Product details

Mr Shaaban Juma was working as a financial controller with a small aircraft firm in Nairobi, Kenya. In December 2001, one year after finishing his master of business administration (MBA) degree, he found that his potential was not being fully realised in the firm. He was considering quitting employment to start his own accounting firm. This case is intended for fourth year bachelor of commerce students taking accounting, finance or the entrepreneurship option. It is suitable for the subjects of financial management, advanced taxation or entrepreneurship skills. For analytical purposes the problem will be stated without a definite solution provided. Students will be required to analyse the data for all the alternatives and relate it with the identified experience in the case. They will also develop a decision criteria an action plan and an implementation plan. The case focuses on the consideration of the choice between continuing in employment and quitting to run an accounting firm. This will involve an analysis of the benefits expected from employment against the professional business. Using the case, students should be able to: (1) apply time value of money analysis tools; (2) evaluate the taxation differentials between employment and self-employment; and (3) determine the factors to consider in choosing between employment and self-employment. The case writing process was financed by the Ministry of Trade and Industry of the Government of Kenya through an IFC / IDA credit to support micro, small and medium enterprises (Project P085007). The process was managed by the Management Education and Research Consortium.