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?
> 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.
> 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.
> 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?
> 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?
> What tests must an invention pass in order to receive a patent?
> What rights does owning a patent protect? How do you get this protection?
> What chapters of bankruptcy law accomplish these objectives?
> How are liquidation and reorganization used as different approaches to bankruptcy?
> How can profitability ratios allow insight into the effectiveness of management? Liquidity ratios? Activity ratios? Leverage ratios?
> Think of transactions you have entered into in the past: whom were you agreeing with, what was the agreement about, and what were the terms? When did you have a written contract? When was an oral contract in place? Use several examples to analyze: buying
> Name and explain the four elements that a contract must have to be valid.
> Compliance with government regulations is sometimes burdensome for small business owners. What can they (and you) do to change the laws and regulations that influence small business in order to lessen the burden?
> What licenses are required by the owner of a small business?
> List and briefly explain the laws that protect people in the workplace.
> How does the Federal Trade Commission protect consumers?
> Are the antitrust laws established in the late 1800s and early 1900s still pertinent in the twenty-first century? Why or why not?
> Why would an entrepreneur be concerned about harvesting a business that has not yet been started?
> How is small business management different from entrepreneurship?
> Describe the significance of triggering events in entrepreneurship. Give examples.
> You need to write a business plan for a startup business. How do you come up with the numbers for your pro forma financial statements? Do you just guess and make them up? (Hint: the process starts with a sales forecast.)
> As you have read about ISO 9000 certification in both Chapter 15 and this chapter, it is both expensive and time-consuming. Describe what type of small business should pursue such certification, assuming that not every manufacturing business should.
> This chapter concentrated on both productivity and quality. In running your small manufacturing business, can you increase both, or are they mutually exclusive?
> What type of small business would benefit from having ISO 9000 certification?
> Define six sigma both technically and as used as a business standard.
> Give examples of products that would be better suited to each of the dispatching rules.
> Explain the difference between forward and backward scheduling.
> How can ergonomics be tied to productivity? To motivation? To Maslow’s hierarchy?
> Define productivity.
> What is the difference between flexible production and mass customization?
> What would happen if the feedback were not included?
> Assets = Liabilities + Owner’s Equity. How would you restate this equation if you wanted to know what your liabilities were? Your owner’s equity?
> What would happen if the control system were not included?
> Discuss the elements of an operations management system.
> Give examples of stress and distress.
> Are you a good manager of time in your personal life? How will this affect your ability to manage your time as a business owner?
> What is motivation? Can managers really motivate employees?
> As a business owner, in which of the leadership attributes discussed in the text are you the weakest? How could you help yourself improve in this area? How could others help you? What is your strongest skill?
> What are positive and negative aspects of delegation?
> How can the owner of a small business apply Maslow’s hierarchy of needs to working with employees?
> Review the five stages of business growth. Which of these five would you aspire to for your own business. Be prepared to justify your answer.
> Which exit strategy discussed in the chapter would you consider ideal? What would a downside of that strategy be?
> How can financial records allow you to identify problems in your business?
> We read in this chapter that entrepreneurs try to build competitive advantages for their businesses by being unique. How will these partners know if their Fluzzle Tube idea will stand out, or sink? 2. Put yourself in the position of Whitehead and De Arko
> This Concept Module described five stages a business goes through as it grows. How would management style need to change from stage to stage.
> Discuss some of the skills or characteristics that are needed by a manager in the startup phase of a business that differ from those needed later to manage a larger, established firm.
> Refer to the chapter opening story. List two differing activities in which each manager engages.
> Give examples of efficiency and effectiveness in managing your everyday life.
> How would promotional mix decisions change for a small business that is expanding into a foreign market?
> Explain the ratchet effect on sales.
> Discuss the personality traits that a good salesperson should have. What traits would detract from the personal selling process?
