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law
business law

Questions and Answers of Business Law

Describe the common methods of establishing an advertising budget. Which method is most often used? Which technique is most often recommended? Why? Identify four basic methods for preparing an
What techniques can small business owners use to stretch their advertising budgets?
Use a search engine to locate the most recent "E-mail Marketing Trends Survey." Using the information in it, work with a team of your classmates to select a local small business with which you are
What factors should a small business manager consider when selecting advertising media?
What is a unique selling proposition? What role should it play in a company's advertising strategy?
One writer describes the USP of a company from which she received an email: "Combining the strategy, business processes, implementation, and technical support skills of a CRM systems integrator with
Summarize the advantages and disadvantages of the following advertising media: (LO 3: Describe the advantages and disadvantages of the various advertising media)
What are fixed spots, preemptible spots, and floating spots in radio advertising?
Describe the characteristics of an effective outdoor advertisement.
Briefly outline the steps in creating an advertising plan. What principles should the small business owner follow when creating an effective advertisement? (LO 3: Describe the advantages and
Stuart Frankel, a Subway franchisee, came up with the idea for Subway's "$5 footlong" to combat slow weekend sales at his restaurants. It was such a hit that Subway introduced the idea to all of its
What is cost-plus pricing? Why do so many manufacturers use it? What are the disadvantages of using it?
Explain the difference between full-absorption costing and direct costing. How does absorption costing help a manufacturer determine a reasonable price?
Explain the techniques for a small service firm setting an hourly price.
What is the relevant price range for a product or service?
What advantages and disadvantages does offering trade credit provide to a small business?
What are the most commonly used methods to purchase online using credit? What reasons can you give for consumer uncertainty when giving credit card information online as opposed to via the telephone?
What advantages does accepting credit cards provide a small business? What costs are involved?
What does the price of a good or service represent to the customer? Why is a customer orientation to pricing important?
How does pricing affect a small firm's image?
What competitive factors must the small firm consider when establishing prices?
Describe the strategies a small business could use in setting the price of a new product. What objectives should the strategy seek to achieve?
Define the following pricing techniques: odd pricing, price lining, leader pricing, geographic pricing, and discounting.
Why do many small businesses use the manufacturer's suggested retail price? What are the disadvantages of this technique?
What is markup? How is it used to determine prices?
What is follow-the-leader pricing? Why is it risky?
Why must entrepreneurs learn to think globally?
Thirty furniture makers in the United States recently asked the U.S. International Trade Commission (ITC) to impose high tariffs on Chinese makers of wooden bedroom furniture for dumping their
What impact have the WTO, and NAFTA trade agreements had on small companies wanting to go global? What provisions are included in these trade agreements? (LO 5: Describe the trade agreements that
What advice would you offer an entrepreneur interested in launching a global business effort? (LO 2: Describe the nine principal strategies small businesses can use to go global; AACSB: Reflective
What forces are driving small businesses into international markets?
Outline the nine strategies that small businesses can use to go global.
Describe the various types of trade intermediaries entrepreneurs can use. Explain the functions they perform.
What is a domestic joint venture? A foreign joint venture? What advantages does taking on an international partner through a joint venture offer? What are the disadvantages? (LO 3: Explain how to
What mistakes are first-time exporters most likely to make? Outline the steps a small company should take to establish a successful export program.
What are the benefits of establishing international locations? What are the disadvantages? (
Describe the barriers businesses face when trying to conduct business internationally. How can a small business owner overcome these obstacles?
What is a tariff? A quota? What impact do they have on international trade?
How has the Internet and e-commerce changed the ways companies do business?
What techniques can e-companies use to protect their banks of information and their customers' transaction data from hackers?
Why does evaluating the effectiveness of a Web site pose a problem for online entrepreneurs?
When Matt Buchanan and Alex Garcia purchased a struggling hair salon in Seattle, Washington, their turnaround strategy included using the Internet as a key component of their business and marketing
Explain the benefits a company earns by selling on the Web.
Discuss the factors entrepreneurs should consider before launching an e-commerce site.
What are the 10 myths of e-commerce? What can an entrepreneur do to avoid them?
What strategic advice would you offer an entrepreneur about to start an e-company?
What design characteristics make for a successful Web page?
Explain the characteristics of an ideal domain name.
Describe the techniques that are available to e-companies for tracking results from their Web sites. What advantages does each offer?
