Question

The Internet provides many resources to help small-business owners successfully manage their businesses. Resources include information about common techniques used for planning and managing operations.

REQUIRED
A. Why are small-business owners often unaware of common business techniques such as CVP analysis?
B. Why might CVP analysis be even more useful to small-business owners than to managers of large organizations? (Hint: Consider whether information about the margin of safety and size of potential losses might be especially important for people who own small businesses.)
C. Use an Internet search engine to locate Web sites that provide information about the terms breakeven analysis and cost-volume-profit analysis. Also search for these terms on Websites designed explicitly to help small-business owners, such as the U.S. Small Business Administration (www.sba.gov). Summarize what your research tells you about the uses and usefulness of breakeven and CVP analysis.
D. Suppose you are trying to help a small-business owner learn to use breakeven and CVP analysis. Write a memo to the owner explaining what you think the owner should do and include appropriate references to Internet resources that would be useful to the owner. Assume that you have already had a brief conversation with the owner about breakeven and CVP analysis, and the owner expressed an interest in learning more. Focus on communicating effectively by avoiding unnecessarily technical language and concentrating on the most important points.



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  • CreatedJanuary 26, 2015
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