BUS630 Middlehurst House Case 9A

Analysis: in Chapter 9

Middlehurst House

Analysis: Case 9Ain Chapter 9

As we are familiar with the case, we feel that two very important issues have not been addressed which in sufficient detail, given that it may influence the profitability of the business venture. These are

General:

(1) The allocation of capital by both the partners and the stockholders

(2) Auditing of facilities and services so that expansion can be carried out later or even facility augmentation

Economic viability

(3) If such extension is meant to augment the profit of the partner, or to offset the losses (either of the two) than what steps can be taken to ensure this is viable, and the best economic process is thought off?

Let us first examine the conditions via which the initial...