Business Finance Homework Help

Background information:

•Specialty bookstore and coffee shop

•You and 2 silent partners own the company (they finance, but do not have management responsibilities).

•Sales declined during the recession, but you managed to keep your two full-time managers, while other companies made layoffs.

•The two managers picked up more hours (did not get overtime pay since they are salaried) to cover a reduction in the number of part time staff.

•Your sales have gone back up and you are looking to hire additional part-time workers, BUT…

•Your silent partners are not pleased with profits.

•They propose firing one of your two full-time managers and hiring more part-time employees to save on wages and benefits. This will ultimately increase profits.

•If you adopt the partners plan, you would be down to one full-time manager.

•This manager would be picking up extra work and would manage the store alone.

•The silent partners do not foresee customer service and satisfaction being impacted.

•Of course, you do not want your decision to upset your partners (the ones financing the business).

What do you do? Do you please your shareholder and fire your employee?

Question: What do you think are the concerns of the silent partners are? Explain this situation from their point of view. You want to explain to the silent partners that you fully understand what their main concerns and motivations are. You are not trying to argue against them or dismiss their concerns in your answer to this question. Define what the issues and concerns are of the silent partners, regardless of what decision you ultimately reach in the end.

Word requirement: at least 200 words.

Requirement:

1. Use topic sentences when answering the question.
2. Answers must be centered around a course concept. check: https://drive.google.com/drive/folders/1iTfGJ9fuHA…
3. Use outside sources to provide evidence that defends, strengthens, or supports your position