CI was a retail chain specializing in the sale of industrial equipment and supplies to commercial contractors in British Columbia: Accounting For Decision Making Assignment, UON, Malaysia
|University||University of Nottingham (UON)|
|Subject||Accounting For Decision Making|
CI was a retail chain specializing in the sale of industrial equipment and supplies to commercial contractors in British Columbia and Alberta. The business was owned by Martha McMaster, which she founded as a family business in 1978 in partnership with her husband Al Johnson. Johnson died in 1988 in an auto accident, and since then, McMaster has been managing the business alone quite successfully as the sole shareholder.
In early 2001, McMaster suffered a debilitating stroke, which required that she be institutionalized. Her only child, Dr. Frank Johnson, was unable to take over the operation of the business due to a demanding medical career as a heart surgeon in Hamilton, Ontario. Jack Venables, an experienced executive in the industry, was hired to manage CI for the family and was required to supply financial statements to Johnson each year, along with a written summary of operations.
Venables managed the business and reported to Johnson as contracted. According to the financial statements, the company was very successful in both 2001 and 2002, with all profits being retained to fund future growth. In late September 2003, Johnson received a phone call from one of the office staff indicating that Venables had not shown up to work for a week and that no one seemed to know where he was. A police investigation indicated that Venables had left the country, but that his exact whereabouts were unknown.
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