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small business management

Questions and Answers of Small Business Management

Describe the four stages of small business growth and how the owner would function.
List some tools and techniques that can be used to stimulate two-way communication between managers and employees.
Suggest five valuable tips for good time management.
Discuss the types of outside management assistance available to small business owners.
List and discuss the pros and cons of five possible sources of employees for the small firm.
Describe the five steps involved in selecting employees.
What steps and/or topics should be included in an orientation program if it is to be effective? What outcomes can reasonably be expected from running new employee through such a program?
A band manager is designing an application form for hiring new band members. After discussing information that should and should not be on the form, how will the form’s information be used for the
Explain the nature of orientation programs and why they are needed.
Considering the weaknesses of interviewing, how can the procedure be made more effective in selecting employees?
Assume that the cost of certain equipment that a business is considering purchasing is $100,000. The equipment will be depreciated over five years, at which point the salvage value is expected to be
Calculate the annual interest rate associated with each of the following terms:a. 2/5, net 30b. 2/10, net 20c. 3/15, net 30
Sierra has hired a front office manager, Todd. What suggestions should Sierra follow to make the implementation of training more effective for Todd?
Tim and Tina own an independent pet grooming business in which employees are hired to groom the animals, take care of customer needs, and clean the facility. Other area competitors offer the same
Compare the two investment proposals below, using the payback period technique. The projected cost of each investment proposal is $100,000. Year 12345 Project A (Cash
Discuss the use of compensation and incentives in recruiting employees for small businesses.
Identify and discuss the advantages and disadvantages to using a PEO.
Define each of the following statutes and indicate who has to abide by each act: (a) Civil Rights Act, (b) Occupational Safety and Health Act, (c) Fair Labor Standards Act, (d)
Dana produces fine chocolates for her retail shop, which is open six days a week. The sales are $156,000 annually, with a cost of goods sold of 45% of sales and an average inventory on hand of
1. Chapter 21 mentions that small businesses can use operations management to compete effectively against their rivals. In your opinion, is Schoneman Jewelers using its operations effectively to
Discuss the importance of working capital management and how it relates to the working capital cycle of a small business.
What are cash flows? What must a small business owner know in order to calculate cash flows?
Jane has started a gift basket company that specializes in regional products. Several corporations use her baskets for the holidays, to welcome new employees, and for their sales staff to use as
List some credit management practices that can have a positive effect on a firm's cash flows.
Discuss the types of accounts receivable financing. What are the advantages and disadvantages of using accounts receivable financing?
Ralph has always enjoyed fireworks and has set up a booth from June 4 through July 4. Additional inventory is scheduled to be sent throughout the month. Ralph is now wondering if he has ordered too
What are key issues in managing accounts payable?
Define capital budgeting and provide examples of the types of capital budgeting decisions that a small business owner would make.
List and briefly describe three techniques for making capital budgeting decisions. Which technique is the most reliable for decision making in capital budgeting analysis?
Many small business owners do not use discounted cash flow (DCF) techniques. What are the reasons why they do not?
1. Was the creation of the ALOHACollection an example of market risk or pure risk? Why?2. Understanding that the ALOHA Collection decided to lease their retail store in Waikiki and their warehouse
List and briefly describe the four stages of the entrepreneurial process.
1. What opportunities did Melissa identify, and how did she capitalize on those opportunities?2. How did Melissa’s background help her identify and tackle the problems she discovered in the beauty
List and briefly explain the seven "desirable and acquirable attitudes and behaviors" found in Spinelli's and Adams' research on entrepreneurial characteristics.
Identify the six attitudes and behaviors entrepreneurs should avoid. For each, explain the likely result of engaging in that behavior or holding that attitude.
Identify and explain the four fundamental reasons entrepreneurs own their own businesses.
Briefly summarize the three types of personalities that come into play when a person is starting a business.
How can integrity and financial success be related? Use an example to strengthen your argument.
1. Do you believe Hydraloop is a good example of a social venture? If this is determined by a start-up’s performance on the “triple bottom line” (people, profits, and the planet), on which of
What are legitimacy lies? What effect may these have on a business?
Explain how integrity applies to various stakeholder groups, including owners, customers, employees, the community, and the government.
Discuss the relationship between profits and social responsibility in the small firm.
In their highly influential book The Power of Ethical Management, Kenneth Blanchard and Norman Vincent Peale offer insights to guide the development of an ethics policy. Describe the five fundamental
Using examples, discuss how environmentalism can have both a positive and negative impact on different companies.
List the six-step decision making process in order and comment on each of the steps in resolving ethical issues.
Describe PRO factors and how these factors relate to customers.
Discuss the issues related to Internet usage and personal privacy from both a business perspective and an employee and a customer standpoint. What should a small business do to decrease conflict?
1. Review the concept of broad-based strategies in Chapter 3.When Dubin first launched Dollar Shave Club in 2010 and for the first few years of its existence, was he following a cost-based strategy,
Compare and contrast personal experience, hobbies and personal interests, and accidental discovery as a source of start-up ideas. Use examples to strengthen the discussion.
List the five factors that determine the nature and degree of competition in an industry as presented by Michael Porter. Why is the proper identification of these factors important for a new venture?
Describe the differences and relationships among resources, capabilities, and core competencies. How do these items relate to inside-out analysis?
Name and describe the two broad-based strategy options that a firm can select when pursuing a competitive advantage in the marketplace.
In what ways can a small firm implement a focus strategy?
Identify and discuss the five factors that entrepreneurs should consider when screening new business ideas.
Briefly state the difference between a market and an industry. How are these two items related to small business success?
1. What would make being a franchisee attractive to you?2. What do you think you would not like about being a franchisee?3. Do think you would be more satisfied running your own franchise or
Define the terms franchising, franchisor, and franchisee. Apply these terms to McDonald's or another franchise example.
1. Do you think Kelley would have started TNCRadio if he had not become an Uber and Lyft driver? Why or why not?2. Most people who take on gig jobs do not start other businesses. What might be some
Define the two primary forms of franchising and provide examples for each.
Describe at least four key terms in franchising.
Compare and contrast the functions of a master licensee and area developer.
Discuss the advantages of buying a franchise.
Why is it important for a new franchisee to follow the business plan detailed in the operations manual?
Identify and discuss some of the negative aspects associated with franchises.
List and describe the cost components of becoming a franchisee.
Do you feel that an independent contractor is an actual business owner or just a contract employee of another company?
In what ways might someone grow their involvement in the sharing economy into a viable business?
1. This family business has made numerous transitions. It started as two brothers and their wives (Whitehall), then became a husband and wife team (Judd’s Hill), and finally parents with their son
Explain the concept of family and business overlap in a family business.
Explain the role of the entrepreneur's spouse as it affects a family business.
Identify the six positives of a family business.
List four reasons for buying an existing business.
What is due diligence? What are some of the steps involved in the due diligence process?
Identify and discuss three of the six nonquantitative factors in valuing a business.
What are some reasons for buying a company as opposed to starting a new venture?
Why might an owner decide to sell an existing business? Are there any reasons that might be viewed negatively by a potential buyer?
What are some of the nonquantitative factors that might affect the selling price of a business?
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?
We all assume several different roles (parent, student, sibling, athlete, business owner, and so on) at any given time, and those roles affect our behavior as consumers. Describe how your various
How can shrinkage affect an inventory system?
Assume that you are the owner of the sporting goods store used in the example of economic order quantity inventory control You typically sell 14,500 sweatshirts per year. Your ordering costs are $10
Consider the make-or-buy decision. Give three examples of situations when a business should make rather than buy. Give three examples of situations when a business should buy rather than make.
Explain the importance of knowing the legal requirements of an area before attempting to open a small business.
What are your personal screen inspirations? What lessons do these or other movies provide in running a small business?
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?
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)?
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?
Is workforce diversity as important to small businesses as it is to big businesses? Why or why not?
From strictly a small business perspective (not social or emotional perspectives), why is diversity important?
The chapter discussed the evolution of small business in the American economy. On the heels of the rapid growth in the popularity of Internet businesses in the late 1990s and the ensuing bust in
How would the computer industry be different today if there were no businesses under 500 employees? Would personal computers exist?
What do entrepreneurs do that distinguishes them from any other person involved in business?
If you were in Rappaport and Harrison’s situation, how would you change your business plan for the future?
When you reach the point of your career when you are ready to start your own business (or your next one), will you write a business plan before beginning? Why or why not? If you would choose to start
What is a royalty fee?
After reading about the topics included in a franchise agreement, who do you think controls most of the power in a franchise: the franchisee or the franchisor? Explain.
What are the positives and negatives of searching for a business for sale via an online site?
When buying an established business, what questions should you ask about it? From whom might you seek information about the business?
What should a prospective buyer know about the seller’s inventory sources and other resource contacts? How is this information obtained?
You are analyzing the financial records of the business you have been thinking about buying. You discover that, although the firm has excellent current and quick asset ratios by industry standards

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