KH Inc. has a small convenience store business operating from 5 AM to 9 PM. John the owner recently hired his long-time friend Joe to help him. Joe and John have been friends for 30 years.

Joe is the ideal worker. He comes in before the store opens and leaves after the store closes and handles all aspects of the business. Joe has contacts as he knows many suppliers and is able to order inventory at much better prices than John, takes care of the customers, sells the inventory and collects cash from sales to customers, and as a previous accountant, handles the company’s books and records. Joe has recently been handed divorce papers from now his wife of 15 years. Despite this challenge with his pending divorce, Joe has not missed a beat-he stills works like a horse and continues to perform extraordinarily at work.

John is s bit confused as he sees sales booming which he attributes to Joe , but seems to be losing money nevertheless.

 Name 4 red flag indicators in this case study.

2-What did John do wrong with his dealings with Joe?

3- What should John have done with his dealings with Joe?

4-What should John do now?

Answer rating: 100% (QA)

1 There is no mention of a contract between John and Joe which could create legal problems ... View the full answer