What is typically included in a franchise?
> What is a firm’s strategy? What is the foundation on which the firm’s strategy is built? Why is an effective strategy important for the new small business?
> Discuss how the firm’s mission helps the new business venture. What does it target? Why?
> What is a mission statement? When should it be developed? How does it compare to the strategy of the new small business?
> What are economic rents? What do they imply?
> What is a first mover advantage? What are some advantages to an entrepreneur who has a first mover advantage?
> What is a sustainable competitive advantage? Why is it important for a new entrepreneurial business owner to gain it? Be specific.
> Summarize why entrepreneurs utilize the technique known as resource-based analysis.
> Explain why new entrepreneurial business owners select or target their customers. What are the disadvantages associated with not choosing the customers?
> Discuss how industry trends shape the long-term perspective of the industry. Why?
> What makes a good mission statement?
> What is an exit barrier? Discuss why small business owners include them in their entrepreneurial business planning.
> New business owners learn to assess the external environment. List the eight critical steps that new business owners use to assess the external environment.
> What is a substitute? Why do new entrepreneurial business owners evaluate substitutes and the potential impact they have in the market?
> Define a fragmented market. Why is it important for entrepreneurs to understand them?
> Summarize the similarities and differences between usual and unique parts of businesses. Provide an example for each term.
> Describe how unique products can develop into competitive advantages.
> Explain why it is important for entrepreneurs to evaluate their competitors.
> What is a deficit analysis?
> How can new small business owners finance their new entrepreneurial businesses? What do they do if they do not have enough money to initiate their business operations? List at least three ways individuals can acquire the money they require to start a new
> What is business risk? What are the three threats that impede entrepreneurial venture success? Discuss why potential entrepreneurs should be concerned about business risk.
> How should a mission statement guide the actions of employees?
> Summarize the five important headings that a potential entrepreneurial owner should consider when completing a gap analysis. Can you think of additional items to consider?
> Summarize the six ways that new potential entrepreneurs identify business opportunities in the marketplace.
> What is brainstorming? Why is it important to the new entrepreneurial owner?
> What is a harvest plan? Why is it important to consider a harvest plan?
> What do new entrepreneurs plan prior to the establishment of their new small business?
> Describe the differences between entrepreneurial businesses and venture capital-backed firms.
> Discuss the characteristics of an entrepreneurial business start-up.
> What does the government do to enhance the success of SMEs? Why?
> In reference to the timeline of business in the United States, why was the period of the Great Depression harder on smaller business than on larger businesses?
> Why does “profit as a goal” present an ethical challenge to new business owners?
> What is the value of a mission statement for a new organization?
> How have entrepreneurial businesses impacted the growth of the United States?
> Explain what is meant by the science and the art of starting and managing a business.
> Beyond some classic examples (Steve Jobs, Dlon Musk, Michael Cell, Larry Page, and Sergey Brin), name several entrepreneurs who have grown their businesses into major organizations.
> How do entrepreneurial businesses impact the economy?
> List some triggers that push people into starting a new business.
> How do you think personality differences matter in the starting of a business?
> How does bounded rationality affect the way an entrepreneur determines what type of business to start?
> Is there a minimum level of risk tolerance required to start a business? Explain.
> Why is founder involvement in a new venture so critical to its success?
> Which supports do you believe you might rely on the most if you started your own business?
> What elements are in a competitive map?
> How does the lack of “slack” resources impact new ventures?
> What differentiates an entrepreneurial business from one that is a venture-backed business?
> Once you actually busy the business, how do you make sure that you are successful?
> How do you locate a business that you would like to purchase?
> Why would someone buy an existing business?
> What is the FDD? What are its major provisions?
> What are the questions a person should ask herself before she starts a franchise?
> What is the benefit of buying a franchise versus starting your own business? Are there any drawbacks?
> How do the franchisee and franchisor differ?
> How would you recommend developing a complete analysis of the competitors for a new business?
> What is risk tolerance? Why should potential entrepreneurs analyze their risk tolerance?
