Give an example of a type of small business that would have the greatest chance of succeeding in each location type. State your reason for selecting that particular business type by giving specific advantages.
> Refer to the Consolidated Statements of Earnings in the Campbell Soup Company annual report in the appendix. Required: a. Calculate the gross profit ratio for each of the past three years. b. Assume that Campbell’s net sales for the first four months of
> From the following data, calculate the Retained Earnings balance as of December 31, 2023:
> At the beginning of the current fiscal year, the balance sheet of Cummings Co. showed liabilities of $657,000. During the year, liabilities decreased by $108,000, assets increased by $231,000, and paid-in capital increased by $30,000 to $570,000. Dividen
> A number of financial statement captions are listed in the following table. Indicate in the spaces to the right of each caption the category of each item and the financial statement(s) on which the item can usually be found. Use the following abbreviatio
> Total assets were $58,000 and total liabilities were $35,000 at the beginning of the year. Net income for the year was $11,000, and dividends of $3,000 were declared and paid during the year. Required: Calculate total stockholders’ equity at the end of t
> Why do entrepreneurs have trouble remaining objective when writing their business plans?
> If successful companies like Pizza Hut have been started without a business plan, why does the author claim they are so important?
> Who should write the business plan?
> Should you write a business plan even if you do not need outside financing? Why or why not?
> Why is environmental analysis more crucial to the small business owner than to larger corporations?
> Write a mission statement for a small business that not only functions as a strategic planning guide but also incorporates the company’s philosophy of social responsibility and ethical standards.
> What does strategic planning mean to the small business owner? How does the size of the organization affect the strategic planning process, and how much input should be sought from outside sources while outlining the strategic plan?
> Goal setting is a major part of the entrepreneur’s business plan. Outline specific methods for setting goals that are realistic, fit into the overall mission of the company, and can be related to the strategic planning process that is in place at the org
> What is the value of competitive analysis to the small business owner? What sorts of things should you know about your competition, and what analytical methods can you use to find out this information?
> You are an entrepreneur and wish to perform a “self-evaluation” of your business environment. How would you go about this task? Be specific about what you hope to discover through the evaluation of your employees, product, management, and so on.
> From strictly a small business perspective (not social or emotional perspectives), why is diversity important?
> Define the purpose of a code of ethics, and write a brief code that would be suitable for a small business.
> Although a certain practice may be widely accepted in the business community and be perfectly legal, does that necessarily mean it is always moral? Qualify your answer with examples.
> Discuss the four groups of laws that generally regulate business activity in this country, and give some historical background on the major laws that affect all entrepreneurs today.
> How can a small business show that it is socially responsible? Think of evidence of social responsibility (like sponsoring a Little League team) that a small business can demonstrate.
> Explain how cultural differences between countries can have either a positive or negative effect on an entrepreneur who is pursuing a contract either outside the United States or with persons of different ethnic backgrounds in the United States.
> Write a brief summary of the connection between social responsibility, ethics, and strategic planning in a small business setting.
> What do entrepreneurs do that distinguishes them from any other person involved in business?
> Imagine that the principal from the high school you attended (and graduated from) called to invite you to make a presentation to the newly founded entrepreneurship club. What would you tell this group of high school students about owning their own busine
> What problems such as lawsuits, reputation, and public image would GarageTek face if they closed failing franchises? 2. Was shuttering the failed franchises the right move for Shuman? What are his other options?
> If you were in Rappaport and Harrison’s situation, how would you change your business plan for the future? 2. Is Flocabulary’s problem a) the wrong target market, b) a bad product, c) too few products, or d) something else? What are their alternative
> Large businesses depend on small businesses. Why?
> Using the strategic planning process discussed in this chapter, what was the core problem to be solved by Millennium? What are all of the potential alternative solutions to that problem? 2. Apply Porter's Five Forces Model to this case. 3. What would you
> What alternatives does the Pastorius family have to resolve their conflict? 2. What operations management principles would apply to running a microbrewery? 3. What would your recommendation be to Tom and Mary Beth?
> Put yourself in Larry Cohen's position. What would you see as your most immediate problem? What are your long-term problems? 2. Would you keep Aaron Kamins as CEO? Why or why not? If you fire him, who would do the job? 3. What do you recommend Cohen do t
> Danny Stein faces several problems with eMusic, some with conflicting ends. What problems do you see? 2. What possible alternative solutions exist to the problems identified in question 1? Consider the impact of each alternative on other areas of the bus
> Should Hallam come up with some new products or continue to come up with new products or continue to concentrate on how tubs? 2. If new products are the answer, what should they be? 3. What are your recommendations to revive Dimension One?
> The CEOs lived on different continents and barely knew each other. Could they make a deal work? 2. What do you believe the biggest barriers to this two-way business purchase would be? 3. What would you recommend to overcome those barriers?
> Choose three foreign markets and find the customs and courtesies for greetings in those countries (possibly using the Internet as a source).
> What countries are riskier markets for small businesses to enter? Why? Where would you find information regarding political stability, financial risks, and cultural differences?
> Imagine that you own a small manufacturing business. Identify the product that you produce and a foreign market that appears to represent an opportunity. What country would pose a risk?
> Name a form of countertrade and when it would be an appropriate strategy.
> How would you show that small business is becoming a more important part of the economy?
> What does the Eximbank do for potential exporters? For importers?
