Question 02 (5+5 points) (PLO-06, CLO-02) Ali was a real craftsman when it came to being a machinist. Ali had learned almost all that he knew from Daud, his first and only employer. Ali was married and had three young children. He was 33 years old and had worked for Daud ever since he retired from Army. In 12 years, Ali had polished his skills under the watchful and critical eye of Daud. Daud was quick to recognize Ali's talent for the trade. Ali had a positive attitude about learning and displayed a drive for perfection that Daud admired. Daud's Machine Shop was a successful small business. Its success was based mostly on the reputation for quality that had been established over its 42 years in operation. Daud had started this business in his late twenties. Now the business was a success, but Daud remembered the early years when he had to struggle. Daud wanted the business to continue to produce the highest quality craftsman products possible. On a Friday evening, he called Ali into his office at closing time, poured him a cup of Tea, and began to talk with him about the future. Ali, I am getting old and I want to retire. It has been 42 years of fun, but these old hands need a rest. In short, I would like you to buy the business. I feel that your heart is in this craft and that you would always retain the quality that I have stood for." Ali was taken back by the offer. He, of course, knew Daud was getting older, but had no idea Daud would retire. Ali had only 420000 PKR in the bank. Most of Ali's salary went for the normal costs of rearing three children. Daud knew Ali did not have the money to buy the business in cash, but he was willing to take a portion of the profits for the next 15 years and a modest initial investment from Ali. Ali had, for the past four years, made most of the technical decisions in the shop. Ali knew the customers and was well respected by the employees. He had never been involved in the business side of the operation. He was a college graduate but had never taken business courses. Ali was told by Daud that even after deducting the percentage of the profits he would owe under the sales agreement, he would be able to almost double his annual earnings. a. Which entrepreneurial characteristics does Ali must have that may be important to his success? b. How can he introduce corporate entrepreneurship into his business and which legal form of business is this venture going to be