Business Organization Structures

 

Eric Forman formed a limited partnership with his father-in-law, Bob Pinciotti, to open a fondue

restaurant in the town of Point Place. Eric was the general partner and owned 75% of the

business. Mr. Pinciotti, with 25% ownership, was the limited partner and invested $100,000.

After one year, difficulties in the restaurant’s operation caused business to drop off, and Eric

called Mr. Pinciotti for advice.

After hearing of the difficulties, Mr. Pinciotti became concerned with the security of his

investment. He took off of work and spent two days observing the restaurant operations. The

two partners then decided to launch a large and expensive television ad campaign to increase

flagging sales. Mr. Pinciotti designed the campaign with the help of Groovy Advertising, a

local ad agency.

There was an immediate increase in sales when the commercials first aired; however, volume

quickly and significantly declined once again. Finally, three months after the ad campaign was

launched, the restaurant closed its doors. The restaurant closed with debts totaling $400,000 and

assets of only $200,000. The debt included $150,000 owed to Groovy Advertising, who sought

payment directly from Mr. Pinciotti since the partnership did not have sufficient cash or other

assets to pay the debt.

Mr. Pinciotti claimed that his liability was limited to the $100,000 invested in the restaurant

and refused to pay any additional money. Groovy Advertising sued the limited partnership,

as well as Eric Forman and Bob Pinciotti individually

Questions:

1. Did Mr. Pinciotti forfeit his limited partnerstatus by hiring Groovy Advertising?

2. Is Mr. Pinciotti liable for the outstanding debts of the limited partnership?

 

Sample Solution

zation (Young, 1990). Internationalization can be clarified as a continual process that gives huge changes in terms of state and implies dynamic change, as (Buckley & Ghauri, 1993) also shared the whole notion of a developmental process. In fact, they declare that main reason to internationalization is because of the growth of the firm. In contrast, other researchers said that other things, as well as client following (Erramilli & Rao, 1990), strategic-asset seeking (Dunning, 1980), merger acquisition (Gilbert & Zok, 1992), or risk avoidance (Robock & Simmonds, 1989), contribute to shaping the internationalization of firms.

Because of the revolution of global environment these days, internationalization considered as a thing that couldn’t be avoided if the targets of the company are meant to be achieved. However, (Beamish, 1990) stated that internationalization is a way that constructs their awareness of international transactions either by directly or indirectly effect on their future and collaborate with different countries. This explanation about internationalization declares that as the unidirectional process of increasing investment, involvement, and commitment which exsiccate international contribution of a firm. In conclusion, internationalization intends to adapt their entanglement and responsibility to international competition and markets.

Thailand’s government realized their tourism and hotel industry provides the largest source of income in Thailand which delivered to encourage Thai enterprises to go international since the beginning of the 1990s through various institutional and measures support facilities. In addition, their government made a 39 bilateral investment agreement and 56 double taxation deal with various regional arrangements and economies collaboration and bilateral FTA treaty. Therefore, with all the things that have been done by the government, Thailand’s enterprises, especially in hospitality and tourism industry, be expected to expand more across the countries.

International Tourist Satisfaction and Destination Loyalty: Bangkok, Thailand

Tourism trends consider Asia and the Pacific region as the second of the most visited area in the world according to World Tourist Organization in 2007 and in term of tourism segmentation, cultural tourism has become the fastest part that has been growing in 2001 by World Tourist Organization. With their famous culture and strategic location, both factors enable Thailand to compete with other countries and stimulate Thailand as a favorite tourist destination. A continual increase in the number of international tourists depicts further that Thailand one of the world’s leading tourist destination.

The difficulty for Thai government since the 1990s in term of international tourism growth without a right planning has been a challenge for all these years. Such as AIDS (Chon & Singh, 1994), safety (Li & Zhang, 1997), degradation of the environment (Jansen-Verberke & Ko, 1995) and sex tourism (Esichaikul & Baum, 1998). Since then, a few studies and research have been conducted to get a further information about Thailand’s images and motivation factors of foreign tourist with the chance to revisit Thailand (Rittichainuwat, et al., 2008). These studies aim to measure the international tourist satisfaction with their experience when they explore Bangkok.

This question has been answered.

Get Answer
WeCreativez WhatsApp Support
Our customer support team is here to answer your questions. Ask us anything!
👋 Hi, Welcome to Compliant Papers.