Reference no: EM132274292
Bill Jobs has decided to start a computer company called CompU in Joplin. He knows that many MSSU students, who are now required to own and operate a personal computer, are having difficulty setting up their computers, accessing various materials from MSSU’s network and from the internet, and installing new programs as they become available. Bill’s plan is to provide a service to the students by helping students set up their computers, show them how to access various databases, and offer an e-mail help desk for any problems that arise. Bill also wants to develop a website that will be a seamless portal to the internet and the campus intranet.
If things go well, Bill plans to sell computers with all the required software preinstalled to students, and develop the website that includes links to various businesses and services that students like, and to offer advertising services (and charge for the links) to local businesses. For example, a student could use the web site to order pizza delivery while studying for a financial management exam.
Once Bill has established CompU and developed the necessary operating procedures, he plans to expand to other colleges and universities in the area, and eventually go nationwide. At some point Bill plans to take CompU public with an IPO.
When Bill first begins CompU, if he is the only employee and only his money is invested in the company, would any agency problems exist? As he expands and hires additional people at CompU, might agency problems arise? When Bill first begins, what type of business organization will CompU be?
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