> Borzani Corporation reported net income of $52 million for 2018. Depreciation expense for the year totaled $18 million. Borzani depreciates plant assets over eight years using the straight-line method with residual values of zero.Borzani paid $144 millio
> Nick Sullivan and Donna James have written a computer program for a virtual reality video game system; it is expected to be more popular than any other gaming system currently on the market. They need additional capital to market the product, and they pl
> The Cheesecake Factory Incorporated (NASDAQ: CAKE) is publicly held and had more than 93 million common shares outstanding as of the end of the 2016 fiscal year. The company has preferred stock authorized but did not have any preferred stock issued. Duri
> The stockholders’ equity of Bowling Green Uniforms as of December 31, 2018 and 2017, follows: Requirements: 1. What is the par value of the common stock? 2. How many shares of common stock were outstanding at the end of 2018? 3. As of
> Pueblo, Inc., ended 2018 with 8 million shares of $1 par common stock issued and outstanding. On December 31, 2018, additional paid-in capital was $16 million, and retained earnings totaled $38 million. â– In April 2019, Pueblo issued 6
> Hubble Corporation reported the following stockholders’ equity data (all dollars in millions except par value per share): Hubble earned net income of $2,930 during 2018. For each account except Retained Earnings, one transaction expla
> Use the Parker Networking Solutions data in E10-92 to show how the company reported cash flows from financing activities during 2018. Data from E10-92:
> Parker Networking Solutions began operations on January 1, 2018, and immediately issued its stock, receiving cash. Parker’s balance sheet at December 31, 2018, reported the following stockholders’ equity During 2018,
> Toledo National Bank purchased land and a building for the lump sum of $6 million. To get the maximum tax deduction, the bank’s managers allocated 80% of the purchase price to the building and only 20% to the land. A more realistic allocation would have
> West park Video, Inc., declared bankruptcy. The company reported these figures: Requirement: 1. Evaluate the trend of Westpark Video’s results of operations during 2016 through 2018. Consider the trends of sales, gross profit, and net
> Annual cash inflows from two competing investment opportunities are given. Each investment opportunity will require the same initial investment. Requirement: 1. Assuming a 12% interest rate, which investment opportunity would you choose?
> Suppose Chic Fashions, a specialty retailer, had these records for evening gowns during 2018: Assume that Chic sold 112 gowns during 2018 and uses the LIFO method to account for inventory. Chic’s income tax rate is 35%. Requirements:
> The Cheesecake Factory Incorporated (NASDAQ: CAKE) opened its first New York City restaurant. The new Cheesecake Factory is in Queens and is 8,850 square feet and seats 240 guests. Rather than selling franchises, Cheesecake Factory owns and operates all
> ShipFaster Corporation provides a broad portfolio of transportation, e-commerce, and business services. ShipFaster reported the following information in its most recent annual report: Property and equipment (excerpted):For financial reporting purposes,
> Transcontinental is a major telecommunication conglomerate. Assume that early in 2018, Transcontinental purchased equipment at a cost of 6 million euros (€6 million). Management expects the equipment to remain in service for four years and the estimated
> During 2016, Coalmont, Inc., changed to the LIFO method. Suppose that during 2017, Coalmont changed back to the FIFO method. In 2018, the company switched back to LIFO again. Requirements: 1. What would you think of a company’s ethics if it changed acco
> For each of the following situations, identify the inventory method that you would use; or, given the use of a particular method, state the strategy that you would follow to accomplish your goal. a. Inventory costs are increasing, and the company prefers
> Jasper Corporation is nearing the end of its first year of operations. Jasper made inventory purchases of $745,000 during the year, as follows: Sales for the year are 5,000 units for $1,200,000 of revenue. Expenses other than cost of goods sold and in
> The Cheesecake Factory Incorporated (NASDAQ: CAKE) operates over 200 restaurants and two bakeries in the United States. In its two bakeries, it bakes and prepares more than 70 desserts, both for its own use in its restaurants and for sale to a wide var
> Pickering Financial Management believes that the biotechnology industry is a good investment and is considering investing in one of two companies. However, one company, Bright World, Inc., uses the FIFO method of inventory, and another company, BioTech,
> Thompson Technology, Inc., and Beaudoin Catering Corporation are asking you to recommend their stock to your clients. Because Thompson and Beaudoin earn about the same net income and have similar financial positions, your decision depends on their stat
> Annual cash inflows from two competing investment opportunities are given. Each investment opportunity will require the same initial investment. Requirement: 1. Assuming a 12% interest rate, which investment opportunity would you choose?
