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Ted Brown and Jim Green have been discussing going into business together for several months, and they are
anxious to start that business before the end of this month. However, both Ted Brown and Jim Green each
have to be out of town for several weeks on other business, so Ted Brown has told his son, Theodore, who is
16, about the discussions with Jim Green and has appointed Theodore to complete negotiation of the final
details of the business. Jim Green has told his son James, who is 18 years old, about the discussions with Ted
Brown and appointed James to complete the negotiations.
The business that Ted Brown and Jim Green want to create will develop an app for cell phones that will identify
family-oriented attractions along major highways so families can download the app to help in planning family
vacations. The development of the app will take 4 months, and then it will take approximately another 4 months
to fully deploy the app. As the app becomes popular, the business will solicit family-oriented businesses to
advertise on the app. Ted Brown and Jim Green have very little capital to use in the development and
deployment of the app and will probably need to raise the capital necessary to develop and deploy a quality
app.
In your case study, address the questions below.
Can Theodore Brown and James Green legally create the business that Ted Brown and Jim Green have been
discussing? Why, or why not?
If Theodore and James do create the business, what duties do they each owe their father? Describe what
those duties mean in this case.
What factors do Ted Brown and Jim Green (or their sons on their behalf) need to consider in selecting a form
for this business?
What form of business will provide the most advantage for their venture?
What are the disadvantages of the form of business that they selected?

Sample Solution

The worker proprietorship agreement not just helps the telecom behemoth draw in and hold representatives, additionally permits the association to get ready for the long term. Huawei arranges the improvement of the organization by decade, while a considerable measure organizations do it by money related year. In addition, with Huawei is a secretly held organization, can chip away at its 10-year arranges, while rivals battle to take after close term variances of the capital market. Huawei has likewise presented the utilization of a pivoting senior initiative framework in which three representative director alternate going about as CEO for six months each. While, Ren Zhengfei keeps up his oversight part, going about as a guide and coach to the acting CEO. This sort of inventive administration structure makes it less powerless for the organization in the event that one boss comes up short. Be that as it may, it can be much troublesome for an openly held organization to receive such a bizarre arrangement. Ren Zhengfei is known for avoiding the demonstration of taking quick decisions. His association reflects these characteristics. He trusts it’s for the most part on account of the proprietorship structure, which makes it simple, no outside speculator will increase relative control over Huawei. Additionally, it helps Ren Zhengfei settle on an unfaltering decision about his definitive successor. Huawei furthermore underlines what they call “the force of considering.” Huawei’s organization logic is that the most important resource is the ability to think. For example, endeavours are made to ensure that scholarly trade happens as an issue of schedule. Senior pioneers are urged to peruse books outside their territory of skill and books must be accessible in each office. Also, thoughts are passed on frequently, to every illustrative by both Senior pioneers and Ren Zhengfei. Essentially, criticism is continually invited over the association to improve those thoughts that will in the end empower the future vision of the organization. In addition, In October 2013, Huawei has been chosen by TDC A/S as a sole merchant to modernize the across the country GSM/UMTS/LTE organize in Denmark and give oversaw benefits over a six-year time frame. The estimation of the agreement is over $700 million over the term of the agreement According to TDC and Huawei Contract (2014-03-24).

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