> Discuss the differences and similarities between domestic- and foreign-based intermediaries.
> Discuss the difference between and the advantages and disadvantages of indirect and direct exporting.
> Why is finding financial assistance for international expansion more difficult than finding such help for domestic expansion?
> What information should a small business owner gather before deciding to export products?
> What is the advantage of a strategic alliance over direct investment when entering a foreign market?
> Why would a small business choose to license its products in other countries?
> Compare and contrast the advantages and disadvantages of buying, building, or leasing space for a small business.
> What is the ADA, and what is its impact on the small business owner’s site layout and design plan?
> What are the main types of layout plans, and what should the entrepreneur focus on when designing the layout plan for a new business?
> Define outsourcing, and describe its impact on small business.
> What are the three location types and their subcategories.
> The old adage of the importance of “location, location, location” applies as well in cyberspace as it does for brick-and-mortar businesses. How does an Internet-based business influence its “location”? Which of the principles of location discussed in thi
> What is the difference between a secured loan and an unsecured loan?
> What are some considerations that should be taken into account if business is to be conducted in a foreign market?
> Explain the importance of knowing the legal requirements of an area before attempting to open a small business.
> When choosing a location for a new business, what are the most important criteria for the entrepreneur to consider? Explain the connection between type of business and location.
> Why should the small business owner consider the demographics of an area when choosing a location for opening a new business? Name some sources of demographic information that are valuable tools to use in this evaluation.
> How can your business location affect customers’ image and perception of your business?
> What is the sales conversion index (SCI), and why should the small business owner become familiar with the way it is calculated and the information to be obtained from it?
> Why would a small business flourish in one area of the United States but fail in another region?
> How would you define small business?
> How can a small business owner create competitive advantage with a channel of distribution?
> What are the advantages of borrowing through the SBA?
> What is pledging accounts receivable?
> What kind of businesses would depend on floor-planning?
> How does a small business’s capital structure change over time?
> Of the approximately 534,000 companies that started in the year 2010, only 2,749 received funding from venture capitalists. If just this small percentage received venture capital, then why do small business magazines print such a disproportionately large
> Discuss the types of interest that may apply to a loan.
> How are private placements and public offerings different?
> Why do suppliers extend trade credit to other businesses? What are the advantages and disadvantages of using trade credit?
> Name a company that seems large but might be classified as small because it has relatively little impact on its industry.
> What are the differences between debt funds and equity funds?
> What are the 5 Cs of credit, and how do lenders use them?
> Define “initial capital requirements.” How can you determine these?
> Describe four causes of small business failure. How does the quality of management relate to each of these causes?
> The text compares the failure rate of small business with the divorce rate in marriage and student failure rate in college. Are these fair comparisons?
> Predict the future of small business. In what industries will it be involved? What trends do you foresee? Will the failure rate go up or down? Will the importance of small business increase or decrease by the year 2020?
> What is the difference between a job analysis and a job description?
> Describe the techniques that a business with which you are familiar has used to prevent business failure.
> Kevin Semcken identified some possible alternative solutions to his financing problem. Did he come up with all possible alternatives, or can you think of some more? 2. Do you agree with board member Rob Cascella, who told Kevin to concentrate on producin
> Put yourself in Ha's situation, and analyze the pros and cons of his workers' proposition. 2. Since Hawaii is so isolated and Ha sells bananas locally, why is he affected by international competition? 3. What would you recommend the family running the Ha
> Can Fried really say "no" to the big-box retailers? Why or why not? 2. What do you think Lance should do?
> Dogswell's marketing plans were ambitious, but were not working. What is their primary problem? 2. Would money from the new investors solve the problem? What other options do they have? 3. What do you recommend Giannini do to save the company?
> Explain the difference between macro-aging and micro-aging accounts receivable schedules.
> If you were setting up open-book management in your business, what would you teach employees to make it work?
> Cash flow is more important than profit for a small business. Why? If your income statement shows a profit at the end of the month, how can anything be more important?
> Cash flow is described as the lifeblood of a business. How would you explain this description to someone who does not understand business finance?
> Define the term “leverage” as it applies to accounting.
> Why is franchising important in today’s economy?
> Why would you prefer to buy a franchise rather than start a new business or buy an existing business?
> You are an investor in small businesses, and you have three business plans on your desk. Which of the following potential business owners do you think would be the best bet for an investment (if you could pick only one)?
> Talk to the owner of a small business. Did he or she write a business plan? A strategic plan? If he or she received any assistance, where did it come from?
> What are the differences between hard and soft issues during a job orientation? Is one more important than the other?
> Hiring an employee is a big step for a small business. How can you make a wise hiring decision if so many limitations are put on the interview questions you can legally ask?
> How is the use of temporary employees different from employee leasing? What are the advantages and disadvantages of each?
> The sales projection for your retail business is $650,000. The industry average for the asset turnover ratio is five. How much inventory should you plan to stock?
> When would you, as a small business owner, prefer to receive a résumé rather than an application form?
> As a young entrepreneur, you may soon be in the position of hiring one or more of your college friends in your own business. What are the advantages of hiring your friends? What are the potential pitfalls?
> Discuss three key pieces of legislation that are used to prevent job discrimination.
> What is the difference between a copyright and a trademark? Between a trademark and a brand?
> What risk does an inventor assume when filing for a patent for an invention?
