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small business management

Questions and Answers of Small Business Management

What are the major components of a physical distribution system?
What are the major considerations in structuring a channel of distribution?
How does physical distribution differ from channels of distribution?
What is a price-quality grid, and why would preparing one help in selecting a price?
If a firm has fixed costs of $100,00 and variable costs per unit of $1, what is the break-even point in units, assuming a selling price of $5 per unit?
Describe a competitive matrix. Why it is used when developing a product strategy?
Why is it so important to understand the target market?
What is the scope of small business marketing? Has it always been as broad as it is now? Why or why not?
Why is a shorter business plan better than a longer one, especially since a lengthy plan could include more supporting data?
In what way might a business plan be helpful in recruiting key management personnel?
Why do entrepreneurs tend to neglect initial planning? Why would you personally be tempted to neglect it?
What benefits are associated with the preparation of a written business plan for a new venture? Who uses such a plan?
What is a “vendor take-back” loan? Why would a seller offer one?
Contrast the market-based valuation approach with the earnings-based approach. Which is easier to apply? Which is more appropriate?
Why would you purchase the assets of a business instead of buying the shares?
Suppose that a business available for purchase has shown an average net profit of $40,000 for the past five years. During these years, the amount of profit fluctuated between $20,000 and $60,000. The
What types of franchise information could you expect to obtain from business periodicals that you could not secure from the franchisor?
What problems might arise in consulting previous franchisees in the process of evaluating a franchise?
What types of restrictions on franchisee independence might be included in a typical franchise contract?
How is loss of control a disadvantage of franchising from the franchisor’s perspective?
What are the advantages and limitations of franchising from the viewpoints of the potential franchisee and the potential franchisor?
As a recent graduate in business administration, you are headed back to the family business. As a result of your education, you have become aware of some outdated business practices in the family
Suppose that you, as founder of a business, have a sales manager position open. You realize that sales may suffer somewhat if you promote your son from sales representative to sales manager. However,
What are four challenges a firm might face if using a niche marketing strategy?
What is meant by the term niche marketing?
Why is it important to consider sustainability in the development of competitive advantage? What measures can a small business take to ensure sustainability?
List the six most important trends of the general environment. What are some ways in which each trend might affect a small business?
List and describe the five approaches that can be used to generate creative new business ideas. What are the most important features of each of these?
What is the difference between an artisan entrepreneur and an opportunistic entrepreneur?
Consider an entrepreneur you know personally. What was the most significant reason for his or her deciding to follow an independent business career?
Discuss the importance of small business to the Canadian economy.
Do you believe that all small business owners are entrepreneurs?
Why has there been an increased interest in small business and entrepreneurship?
Describe DashLocker’s growth potential.
Describe DashLocker’s competitive advantage.
What impact does DashLocker have on society?
What are the two basic strategy options for creating a competitive advantage?
What risks do you think you would face if you were a successful manager in a large organization who suddenly had an offer to go into business for yourself?
Why do you think Treadwell decided to become a multibrand franchisee instead of just staying with KFC?
How do you think growing up in a family business affects career decisions by children of the owners?
If you were going to run a business with a family member, how would you go about deciding on the organizational culture you want to create?
If you were in Fran’s shoes when he was running his own company, what factors might have attracted you to close your business and join Iaccarino & Son? What factors might have discouraged you
Why do you think Carl wanted to retain ownership and decision-making authority over Iaccarino & Son after bringing Fran into the company?
Investors are said to be more market-oriented than product-oriented. What does this mean? What is the logic behind this orientation?
Is HyperWear’s executive summary more of a synopsis or a narrative?
Explain why forecasting is used more widely by large firms than by small ones.
Taylor Stitch has both a bricks and mortar store and an online store. What are the advantages and disadvantages of this strategy?
What is an S corporation, and what are its principal advantages?
What other legal forms of organization could have been used for this business? Which type would you recommend? Why?
How are owners’ equity and debt different?
Distinguish between common stock and retained earnings.
Prepare a cash flow statement for the firm for 2014 and 2015.
1. Do you think interns make the best employees for a small business like TiesInStyle.com? Does the fact that the company is a startup create any potential complications that you can think of?2. What
What are the basic ways to manage risk in a business?
What are the common types of property and casualty insurance?
Why is it important to consider an entrepreneur’s personal finances when conducting the short- and long-term financial forecasts of a firm?
1. Prepare proforma income statement and balance sheet for 2014.2. Computing financial ratios3. Preparing statements of cash flowsThe quantitative solution to the case is provided in an excel
If you were starting a new business, where would you start looking for capital?
Even as the remodeling market weakened and taking on extra financing became risky, what are some things that Moon Associates’ president and CEO Jim Moon did to sustain the company’s long-term
Could Moon Associates have obtained the needed capital to not only keep the company running but expand its Renewal by Andersen line through a mortgage loan? If so, for how long could such a loan be
1. Arrange for an interview with the owner of a start-up business in your community. Ask the following questions and share your results with the class.2. Imagine you’ve just stepped into the
Does CRM put more emphasis on current or potential customers? Why?
List the four psychological influences on consumers that were discussed in this chapter. What is their relevance to consumer behavior?
1. What are the advantages and disadvantages of the in-home method of selling Project Home products?2. What other channels of distribution might Project Home use?3. What do you think about the name
1. What re the advantages the Sugal will likely gain if he decides to bring inventory storage and bike delivery in-house?2. What complications might arise if Sugl makes this change? What might he
If you were opening an office furniture store, how would you select a social networking site to introduce yourself to prospective customers?
What would be your first choice for an advertising medium if you owned a rental car agency? Why?
1. Why do you think DiPippo chose videos to market his products?2. What risks do you think Di Pippos faces with customers posting videos about his products
Why is it so important to have high-quality employees?
1. What are the major advantages and disadvantages for employers that choose to use social media to screen job candidates? What are the major benefits and drawbacks for job candidates who are
Is work-life balance for everyone?
What do you believe would be the advantage of having an entrepreneurial team when starting a business?
How do different personalities affect our effectiveness in running our own small business?

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