John Willis, who is 27 and single, had just completed his fifth year of employment as a carpenter for a very small homebuilder. His boss, the sole owner of the company, is Tyrone Young. A few days ago, Tyrone asked John if he would like to become a partner, which he could do by contributing $70,000. In turn, John would receive 40 percent of all profits earned by the business. John had saved $30,000 and could borrow the balance from his grandmother at a low interest rate, but he would have to pay her back within 15 years.
1. Does John have the personality to be a sole proprietor?
2. Do you think John is seriously ready to become a partner? Explain your answer.