> The 2018 income statement and the 2018 comparative balance sheet of Ghent River Camp, Inc., have just been distributed at a meeting of the camp’s board of directors. The directors raise a fundamental question: Why is the cash balance so
> The Cheesecake Factory has thousands of guests each day who pay immediately after finishing their meals. The Cheesecake Factory also spends cash to pay for the food it serves, employees’ wages, and other expenses. The company might also
> The December 31, 2017, balance sheet and the 2018 statement of cash flows for McFarland Corporation follow: Requirement: 1. Prepare the December 31, 2018, balance sheet for McFarland
> Delorme Specialties reported the following at December 31, 2018 (in thousands): Requirement: 1. Determine the following items for Delorme Specialties during 2018: a. Gain or loss on the sale of property and equipment b. Amount of long-term debt issued f
> Luxe, Inc., reported the following in its financial statements for the year ended May 31, 2018 (in thousands) Requirement: 1. Determine the following cash receipts and payments for Luxe during the fiscal year ended May 31, 2018 (enter all amounts in th
> Greensboro Golf Corporation’s long-term debt agreements make certain demands on the business. For example, Greensboro may not purchase treasury stock in excess of the balance of retained earnings. Also, long-term debt may not exceed stockholders’ equity,
> Portland Manufacturing bought three used machines in a $209,000 lump-sum purchase. An independent appraiser valued the machines as shown: What is each machine’s individual cost? Immediately after making this purchase, Portland sold Ma
> Suppose United Cable and Entertainment, Inc., is having a bad year in 2018, because the company has incurred a $4.9 billion net loss. The loss has pushed most of the company’s return measures into the negative column, and its current ratio dropped belo
> To follow are The Cheesecake Factory Incorporated’s financial statements from its 2016 Form 10-K. The preceding financial statements have been condensed and adapted for educational use and should not be used for investment decisions.
> An incomplete comparative income statement and balance sheet for Ivy Corporation follow: Requirement: 1. Using the ratios, common-size percentages, and trend percentages given, complete the income statement and balance sheet for Ivy for 2018. Additiona
> What is the present value of bonds with a face value of $6,000, a stated interest rate of 7%, a market rate of 5%, and a maturity date three years in the future? Interest is paid semiannually. a. $5,614 b. $7,060 c. $6,000 d. $6,330
> The following data (dollar amounts in millions) are from the financial statements of Hill Corporation: Requirement: 1. Complete the following condensed income statement. Report amounts to the nearest million dollars.
> The following data (dollar amounts in millions) are taken from the financial statements of Quantrill Industries, Inc.: Requirement: 1. Complete the following condensed balance sheet. Report amounts to the nearest million dollars.
> Mines paid $425,000 for the right to extract ore from a 250,000-ton mineral deposit. In addition to the purchase price, Mineral Mines paid a $110 filing fee to the country recorder, a $2,000 license fee to the state of Colorado, and $55,390 for a geologi
> Concord Truck Company is a large trucking company. The company uses the units-of-production (UOP) method to depreciate its trucks. To follow are facts about one Mack truck in the company’s fleet. When this truck was acquired in 2018, the tractor-trailer
> On January 2, 2018, Ellet Furniture purchased display shelving for $8,900 cash, expecting the shelving to remain in service for five years. Ellet depreciated the shelving on a double-declining-balance basis, with $1,100 estimated residual value. On Augus
> Near the end of 2016, The Cheesecake Factory entered into a new loan agreement with its creditors. This new four-year agreement provided loan commitments totaling up to $200 million. The commitments enable The Cheesecake Factory to borrow funds as needed
> The Juice Company reported the following comparative information at December 31, 2018, and December 31, 2017 (amounts in millions and adapted): Requirements: 1. Calculate the following ratios for 2018 and 2017: a. Current ratio b. Debt ratio 2. During 2
> The top management of Palermo Marketing Services examines the following company accounting records at August 29, immediately before the end of the company’s year, August 31: 1. Suppose Palermo’s management wants to a
> Presley Pizza bought a used Ford delivery van on January 2, 2018, for $22,000. The van was expected to remain in service for four years (80,000 miles). At the end of its useful life, Presley management estimated that the van’s residual value would be $2,
> During 2018, Chang’s Book Store paid $481,000 for land and built a store in Newark, New Jersey. Prior to construction, the city of Newark charged Chang’s $1,200 for a building permit, which Chang’s paid. Chang’s also paid $15,200 for architect’s fees. Th
> Athens Company completed these long-term equity investment transactions during 2018: 1. Journalize Athens Company’s investment transactions. Explanations are not required. 2. Assume the Technomite stock is Athens Companyâ€&
> Assume Karo Products, Inc., purchased conveyor-belt machinery. Classify each of the following expenditures as a capital expenditure or an immediate expense related to machinery: a. Periodic lubrication after the machinery is placed in service b. Special
> Sugar Ridge Manufacturing bought three used machines in a $167,000 lump-sum purchase. An independent appraiser valued the machines as shown: What is each machine’s individual cost? Immediately after making this purchase, Sugar Ridge s
