived broken. What is Gary's responsibility in resolving this problem?

Multiple Choice

• Gary is responsible for taking on and resolving any problems the business already has.

• Gary is not responsible for problems that existed before he bought the company.

• Gary can require the previous owner to resolve this problem.

• Gary can expect the customers and distributor to resolve the problem themselves.

• Neither Gary nor the previous owner is responsible for resolving this problem.

Jorge is an employee at a company that provides information technology solutions to other firms. Recognizing his potential to innovate, the top management of the company has given him the complete liberty to develop a new smart-phone application using the resources of the company. In this scenario, Jorge best illustrates

Multiple Choice

• a franchiser.

• a venture capitalist.

• an intrapreneur.

• a product champion.

• a trade creditor.

Answer 1

1. Gary is responsible for taking on and resolving any problems that the business has. This is because the business reputation will get affected if Gary does not resolve the issues. This will lead to loss of future business for him.

The other options are incorrect because the previous owner after selling the company will not have any interest or incentive to resolve the issues that might exist. Gary is the owner now and he is responsible for his business. He cannot expect consumers to resolve it themselves because that would cause dissatisfaction to consumers and they will switch to buying goods from somewhere else.

2. The answer is an intrapreneur. An intrapreneur is a manager in a company who is involved in product development. Jorge is working in the company but has been given all the resources needed to develop a product. He is managing the development so he is called as an intrapreneur.

Option 1 is incorrect because franchiser is someone who gives the right to another entity to sell the former's good. Because Jorge is an employee, he cannot be seen as selling his good, the product developed would belong to the company. Option 2 is incorrect because venture capitalist is someone who provides capital to startups who have an idea that will potentially grow in future. Here Jorge is not using his own capital. Option 3 is incorrect because product champion is someone who sees value in an idea or product and develops it. Here Jorge was asked to make the product by the management. Option 4 is incorrect because trade creditor is someone who has supplied goods to you on credit. Jorge is not supplying goods on credit. He is coming up with a product for the company.