Business decision case A Upon graduation from high school, Jim Crane went to work for a...

 

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Business decision case A Upon graduation from high school, Jim Crane went to work for a builder of houses and small apart- ment buildings. During the next six years, Crane earned a reputation as an excellent employee-hardworking, dedicated, and dependable-in the light construction industry. He could handle almost any job requiring carpentry, electrical, or plumbing skills. Crane then decided to go into business for himself under the name Jim's Fix-It Shop, Inc. He invested cash, some power tools, and a used truck in his business. He completed many repair and remodeling jobs for homeowners and apartment owners. The demand for his services was so large that he had more work than he could handle. He operated out of his garage, which he had converted into a shop, adding several new pieces of power woodworking equipment. Now, two years after going into business for himself, Crane must decide whether to continue in his own business or to accept a position as construction supervisor for a home builder. He has been offered an annual salary of $ 50,000 and a package of fringe benefits (medical and hospitalization insurance, pension contribution, vacation and sick pay, and life insurance) worth ap- proximately $ 8,000 per year. The offer is attractive to Crane. But he dislikes giving up his business since he has thoroughly en- joyed being his own boss, even though it has led to an average workweek well in excess of the standard 40 hours Suppose Crane comes to you for assistance in gathering the information needed to help him make a decision. He brings along the accounting records that have been maintained for his business by an experienced accountant. Using logic and your own life experiences, indicate the nature of the information Jim needs if he is to make an informed decision. Pay particular attention to the information likely to be found in his business accounting records. Does the accounting information available enter di- rectly into the decision? Write a memorandum to Jim describing the information he will need to make an informed decision Business decision case A Upon graduation from high school, Jim Crane went to work for a builder of houses and small apart- ment buildings. During the next six years, Crane earned a reputation as an excellent employee-hardworking, dedicated, and dependable-in the light construction industry. He could handle almost any job requiring carpentry, electrical, or plumbing skills. Crane then decided to go into business for himself under the name Jim's Fix-It Shop, Inc. He invested cash, some power tools, and a used truck in his business. He completed many repair and remodeling jobs for homeowners and apartment owners. The demand for his services was so large that he had more work than he could handle. He operated out of his garage, which he had converted into a shop, adding several new pieces of power woodworking equipment. Now, two years after going into business for himself, Crane must decide whether to continue in his own business or to accept a position as construction supervisor for a home builder. He has been offered an annual salary of $ 50,000 and a package of fringe benefits (medical and hospitalization insurance, pension contribution, vacation and sick pay, and life insurance) worth ap- proximately $ 8,000 per year. The offer is attractive to Crane. But he dislikes giving up his business since he has thoroughly en- joyed being his own boss, even though it has led to an average workweek well in excess of the standard 40 hours Suppose Crane comes to you for assistance in gathering the information needed to help him make a decision. He brings along the accounting records that have been maintained for his business by an experienced accountant. Using logic and your own life experiences, indicate the nature of the information Jim needs if he is to make an informed decision. Pay particular attention to the information likely to be found in his business accounting records. Does the accounting information available enter di- rectly into the decision? Write a memorandum to Jim describing the information he will need to make an informed decision

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Date To Jim Crane From Your Name Subject Information for Decision Making Hello Jim I hope everything ... View the full answer