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business
small business management

Questions and Answers of Small Business Management

What are your personal screen inspirations?What lessons do these or other movies provide in running a small business?Every year around Christmas, Susan Schreter takes a refresher course in
In addition to the movies cited in this case, think of other titles for business lessons such as Risky Business, Pirates of Silicon Valley, and Tucker. What lessons do they provide?Every year around
What movies portray leaders who think creatively, who keep their heads, who manage communication, and, as for failure, well, that’s just not an option (a line from Apollo 13)?Every year around
Bearing in mind that the intent of movies is artistic, rather than educational, what movie lessons do you think illustrate the opposite of what a manager should do or say?Every year around Christmas,
Small businesses represent what share of total U.S. businesses?a. 99.7 percentb. 88.2 percentc. 79.1 percentd. 24.3 percent
The coding of businesses that was developed to bring consistency among U.S., Canadian, and Mexican business is calleda. SICb. NAICSc. NERDd. SAE
The replacement of existing products and businesses with new and better ones is calleda. outsourcingb. entrepreneurshipc. upscalingd. creative destruction
What share of net new jobs is created by small businesses?a. 75 percentb. 99.7 percentc. 49.9 percentd. none
The reason for business failure is most commonlya. externalb. inexperiencec. internald. governmental
Small businesses create more than _____________ percent of private gross domestic product (GDP).
The size standard for most retail businesses to be classified as small is _____________ in average annual receipts.
Between 1982 and 2000, the minority-owned business share of U.S. firms has _____________.
Ernest Drew said of his experience, “For the first time, we realized that _____________ is a strength as it relates to problem solving.”
When a business closes with a financial loss to a creditor, it is called a _____________.
Articulate the differences between the small business manager and the entrepreneur.
Discuss the steps in preparing for small business ownership.
Enumerate the advantages and disadvantages of self employment.
Describe the three main forms of ownership—sole proprietorship, partnership, and corporation—and their unique features.
Put yourself in Pierce Ledbetter’s shoes (and watch where you step!). Discuss the advantages and disadvantages of organizing Zoo Doo as a sole proprietorship, a partnership, or a corporation.Think
Now that you’ve looked at the various ways to organize Zoo Doo, it’s time to convince your management professor at Cornell University of your decision. Write a letter describing the approach
How did you develop a vision for your business?Do you really know what it’s like to start a business?Interview a person you consider an entrepreneur to get some insight. Because time is valuable,
How long did you envision this business before you took action to start it?Do you really know what it’s like to start a business?Interview a person you consider an entrepreneur to get some insight.
What triggering event prompted you to take action to start this business?Do you really know what it’s like to start a business?Interview a person you consider an entrepreneur to get some insight.
What are the most important entrepreneurial characteristics that have helped you succeed?Do you really know what it’s like to start a business?Interview a person you consider an entrepreneur to get
What were your biggest challenges?Do you really know what it’s like to start a business?Interview a person you consider an entrepreneur to get some insight. Because time is valuable, have a set of
What would you do differently the next time you start a business?Do you really know what it’s like to start a business?Interview a person you consider an entrepreneur to get some insight. Because
As an outside consultant to Allan Fingerhut, what would you recommend that he do? Should he try to make the business work with his partners?Should he take control of the business himself?The bill
From what you have read in this chapter about entrepreneurs and partners, is it possible for true entrepreneurs to work well with partners?Why or why not?The bill arrived early last year. According
T F The word “entrepreneur” has origins that date back to early eleventh-century Arabic traders.
T F In the maturity stage of the SBM process, survival is pretty much assured.
T F Because there are so many unknown variables of a business, the harvest stage cannot be planned in the beginning.
T F Environmental factors remain constant during each business stage.
T F Running a business always strengthens marriages.
T F Entrepreneurs typically have a high internal locus of control.
T F Entrepreneurs are born, not made.
T F Sole proprietorships generate the highest sales revenue.
T F Buy-sell agreements are strongly recommended for all nonproprietorships.
T F Income and expenses “flow through” S corporations and LLCs.
_____ the potential to lose more than an owner has invested in a business
_____ a specific event that sparks an entrepreneur to proceed from thinking to doing
_____ the personal quality in which people are motivated to excel and choose situations in which success is likely
_____ the ability to see, conceive, and create new products.
_____ the process of identifying opportunities for which marketable needs exist and assuming the risk of creating an organization to satisfy them
_____ the stage in the life of a business in which the owner reaps the fruits of her labor
_____ the primary reason people seek self employment
_____ the process of owning and operating an established business
_____ a business owned and operated by one person
_____ a business structure that creates an entity separate from its owners and managersa. innovationb. harvestc. locus of controld. need to achievee. sole proprietorshipf. partnership g. corporation
What is the pro forma statement, and how important is it for a business?
Briefly compare replacement value to liquidation value of an asset.
Briefly describe what quality control is all about, and explain the three statistical types of control.
What do we mean by budgeting, and how would this process serve the firm?
Briefly explain the budgetary variances and the way it is used.
Briefly describe the two most common types of budget.
What are the best practical recommendations to be given to a small business owner in order to help in the business budgetary control?
What is entrepreneurial finance, and how different is it from the other fields of finance?
How does the Small Business Administration (SBA) define the small business and determine its size?
How does the small business contribute to the economy?
What are the advantages of owning a small business?
If you are an owner of a small business, what would be the disadvantages that you may face?
List at least five possible ways that you may do to improve the possibilities of success in a small business.
Make a distinction between an entrepreneur and manager, and between entrepreneurship, management, and leadership.
List at least five characteristics of a successful entrepreneur.
What is the survival phase in a project life cycle?
Briefly describe Stage II of turning a business idea into a real product.
What are the alternatives to consider if you are an entrepreneur contemplating getting into the small business market?
If you find yourself leaning toward starting up a new project right from the beginning, what would be the convincing reasons?
Compare the advantages of buying an existing business and starting it up from zero.
List the major disadvantages of starting up a business from scratch.
What is the due diligence, and how can you utilize it when buying a business?
List and briefly explain the different purchase options available to anyone who wants to consider buying a business.
What is meant by “the final steps” in regard to buying a business?
What are the benefits of franchise to both the franchisee and franchiser?
List and briefly explain the different types of franchise.
Define and compare home business to family business.
What are the two approaches to estimate the value of a business?List the methods of estimation in each approach.
What is the difference between book value and replacement value?
What is the cash flow–based value, and what is the formula to estimate a business value under the cash flow method?
Briefly explain how a business value can be estimated using the market-based method.
What is the capitalized rate of return and how is it selected?
What is the capitalized earning value, and how is the projected earnings needed in this method calculated?
Briefly explain the financial ratios–based value method.
What kind of business would use the price-earnings ratio (RIE) to estimate its own value?
What's the forecasting assumption used in assigning weights to the past period to product earnings?
Why is it important for an entrepreneur or owner to determine the legal form of business ownership?
What are the four major forms of business? Define them briefly.
List at least five advantages of sole proprietorship.
Discuss at least four disadvantages of sole proprietorship.
What are the partners' rights and responsibilities?
Define at least three different types of partnership.
What are the differences between C-corporation and S-corporation?
What justified the creation of corporation? Briefly discuss three justifications.
Define at least three of the other forms of business.
What are the areas in which choosing the legal form of business would make a difference?
Define the business plan, and briefly explain why it is important in the business world.
List and briefly explain the three major types of business plan.
What is the executive summary and how significant is it?
Explain the elevator pitch and how important is it?
What is the difference between the vision and mission of a plan?
Is the appendix of a plan necessary? And what would it contain?

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