What steps should e-businesses take to ensure the privacy of the information they collect and store from the Web?
Why is it important for entrepreneurs to develop financial plans for their companies? (
How should a small business manager use the ratios discussed in this chapter?
Outline the key points of the twelve ratios discussed in this chapter. What signals does each give a business owner?
Describe the method for building a projected income statement and a projected balance sheet for a beginning business.
Why are pro forma financial statements important to the financial planning process?
How can break-even analysis help an entrepreneur planning to launch a business? What information does it give an entrepreneur?
Why must entrepreneur concentrate on effective cash flow management?
What are the four rules for effective bootstrapping? How could you apply these rules to a business that you have started or hope to start one day? (LO 5: Explain how bootstrapping can help a small
Fritz Maytag, owner of Anchor Steam, says, "Just because you are the best around doesn't mean that you have to franchise or even expand. You can stay as you are and have a business that's profitable
Explain the difference between cash and profit.
Outline the steps involved in developing a cash budget.
How can an entrepreneur launching a new business forecast sales?
Outline the basic principles of managing a small firm's receivables, payables, and inventory.
How can bartering improve a company's cash position?
Alan Ferguson, owner of Nupremis, Inc., a Web-based application provider, says, "We lease our equipment and technology because our core business is deploying it, not owning it." What does he mean? Is
What steps should business owners take to conserve cash in their companies?
What should be a small business owner's primary concerns when investing surplus cash?
Why is it so difficult for most small business owners to raise the capital needed to start, operate, or expand their ventures?
What types of businesses are most likely to attract venture capital? What investment criteria do venture capitalists use when screening potential businesses? How do these compare to the typical
How do venture capital firms operate? Describe their procedure for screening investment proposals?
Summarize the major challenges of "going public" for a small business.
What is capital? What is the difference between seed and growth capital? Describe the difference between fixed and working capital.
Define equity financing. What advantage does it offer over debt financing?
What is the most common source of equity funds in a typical small business? If an owner lacks sufficient equity capital to invest in the firm, what options are available for raising it? (LO 3:
What guidelines should an entrepreneur follow if friends and relatives choose to invest in her business?
What is crowdfunding? How has the JOBS Act changed an entrepreneur's ability to use crowdfunding?
What are the advantages offered by starting a business in an accelerator program?
What is an angel investor? Assemble a brief profile of the typical private investor. How can entrepreneurs locate potential angels to invest in their businesses?
What advice would you offer an entrepreneur about to strike a deal with a private investor to avoid problems?
What role do commercial banks play in providing debt financing to small businesses? Outline and briefly describe the major types of short-term, intermediate, and long-term loans commercial banks
What is trade credit? How important is it as a source of debt financing to small firms?
Explain how asset-based financing works. What is the most common method of asset-based financing? What are the advantages and disadvantages of using this method of financing?
What function do SBICs serve? How does an SBIC operate? What methods of financing do SBICs rely on most heavily?
Briefly describe the loan programs offered by the following: a. Economic Development Administration. b. Department of Housing and Urban Development. c. Department of Agriculture. d. Local
Explain the purpose and the methods of operation of the Small Business Innovation Research Program and the Small Business Technology Transfer Program.
Which of the Small Business Administration's loan programs accounts for the majority of its loan activity? How does the program work?
Explain the purpose and the operation of the SBA's microloan program.
What is a factor? How does the typical factor operate? Explain the advantages and the disadvantages of factoring. What kinds of businesses typically use factors?
How do most small business owners choose a location? Is this wise?
Why may a cheap location not be the best location?
What function does a small firm's sign serve? What are the characteristics of an effective business sign?
Explain the statement: "The portions of a small store's interior space are not of equal value in generating sales revenue." What areas are most valuable?
What are some of the major features that are important to a good manufacturing layout?
What factors should a manager consider when evaluating a region in which to locate a business? Where are such data available?
Outline the factors entrepreneurs should consider when selecting a state in which to locate a business.
What factors should a seafood-processing plant, a beauty shop, and an exclusive jewelry store consider in choosing a location? List factors for each type of business.
What intangible factors might enter into the entrepreneur's location decision?
What are zoning laws? How do they affect the location decision?
What is the trade area? What determines a small retailer's trade area? (Describe the location criteria for retail and service businesses)
Why is it important to discover more than just the number of passersby in a traffic count?

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