You are required to answer Question 1 (10 marks) and any five of Questions 2 through 9. (10 marks each). Note: Only Question 1 and the next 5 answered questions answered will be marked.

Scenario Good morning commuters. This is Walt Weederman with the Yackity Yack Do Talk Back radio show. My guests today are all experts in the field of risk management for tourism businesses and they are ready to answer your questions. So, get on those cell phones but watch the bumper of the guy in front of you. I have on my panel Calvin Calculus, an accountant with the firm of Skeem, Connive and Calculus. I also have William Argue, a partner with the law firm of Bellow, Argue & Harrange. Next we have Lawrence Laidback, from the Federal Ministry of Trade, Tax and Tonnes of Forms. We have Professor Learned from the School of Business at CapilanoU. And last but not least I have Ms. Beatrice Biggering of the Biggering and Biggering Bank, an expert in making money for the Bank. So, there we have them the five necessary evils of business life an accountant, a lawyer, a civil servant, a professor and your friendly banker.

The first caller was Dwight Bright, a budding ornithologist who had a passion for studying owls and bats. Unfortunately, these creatures slept during the day and hunted at night when it was difficult to see them. This led Dwight to develop a unique inexpensive, light-weight set of very effective night vision goggles. They utilized infra-orange light and had special lens which made them much more effective than the military version. Not only that, the goggles were equipped with tiny windshield washers which kept the lens clear even in inclement weather. He called it Dwights Bright Night Sight Light. He had to approach an electrical engineer to have a set made. After enjoying his hobby for a while he found that other ornithologists were asking him to make pairs of the goggles for them. That is when he realized that he might be able to make money if he produced and sold his goggles, which he aptly named Dwights Bright Night Sight Light. Having no business experience Bright thought it was advisable to seek help and so he called in to the radio show as a starting point. He told the Moderator that he had recently read a newspaper article about business plans entitled Make a Plan or Plan to Fail. He then said that he knew his idea was a great one, so why waste all that time and energy on a business plan?

Professor Learned explained the purposes of a business plan and even suggested that a good one might have a plan for failure. The professor also itemized the various components in a good business plan.

Will Argue suggested what Dwight might do to protect the intellectual property in his invention.

The next caller, Carol Cautious, related the following facts. Mr. Lo Fat of the Far East Trading Company out of Shanghai, PRC, contacted Ms. Cautious, President of the ClapHat Manufacturing Corp. and advised her that the ClapHat was becoming very popular in the PRC. Mr. Fat wanted to know if the ClapHat Manufacturing Corp. could supply them in the millions? Cautious said yes but realized that it would be necessary to expand her operation and that would necessitate additional capital. Not wanting to seek equity investment and give up some control of the operation, Cautious decided to talk to the Loans Officer at the Chilliwack Safe & Sound Bank, Mr. Gary Gouger. Mr. Gouger asked for a list of the assets available as security. The ClapHat Manufacturing Corp. owned its manufacturing plant in Chilliwack and although Cautious and her business associate, Verne Vipp, had made a substantial down payment when it was purchased, Cautious told Mr. Gouger that it already had a mortgage on it. The business had some materials, supplies and inventory; some unencumbered equipment; and some stock of ClapHats in Wombats Warehouse Inc., a nearby storage facility. Cautious said she had a small investment lot but it was not a business asset. Thats about it, Gary, except for the life insurance policies on Vipp and me. And of course my beautiful rich husband, Clarence Chapeau, but Im not mortgaging him. Ha! Ha.

Ms. Biggering from the Biggering and Biggering Bank suggested some possible sources of funding based on what Carol Cautious told her.

Carol thanked Argue and then said, I just have one more question. The Moderator said, Go ahead. Cautious said that she had read that in order to have a good chance of success a budding entrepreneur should have the right stuff. What does that mean? And how can I tell if I have the right stuff personally and the right stuff financially? The Moderator responded, Well, thats three questions actually but Ill bet Professor Learned can handle them. The Professor explained the origin of the term and how Carol could determine whether or not she had the right stuff in an entrepreneurial sense.

The Moderator then took a call from Sarah Shortfall who had business plan but not enough money. She was about to approach her bank for assistance. Shortfall asked Beatrice Biggering for some pointers so that she would make a good impression. Ms Biggering responded with a list of suggestions and then ended by saying, Remember - Cash is King.

Then the panel had a call from Donald Decaff who planned to open a coffee shop called GottaHavaJava Donald had some money but could not obtained financing from conventional lenders because his previous business - a restaurant called Tons of Tofu, ..., had all failed leaving chartered banks and the Development Bank of Canada with nothing to show for their investments in his schemes, except as Donald explained, The big goose egg, nuttn, zero, zilch, zip, nada except a write-off. To open the coffee shop he was going to have coffee inventory and equipment to buy; he was going to have to pay the first and last months rent to the landlord; he would have leasehold improvements to do; and he would have advertising expenses. With no collateral and no successful business experience, Decalff wondered what other sources of financing might be available? Beatrice Biggering did not want to touch this one, so Calvin Calculus suggested some financing options.

Perry Problem was the next caller. He explained that he had a problem in his business. His employees were stealing product and he could not be there all the time to be catch them. Will Argue explained what he should do.

The next caller, Murdley Gurdsen, said he was driving home when he felt a terrible pain in his chest. He pulled over to the side of the road and wondered whether he was having a heart attack or whether it was the three Caliente Burritos he had eaten for lunch? After a few moments and a rather large burp, he decided the pain was just heart burn. However, he decided to get his estate in order. So, he asked Will Argue who explained what had to be done.

Lawrence Laidback, from the Federal Ministry of Trade, Tax and Tonnes of Forms, also suggested that once his estate was in order, Gurdsen should consider what would happen to his business if he was to pass away.

Then the Moderator, Walt Weederman, said, Well commuters, thats all the time we have on the show today. I want to thank our panel of guests and remind our listeners to tune in tomorrow when our guest speaker will be the renowned dentist, Dr. Yellin Yankum and our topic will be Root Canals - Another Necessary Evil of Life? So, until then watch the bumper of the fellow in front of you.

Mandatory Question 1. List and explain five things Dwight Bright should have done, or should do, to protect the intellectual property of his invention. Be specific about what needed to be protected and how.

Question 2. Professor Learned explained why Dwight Bright should have a business plan. What did the professor tell him?

Question 3. What are the five components of a business plan other than those items contained in the body of the plan that Prof. Learned mentioned to Dwight?

Question 4. List and briefly explain the financial statements Calvin Calculus suggested Dwight Bright should prepare for his Business Plan

Question 5. What sources of funding might be available to Carol Cautious according to Ms. Biggering?

Question 6. Explain Calvin Calculus suggestions to Donald Decaff?

Question 7. What did Will Argue suggest to Gurdsen about getting his estate in order?

Question 8. What was Lawrence Laidback suggesting to Gurdsen? And what are the three things he should consider?

Question 9. What suggestions did Will Ague make which would help Perry Problemestablish a more ethical business culture in his business?