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Jack and Jill are best friends and have decided to start a joint venture where they transport the elderly and the disabled to various appointments or to run errands. They name the business J and J's Transportation. Jack and Jill decided to split all expenses and all profits equally. They write up the agreement on a piece of paper and they both sign it. One of the first major expenses was a van. Jill's credit is horrible so Jack agrees to use his credit for the vehicle. Although Jack's credit was used to purchase the vehicle, the title was put in the name of J and J's Transportation and listing both Jack and Jill as owners. Each month both Jack and Jill each contribute 50% toward the note on the van.
Six months after they start their business, things appear to be going well. They have several clients and are gaining more every day. One day, Jill receives a call from the finance company who financed the van indicating that they are coming to repossess the vehicle because they have not received a payment in over 3 months. Jill is furious and confronts Jack. Jack tells her not to worry and that he will get it caught up. He explains that he needed the money to catch up on his rent. Jack also tells Jill that she should not worry because everything is in the business name and that the finance company cannot do anything to her since she had nothing to do with his actions. Jill doesn't believe Jack and thinks that she should consult an attorney. After all, they only formed a general partnership with an agreement on paper.
Should Jill be worried? Why or why not? Could Jack and Jill have been better protected under a different business structure? If so, which business structure do you think would have been best and why?
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define organizational development and apply to work environmentdefinition of organizational development.how dowould you
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