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Business Scenarios


Please address each scenario

Scenario 1 :

The Neighborhood Pizza Place is not doing well. The husband and wife of this small business are now $10k in debt and they are not making any profit after expenses. They decided there is too much competition in the local area and strip mall owner told them last Friday that in 3 months their rent is going up 10%, which will put them in the red without a doubt. They rent the cash registrars, own the ovens and have about $7k currently in other inventory. They have 2 full time shift leaders and 5-part time employees. They want to close their operations in 3 months and are undecided about opening in another location. Should they file for a Chapter 7,11 or 13? Should they put an ad in Craigslist, or another sales publication and try to sell their business? Are they obligated in any way to the employees? Please answer their questions and give them advice on what they should do along with your rationale.

Provide at least 1 reference
Learning Activity #2

Small business owners are very susceptible to catastrophes. These include natural disasters such as floods, hurricanes, tornadoes, earthquakes extended snow closures etc. Other disasters and perhaps more frequent and dangerous are man-made threats such as hacking into computer systems, data theft robbery, assailants assaulting employees or causing damage.

Based on the geographical region you live, indicate top two natural disaster threats and list the precautions that a small business owner should take to guard against those threats. Please indicate your geographical location in the response. Be sure to consider the business operations, the employees, the property/equipment and vital information sources. Be specific in describing the precaution.

List two man-made threats and the precautions you would recommend a small business owner should take to protect his/her employees, property and business against these threats.

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