Tariq khan was a real craftsman when it came to being a machinist. Tariq khan had learned almost all that he knew from Daud, his first and only employer. Tariq khan was married and had three young children. He was 33 years old and had worked for Daud ever since he finished his tour in the Army. In 1 2 years, Tariq khan had polished his skills under the watchful and critical eye of Daud. Daud was quick to recognize Tariq khan's talent for the trade. Tariq khan had a positive attitude about learning and displayed a drive for perfection that Daud admired. Daud's Machine Shop was a successful small business. Its success was based mostly on the reputation for quality that had been established over its 42 years in operation. Daud had come to this country with his new wife, Salmah, when he was in his late twenties. Now the business was a success, but Daud remembered the early years when he and Salmah had to struggle. Daud wanted the business to continue to produce the highest quality craftsman products possible. On a Friday evening, he called Tariq khan into his office at closing time, poured him a cup of half-day-old Coffee, and began to talk with him about the future. "Salmah and I are getting old and I want to retire. It has been 42 years of fun but these old hands need a rest. In short, Salmah and I would like you to buy the business. We both feel that your heart is in this craft and that you would always retain the quality that we have stood for." Tariq khan was taken aback by the offer. He, of course, knew Daud was getting older, but had no idea Daud would retire. Tariq khan and his wife, Timah, had only Rs.50, 000 in the bank. Most of Tariq khan's salary went for the normal costs of rearing three children. Daud knew Tariq khan did not have the money to buy the business in cash, but he was willing to take a portion of the profits for the next 1 5 years and a modest initial investment from Tariq khan. Tariq khan had, for the past four years, made most of the technical decisions in the shop. Tariq khan knew the customers and was well respected by the employees. He had never been involved in the business side of the operation. He was a high school graduate but had never taken business courses. Tariq khan was told by Daud that even after deducting the percentage of the profits he would owe under the sales agreement; he would be able to almost double his annual earnings. Tariq khan would have to take on all the business functions himself because Timah had no business training either. He was thinking about the offer as well as his financial position to support the business and family. He also thought about newly emerging crafts shops in the vicinity that offer a variety of items even some at lower prices. Such thought of competition discouraged him in accepting the offer as tough competition may affect his sales. 1. Discuss entrepreneurial characteristics. Does Tariq khan has any that may be important to his success? 2. Should he accept the offer of Mr. Daud as it is or he may discuss some changes in proposed contract? 3. Explain characteristics that could lead to Tariq khan's failure? 4. Elaborate steps that Tariq khan should take to avoid the pitfalls common to a Small business? 5. Suggests ways to Mr. Tariq about how to manage the competition?