Questions and Answers of Small Business Management

1. What were Worthington’s motivations for founding Telesian Technology? What kinds of risks was she taking?2. Worthington viewed Telesian as an advertising agency when she staarted the company.
Jerry is starting an athletic apparel store, with his brother-in-law providing all funding. Identify possible insiders and outsiders and explain how each would use a business plan.
Why and when should you use the Business Model Canvas?
Describe the two types of business plans and state which plan would be appropriate for a proposal for a new bed and breakfast inn for a rural area.
Janice is opening a golf shop and is trying to identify how the company would gain revenue. What type of revenue stream could Janice's Golf Shop have?
Why is the executive summary so important for a business plan? What should be included in the executive summary?
Explain the concept of business model risk and why it is important for an entrepreneur to take this into consideration.
Discuss each pro forma statement in the financial plan in terms of time frame. Which of these pro forma statements deserve special attention in the financial plan, and why?
Describe the concept of a lean start-up and how it can help reduce risk in the early stages of a new venture.
What are some effective ways to avoid making mistakes when writing a business plan?
Describe the concept of a pitch and how it might be effectively executed.
Identify the three levels at which value to customers from a product or service may occur. Using this information, provide an example for the U.S. Postal Service.
What do you think would be different about marketing products and services for a small business as opposed to managing themarketing function in a large corporation?
1. Where would you fit the preparation of a website for Taylor Stitch in their marketing plan? Why?2. What metrics would you recommend to the owners of Taylor Stitch to help them determine if they
List five questions that a possible investor would want answered concerning the market of the new business.
What are the "4 Ps" of marketing strategy that should be discussed in a marketing plan?
1. Based on the marketing activities DNBC has tried, do you think it has a production-oriented marketing or a consumer-oriented philosophy? Explain your reasoning with examples.2. Research the City
Compare and contrast the three marketing approaches. Give supporting evidence on why one approach is stronger than the others.
If you had opened a restaurant before the COVID-19 pandemic, what might have affected your marketing plan oncelockdowns began? What do you feel you would have had to change to survive?
Do markets always need to be segmented? Why or why not? What might be some differences in market segmentation for small companies versus large companies?
Define the term market and explain the key ingredients of that definition.
Think of a small business that you have bought products or services from. If you were writing its value proposition, what would it be?
Holley is starting a new business and is trying to forecast sales. She has owned two other businesses, one of which was in the same industry as this new venture. Discuss the implications for
Why are sales forecasts needed?
Briefly discuss the three types of market segmentation strategies. Provide examples of businesses that use each of the strategies.
Discuss the concept of achieving balance in a management team.
Identify the three most basic forms of legal organization used by small businesses. What are the factors one must consider when choosing a legal form of organization?
Discuss the differences in the continuity of business for sole proprietorships, partnerships, and corporations.
Julie and Diane are starting a new company decorating wedding cakes that are unique in their design and structure. Both women are certified chefs and have 10 years of experience between them. They
Explain how income is taxed in a sole proprietorship, a partnership, and a C corporation.
What is the principal advantage of an S corporation over a C corporation?
In what situations would it be best for a company to be formed as a C corporation as opposed to a limited liability company?
What advantages does a small business have in forming a strategic alliance with another small business as opposed to a small business forming an alliance with a large company?
What steps could an entrepreneur take to improve his or her chances of success when forming a strategic alliance?
Explain the advantages of having outsiders as board members.
List the requirements that must be met in order for a corporation to obtain S corporation status.
What services are board members expected to perform for the corporation?
Explain the difference between a board of directors and an advisory council.
1. Looking forward, do you think Mr. Holmes Bakehouse would have as much potential if Aaron Cadell were to continue operating the business as an ecommerce venture as it did when the company only did
What are the benefits and drawbacks of leasing, as opposed to purchasing, a building space?
List and describe the five drivers of a firm's profits.
What key terms should an entrepreneur understand so as to be prepared for loan negotiation?
What are the advantages of locating a start-up in one's home community?
Describe the critical resource considerations that should guide the location decision.
Discuss the challenges that an entrepreneur faces in designing the new operation's physical facilities.
Todd's small company, Nimbus, developed a video game called Combat Skill that took off among gamers. Farbase EAD is a large video game developer with its own gaming system that has offered to buy
What information is typically included in a customer database?
What are professional and personal issues an entrepreneur may face in the period of time from when the harvest is announced and it is completed?
