Questions from General Entrepreneurship

Q: Laura Simpson just took a job with Cisco Systems in San Jose

Laura Simpson just took a job with Cisco Systems in San Jose, CA. One of the attractions of this job is the stock option plan Cisco offers to its employees. What is meant by the term stock option? Why...

Q: Suppose a friend of yours showed you the pro forma income statements

Suppose a friend of yours showed you the pro forma income statements for his start-up and exclaimed excitedly that during the first three years of operations his firm will make a net income of $150,00...

Q: Kate Snow just retired from a career with Walmart, cashing out

Kate Snow just retired from a career with Walmart, cashing out a sizable retirement fund at the time of doing so. To start a second career, she is looking at the possibility of buying three different...

Q: Chipotle Mexican Grill is a publicly traded company. Calculate the firm’s

Chipotle Mexican Grill is a publicly traded company. Calculate the firm’s price-to-earnings ratio (P/E). What does Chipotle’s P/E ratio tell you about investors’ expectations regarding the company’s g...

Q: Jorge Martinez is thinking about buying an existing printing business and has

Jorge Martinez is thinking about buying an existing printing business and has been carefully studying the records of the business to get a good handle on its historical financial performance. Jorge he...

Q: How can finding a gap in the marketplace create a business opportunity

How can finding a gap in the marketplace create a business opportunity?

Q: Casey Cordell is the owner of a digital photography service in Madison

Casey Cordell is the owner of a digital photography service in Madison, WI. The company has been profitable every year of its existence. Its debt ratio is currently 68 percent, its current ratio is 1:...

Q: What items on the left side (or top) and what

What items on the left side (or top) and what items on the right side (or bottom) of a firm’s balance sheet should receive the greatest scrutiny? In regard to each of these items, what are the most im...

Q: Suppose a colleague of yours is gearing up to write a business

Suppose a colleague of yours is gearing up to write a business plan for a business she intends to start. She told you she plans to prepare the financial statements first, to get that job out of the wa...

Q: Currently, Ann Schafer is a sales representative for The Pampered Chef

Currently, Ann Schafer is a sales representative for The Pampered Chef, a direct sales organization which sells kitchen utensils and related products. Ann, who lives near Houston, Texas, is thinking a...