Ken Jones wants to start a small business and has asked his uncle to lend him $1

Question

Ken Jones wants to start a small business and has asked his uncle to lend him $10,000. He has prepared a business plan and some financial statements that indicate the business could be very profitable. Ken is afraid his uncle will want some ownership in the company for his investment, but Ken does not want to share what he believes will be a hugely successful company.  

What are the ethical issues Ken must face as he prepares to present his business plan to his uncle?

Do you think he should try to emphasize the risk of ownership to his uncle to convince him it would be preferable to be a creditor? Why or why not?

Explanation / Answer

There are some eithical issues ken have to face when he asked his uncle to lend him $10000

1) He has think less about the terms and conditions for taking borrowing from his uncle

2) There is some emotion attached related to relationship has effect the decision

3) Some other social factor also considered before to take loan/investment

Yes Jones should try to emphasize the risk of ownership because if he give share in his buisness to his uncle than there is some involvment of his uncle in decision making of business

becuase if he hold some share in buisness than he should disclose all his buisness financial to his uncle that can effect his buiness decisions

so John have to convince his uncle for the not giving ownership share in his buisness he can take money by giving bond or kind of unsecured loan.

Related Questions

Navigate

• Browse (All)
• Browse K
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.