You Make the Call-Situation 1

question 10

Essay

You Make the Call-Situation 1
Linda McMahan was getting numerous compliments on a handbag she carried to The University of Texas events. She had purchased the handbag, which carried the UT name, at a local store but felt the quality of the bag was poor. She and her sister-in-law, Sue Craft McMahan, decided to become partners and produce and sell high-end handbags emblazoned with the college logo.
The pair designed four different types of bags-a large totebag, a smaller bag, a crescent-shaped handbag, and a "bolder" game-day bag-all marked with The University of Texas emblem. Early responses to the product line were overwhelming. They've now set their sights on other big name schools.
(Source: Nichole L. Torros, "Smells Like School Spirit," Entrepreneur, December 2003, p. 132.)

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Definitions:

Implied Authority

A form of authority of an agent that is not explicitly stated but is assumed to be granted as part of the agent's duties.

Winding Up

The process of closing down a company by settling its liabilities and distributing any remaining assets to its shareholders.

Converting Assets

The process of changing assets from one form to another, often from non-liquid assets into cash or cash equivalents.

Confession Of Judgment

A legal agreement in which a debtor consents to a judgment against them, allowing the creditor to obtain a judgment without undergoing the standard court process.