Allie is starting a purse business and is considering using a crowdfunding portal to raise equity for her small business. In order to do so, what requirements must be met by Allie? What potential
Discuss two methods of selling stock.
Discuss the importance of having a harvest plan.
What are the potential upsides and downsides of an employee stock ownership plan (ESOP) to both the owner and employees of a company?
List and describe the three types of leveraged buyout (LBO) sales to financial buyers.
What are the advantages and disadvantages of harvesting by distributing the firm's cash flows?
Name four benefits of using an initial public offering (IPO) as a harvesting method.
How does an IPO relate to a harvest?
John is developing a harvest plan and figuring the value of his art gallery. What two issues are of importance?
Ellen is a dentist and has decided to develop a harvest plan. She wants her efforts to be successful and effective. Discuss suggestions for crafting an effective exit strategy.
1. Spend a few minutes on Numi Organic Tea’s website (www.numitea.com). Based on what you have read in the case and learned from looking at the company website, what is the message that you believe
Caleb owns a small deli and is focusing on developing his business relationship with customers. What four underlying beliefs should Caleb consider in order to develop and provide great customer
Briefly describe what customer relationship management (CRM) is.
List and briefly describe some approaches to improving the effectiveness of customer service efforts.
Identify and briefly explain the signposts of extraordinary customer service.
How can technology improve customer relationships?
How can a customer database be used to identify a company's best customers?
Briefly describe each stage of the customer decision-making process.
Mandy is shopping for a new car. She is visiting a car dealership in her hometown and describes to Jane, the salesperson, that she wants a four-door sedan with high fuel economy and a leather
What should entrepreneurs understand about sociological influences on customers?
1. It is reasonable to say that the Cu sisters were thinking innovatively when they created Cocofloss. It certainly is different from other floss products on the market. Chapter 15 offers a few
How can a growing firm fall into a growth trap?
Compare innovation in small businesses to innovation in large firms. Provide some examples of successful innovations by small entrepreneurial firms.
Josiah has developed an avalanche safety kit that includes a small but powerful locator beacon. When he developed and researched the idea, he found other kits on the market, but his business analysis
Austin has developed a new USB-powered universal remote control for TVs. He is trying to think of a name for his product. What advice for naming products can you offer Austin?
List the six categories of major product strategies and discuss the implications for a small business.
What are the four key factors that should be considered in conducting a business analysis?
Marie is a songwriter who has a full catalogue of material she has been compiling as a hobby since 1985. Recently, she was approached about someone recording her songs. To protect her rights to her
List and briefly describe the stages of the new product development process.
When should a small business owner make use of an intermediary for distribution?
Discuss three considerations in evaluating a channel of distribution.
1. The Ōura ring is a premium product that offers unique features and is priced higher than the competition. Identify the pricing strategy the company is using. Explain this strategy and discuss why
List the factors that determine an effective promotional strategy.
List the four common methods of determining the appropriate level of promotional expenditures.
What are some do's and don'ts for using social media marketing?
What are five website design guidelines?
What are the advantages and disadvantages of using salary and commission as methods of compensating salespeople?
What are the specific services that an advertising agency can provide?
What are the greatest challenges that a small business is likely to face when designing its physical facilities? What are the advantages and disadvantages of open-office configurations?
Distinguish among manufacturing equipment, retail equipment, and office equipment using a candle factory and a candle store as examples.
Discuss the attractions and challenges of operating a home-based business.
List and describe the different e-commerce business models related to the type of customer served. Provide an example of a business that uses each type of model.
Discuss the three ways of categorizing e-commerce models as they relate to a firm's intended level of online presence.
What are some emerging options for online businesses?
What five areas of business activity need to be examined to answer the question "How profitable is the business?"
What items would be included in the Operating Activities section of an income statement? The Financing Activities section?
Trucks for Stuff is a one-year-old company that provides statewide moving services to customers. Describe the types of current and fixed assets Trucks for Stuff would have.
List and describe some sources of current debt.
Compare and contrast the income statement and balance sheet. What is important to know about each statement to determine how a company performed during the year?
Briefly explain the difference between accrual-basis accounting and cash-basis accounting.
Why do profits determined with an accrual-based accounting system differ from profits determined with a cash-based system?
Erin, the owner of Sweets To Eat Ice Cream Shoppe, wants to know how her company is operating from a financial perspective. Her CPA has given her the following numbers: Sales, $325,000; operating

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