The business of importing and supplying jewellery as wholesa

Assignment Help Business Management
Reference no: EM13304477

Assignment Topic:

Andrew, Brian, Colin, Diana and Elizabeth were the directors of Gemsales Pty Ltd, a company engaged in the business of importing and supplying jewellery as wholesalers to the local market.

The company decided that as the market was becoming more competitive it needed to expand its business as it felt with increased volumes of sales it would be able to lower its prices and be more competitive. In order to do so it obtained a $4 million dollar loan from the Friendly Bank Ltd. $3 million was used to buy more stock and $1 million was used to buy a large new warehouse and showrooms from Traders Pty Ltd.

Colin was not at the meeting that had made these decisions as he was in hospital recovering from a serious accident. Elizabeth, as was her usual custom, had not attended the meeting but signed the requisite documentation agreeing to the expansion of the business and the getting of the loan. Diana who attended, said she did not know if she agreed and abstained from voting. Andrew and Brian both voted to go ahead with the expansion and the getting of the loan.

At about this time Brian has established contact with Victor, who was setting up a new business as a retailer of jewellery. Victor was looking for reliable suppliers, but said he would not deal with Gemsales Pty Ltd as he did not like Andrew, the Managing Director. Not wishing to miss out on such a lucrative business opportunity, Brian arranged to set up his own business as a jewellery wholesaler and a contract was entered into between Victor and Brian for the supply of jewellery.

Six months later, Brian resigned as a director. At the same time it was clear the company had over-extended itself and was insolvent and could not pay the interest on its loans.

It also became clear that Brian was a major shareholder in Traders Pty Ltd and the other directors were unaware of this at the time of the purchase of the warehouse and showrooms. Furthermore, Brian had been approaching other established customers of Gemsales Pty Ltd and had secured orders for his own business.

 

 

 

Reference no: EM13304477

Questions Cloud

Hasbro is willing to pay for this service : Hasbro is approached by a savvy economist who has figured out a way to identify each market and segregate them. The demand from bronies and little girls is as indicated above.
Two leadership styles democratic and autocratic : Two leadership styles - democratic and autocratic.
The university of phoenix virtual organizations : A) Research the forms of data used in the system of your choice. This system could be your own health care organization, the Patton-Fuller Community Hospital found in the University of Phoenix Virtual Organizations, or an organization from the course..
Possible media solutions that will support this download : You are sitting at your desk at work, using your laptop computer. The boss calls an emergency meeting for you and several coworkers, and asks everyone to bring his or her laptop computer.
The business of importing and supplying jewellery as wholesa : Andrew, Brian, Colin, Diana and Elizabeth were the directors of Gemsales Pty Ltd, a company engaged in the business of importing and supplying jewellery as wholesalers to the local market.
The ibm case study and the deloitte consulting case study : Read both the IBM case study and the Deloitte Consulting case study in Kerzner,prepare a written summary and address the following questions:
Obtain standard errors of your estimates : Obtain standard errors of your estimates in part (a) using the Wild bootstrap with (B = 9, 999).(c) Using the bootstrap (with B = 9, 999) test H0 : β2 = 0 vs. H0 : β2 6= 0 at the 5% level.
A research methodology to use for topic (mixed method) : Your group project you selected a research topic (the effects of childhood bullying) and a research methodology to use for that topic (mixed method)
A research methodology to use for topic (mixed method) : Your group project you selected a research topic (the effects of childhood bullying) and a research methodology to use for that topic (mixed method)

Reviews

Write a Review

Business Management Questions & Answers

  Explain what ethical leadership and management violation

What ethical leadership and management violation has Victor committed? Explain. What legal protection is available to John if he decides to inform the SSA about the software use? Explain.

  Acorn brewery inc makes as well as sells alcoholic beverages

Acorn Brewery Inc makes as well as sells alcoholic beverages with labels that display a drawing of a squirrel making the gesture generally known as giving the finger

  Illustrate what point does the risk of loss of goods pass

At illustrate what point does the risk of loss of goods pass from seller to the buyer. A contract between Kwik Import Corporation in Los Angeles and Macro Retail Corporation in New York.

  Managerial decision making - nuclear power

What cognitive mistakes might be made by the negotiators in this case and how could these mistakes be overcome in order to reach an acceptable agreement?

  Illustrate what provisions of the securities law

Explain why is Mr. Khosrowshahi trying to change the culture and structure at Fuji and Marine Insurance Co.? Explain. Illustrate what provisions of the securities law will probably be the basis for a class- action lawsuit by the stockholders?

  Discuss the advantages of face-to-face interviewing

Discuss the advantages as well as disadvantages of face-to-face interviewing. What is essential for the success of this method?

  Set of personality characteristics

Each job requires its own skill set of personality characteristics. Why? Why people who are always optimistic end up getting everything they want?

  Discuss the ethical issues goggle was grappling

Discuss the ethical issues Goggle was grappling with in making its decision? If you were the CEO of Google, would you have made a different decision?

  How does this work at the workplace

How does this work at the workplace and what is the significance of prototyping? Would prototyping work in the workplace? Explain.

  How do organizations decline

Why do organizations grow? How do organizations decline?

  Explain the opposite viewpoint of the proposed solution

Challenge the solution(s) by focusing on the opposite viewpoint of the proposed solution(s). In this situation you may wish to consider items such as

  Method promote to attract competitive workforce

Evaluate and identify three (3) methods or guidelines a personnel manager should promote in order to find and attract a competitive workforce.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd