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Questions and Answers of Small Business Management

Which type of asset would be more difficult to value - tangible or intangible? Why?
How can a buyer determine the rate of return to use in evaluating the worth of a business?
Define “hypergrowth” companies, and evaluate the reasons for their phenomenal rate of growth. What are the most valid explanations for the rate of success found in these companies?
Give some examples of things the new entrepreneur should immediately investigate in order to ensure to the maximum extent possible that the business will “get off the ground.”
Is a business plan really necessary even for a very small startup business? How much market analysis and competitive analysis should the new entrepreneur conduct prior to startup?
What are some of the tangible resources that the new entrepreneur might need in order to go into business initially? What are some options for obtaining capital for a business that is brand new and
After startup, what is the single most important tool the small business owner has at his or her disposal for ensuring the success of the business? Why is it so crucial?
Explain the difference between macro-aging and micro-aging accounts receivable schedules.
What are some considerations that should be taken into account if business is to be conducted in a foreign market?
Danny Stein faces several problems with eMusic, some with conflicting ends. What problems do you see?
Working in teams of no more than three, choose one of the two examples to work on. Develop an outline for a comprehensive marketing strategy for the company and the product. Be specific in defining
Once your team has developed its marketing strategy, find another team in the class that has worked on the same example. Take turns presenting your information to each other.
What recommendation(s) do you make for Stein?
Discuss the personality traits that a good salesperson should have. What traits would detract from the personal selling process?
Explain the ratchet effect on sales.
What would happen if the feedback were not included?
Define “at-will” employment status.
What factors influence the type and amount of employee benefits that a small business can offer?
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?
If hiring a CEO is not the answer, what should they do to get their business to the next level?
Would you recommend the Mirzas hire their own boss? What would that new job description include?
Could a new CEO do better?
Give examples of stress and distress.
This Concept Module described five stages a business goes through as it grows. How would management style need to change from stage to stage.
Would you keep Aaron Kamins as CEO? Why or why not? If you fire him, who would do the job?
Refer to the chapter opening story. List two differing activities in which each manager engages.
What does the Eximbank do for potential exporters? For importers?
What would you recommend the family running the Hamakua Springs Country Farms do?
Since Hawaii is so isolated and Ha sells bananas locally, why is he affected by international competition?
Much of the self-produced small business advertising is weak. Think of an example of a local small business that uses especially effective advertising. Why is it successful at communicating with its
Consider a small business with which you are well acquainted. Have adequate provisions been made to replace key management personnel when it becomes necessary? Is the firm using any form of executive
What are the key factors of employment for you? Are you more motivated by a high salary or such factors as a flexible workweek and the opportunity to be creative?
What do you believe would be the two most desirable and undesirable qualities of an entrepreneur?
Visit DashLocker’s website http://www.dashlocker.com/ and explore the process of signing up for services. What recommendations would you give to Hennessy to make the process easier?
Describe a family business with which you are familiar. What strengths or weaknesses do you see in the business relationships among the members active in the company?
If you were an investor, would the executive summary spark your interest in the opportunity? In other words, would you continue reading the business plan for more details?
What do you like about this executive summary? What do you dislike?Hyper Wear was founded in 2008 to participate in the functional fitness market, along with such recognized brands as CrossFit and
Would you suggest that Fredenburgmake any changes or additions to the executive summary? If so, what do you suggest?
What factors should business owners consider when deciding to manage their own website and online sales versus contracting for the service?
Interpret your findings, both for the firm’s financial ratios compared to those of the peer group and for the cash flow statement.
As a college student, what kind of app would be most useful to you? One for buying textbooks or for studying socially, or for finding a place to live, or something else/ If you were marking that app,
What do you think are the most serious weaknesses in the interviewing process as conducted at many small businesses? How could these be remedied?
1. Using financial ratios, compare the Northern Lights Communications’ financial performance for 2013 and 2014.2. What do you think might have happened from 2013 to 2014?
Given the below information, help Martin and Stegemoller prepare pro forma income statements, balance sheets, and cash flow statements for the first three years of the operation.Angela Martin is a
1. How do the operating systems used by Strauss Communications contribute to its overall competitive position?2. What statistical methods could be employed to enhance the service offered by the
1. How could the problems Dequoy faced have been avoided or minimized in the future?2. How has Dequoy modified his leadership and communication style to facilitate company growth?
1. Do you think Fried’s hiring methods are reasonable? Will they lead to good hires for his growing company? What are the best features of his approach (if you believe there are any)?2. Do you
1. What is the primary force that motivated Hwang to internationalize? Did he make a good decision when he located his manufacturing facility in China? What other countries should have been
1. How important do you think the promotion through events was to the successful expansion of Garneau products? How else could the product be promoted?2. What problems did the company encounter
1. What competitive advantages has Cardio-Core developed for its service? Who is the company’s target market?2. Using the franchise assessment factors listed in Chapter 4, evaluate the
1. Chapter 2 discusses three types of start-up ideas: new market, new technology, and new benefit. Which of these is illustrated by Biolife’s start-up based on its QR product?2. Most new business
1. Why would an entrepreneur choose MOM over OPM, and vice versa?2. What is bootstrap financing? Why is it popular with entrepreneurs?3. Why do you think investors expect an entrepreneur to have some
1. Referring to the theories of entrepreneurship character, do Amanda’s experience and character fit the models?2. Evaluate Amanda’s preparation for entrepreneurship. How did it affect the
1. Describe the other methods of harvesting a business that were discussed in Chapter 15.2. What advice would you have given Brodsky before he sold his business?3. What suggestions would you give him
1. Based on what you’ve just read, how would you rate the leadership skills of Scott MacDonald? In what ways does he fit the profile of the typical business founder?2. Do you think Scott has the
1. Does the target market iYellow has identified make sense in terms of their business format/offering? Are there other target markets the company should pursue?2. Evaluate the marketing strategies
1. Identify the elements of consumer behaviours affecting your situation.2. Outline the criteria that car owners use to evaluate service to their vehicle. Do those criteria change as the vehicle
1. What is Napier’s current approach to market research? What is the company doing right? In which areas could the company improve?2. What types of secondary data and primary data could Napier
1. What marketing strategy is Ultimate Garage pursuing? Which target markets do you think the company is pursuing?2. Visit Ultimate Garage’s website, and analyze its effectiveness. Which
1. What do you think Jeff did well in looking for opportunities? How would you improve on this process?2. What steps would you take to examine the Smitty’s opportunity and see if it might be worth
1. How would you classify the type of start-up idea that was present for Geoff Dillon?2. Which factors and trends in the general and industry environment will be the most important for Dillon’s?3.
1. If you were Dorian, what steps would you take to grow the business?2. What do you see as the greatest challenges facing Dorian as she moves her business forward?3. How does Dorian’s approach to
What emotions might an entrepreneur experience after leaving a firm that had been an integral part of his or her life?
What advice would you give to an entrepreneur who was planning to exit his or her firm?
What are some advantages and drawbacks of a business incubator location for a start-up retail firm?
What are the characteristics of a serial entrepreneur?
What are some of the factors that should be considered when expanding a business?
What advice would you give an entrepreneur who was trying to finance a start-up?
What are the primary types of records required in a sound accounting system?
What is liquidity? Differentiate between the two approaches given in this chapter to measure liquidity.
What role does financial management play in the success of a business?
Discuss the conditions under which a new small manufacturer should buy(a) General-purpose equipment(b) Special purpose equipment.
When should a small manufacturer utilize (a) a process layout and (b) a product layout? Explain.
What legal issues should one consider before starting a home-based business?
Explain the issues an entrepreneur should be aware of in negotiating a lease.
Under what conditions would it be most appropriate for a new firm to buy rather than lease a building for the business?
Discuss the legal protection provided by patents. Does the granting of a patent guarantee no one else can use the design?
How does the Canadian Human Rights Act affect hiring practices? Be specific.
List the factors in small business operation that favour the appointment of a human resources manager. Should such a manager always be hired on a full-time basis? Why or why not?
What must an employer do with respect to laying off employees?
In general, allowing for differences among provinces, how does maternity leave work?
How does contracting employees differ from using a temporary help agency? What are the greatest benefits of contracting?
Is the use of a profit-sharing system desirable in a small business? What major difficulties might lessen its effectiveness in providing greater employee motivation?
Based on your experience as an interviewee, what do you think is the most serious weakness in the interviewing process? How could this be remedied?
What factor or factors would make you cautious about going to work for a small business? Could these reasons for hesitation be overcome by a really good small firm? If so, how? If not, why not?
Some sports coaches have written game plans that they consult from time to time during games. If coaches need formal plans, does it follow that small business owners need them as they engage in their
What exporting assistance programs does the EDC provide?
What are some alternatives to exporting that provide involvement for small businesses in international markets? Which one(s) do you find most consistent with a small firm’s situation? Why?
How have trade agreements helped reduce trade barriers? Do you believe these efforts will continue?
What changes in a firm’s marketing plan, if any, may be required when selling to foreign markets? Be specific.
What is the importance of a careful cultural analysis to a small firm that wishes to enter an international market?
How do specialties differ from trade show exhibits and publicity? Be specific.
How can the concept of a strategic alliance be used in promotional strategy?
What are the four basic approaches to advertising on the Internet?
What are the advantages and disadvantages of compensating salespeople by salary? By commissions? What do you think is an acceptable compromise?
Assume you have the opportunity to “sell” your course instructor on the idea of eliminating final examinations. Which objections do you expect to hear from your instructor? How will you handle
Why are a salesperson’s techniques for handling objections so important to a successful sales presentation?
What system of prospecting could be used by a small camera store? Incorporate all the techniques presented in this chapter.
What are the advantages and disadvantages of different approaches to budgeting funds for promotion?
What are your comments on the statement “Channel intermediaries are not necessary and only increase the final price of a product”?

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