Question

ntroductloh Paul McTaggart sat at his desk. Behind him, the computer screen flickered with the home page of his exciting new website: abductee.net. In front of Paul were two folders. One was clearly labeled "Bank" and contained a funding proposal from the Business Development Bank of Canada; the other was marked "Venture Capital", and held a proposal from a possible partner. Paul knew he had to make a decision: which folder was he was going to go with. He had to make the decision soon if his website was going to be more than just a home page. However, neither of the folders contained the financing package he was looking for. Paul stared at the folders and thought back to the events that had led up to this moment of decision. The Young Entrepreneur When Paul McTaggart graduated from university in 1996, two of his instructors predicted he would be a millionaire by the time he turned thirty. Although Paul's academic record was about the middle of the class, his record as a budding entrepreneur was truly amazing. Paul started his first business when he was in grade nine. Bv the time he graduated from high school, he had built this venture: Student Lawn and Yard Maintenarnce to the point where he had four employee Paul's skill as a salesman and a promoter drove the growth of Student Lawn and Yara kaintenance. However, it was the operating systems Paul created for the business on his personal computer that drove the success of the venture. While other maintenance firms worked on an ad hoc basis, Paul created a complete lawn maintenance operating system. Paul's database tracked the frequency of mowing, the application of fertilizer, the watering schedules and the garden refuse removal. As a result, he was able to increase his customers' satisfaction by giving them a full and specific description of the work his crew had performed; and he was able to increase his profitability by accurately tracking his costs. Paul's goal, when he entered the University of Victoria in 1992, was to leam about the use of computers in business. In his first year, he fit as many Computer Science courses into his schedule as he could. That summer, he got a job selling computer hardware and software. However, the most important thing Paul discovered that year was the internet. Through the university computer labs, Paul discovered he could send and receive e-mail around the world. More important, he discovered surfing the web using the new program created at the National Center for Supercomputing Applications at the University of Illinois'. This program was called Mosaic, and Paul realized it was about t change the way the internet worked. When Paul entered the Vic Commerce program, he lnew his future in business would be tied to the intemet. He set out to learn everything he could about networks. During his first coop term, Paul got a job working as a Computer Network Assistant at

And there was a buy-sell arrangement which laid out the conditions under which either shareholder could buy out the other. Paul knew that this offer would strengthen his financial picture…but did he really want a partner?It was going to be a long night.

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what would you do if you were Paul with regards to financing, and why?

Answer 1

Answer:

Paul knew that this offer would strengthen his financial picture. But he really did not want a partner. Paul was not in the need of partner and he wants to make his own business plan and wants to execute the business as per his own approach and plans. Paul was looking for some finance options, so that he can get the fund and can invest in the business. But he was not in the process of partnership approach. Paul already has a option to get a loan from the bank and the bank is also willing to offer Paul a loan for his investment plan. So ideally Paul is not like to have the partner for his business. Though he will get financially strengthen with partnership approach, but still he do not like the partner in his business.

If I were Paul, I will explore to have partner with regards to financing because the financing from the partner will help me to reduce the financial burden and help me to focus on the business implementation so that I can focus on business implementation and plan to achieve better outcome form the business. So I would like to adapt the approach of partnership in this business to get financial support from the other partner.