Before the midterm

Question 1

 What is entrepreneurship?

Answer 1

Strategic thinking and risk-taking behaviour that creates new opportunities. And building a sustainable business model.

Question 2

What are the five business formats?

Answer 2

Sole proprietorship
Partnership (agreement in writing!)
Corporation
Cooperative
Franchise

Question 3

Advantages/disadvantages of a sole proprietorship:

Answer 3

+/
Ease of formation (simple and inexpensive)
Basic requirements - name registration, licensing

-/
Unlimited liability (you’re on the hook)
Can be difficult to raise capital alone
Taxation rates can be higher than corporations

Question 4

Advantages/disadvantages of a partnership

Answer 4

+/
Allows pooling of talent and capital
Easier and cheaper to form than a corporation

-/
Partners are personally liable.
Any partner can force the firm to do shit
Difficult to change ownership
Raising capital can be tough
Rax rates can be higher than corporations

Question 5

Advantages/disadvantages of a corporation

Answer 5

\+/
Limited liability
Ease of transfer of shares
Can't be controlled by one shareholder
Separate from the person(s) running it
Can sell shares to raise capital
Altered tax rates

-/
Expensive to set up
High operational and admin costs
Double taxation (corporate income and shareholder dividends)

[Note]
Corporations can be public or private, or in governments, federal or provincial.

Question 6

Advantages/disadvantages of a co-operative

Answer 6

+/
No shareholder has more than one vote
Limited liability
Control is kept by the people that use the business

-/
No one person can dominate decisions
There’s no incentive to invest above and beyond since everybody gets the same kickback
Everybody shares in losses as well

Question 7

Advantages/disadvantages of a franchise

Answer 7

+/
Already successful business model

-/
Licensing fees
Restrictions on what you can do

Question 8

Mission Statements are…

Answer 8

Statements of the organization/individual’s purpose and why they exist. Who they are, what they do.

Question 9

Mission statements are important because they:

Answer 9

Clarify a core purpose
Guide the actions of the organization
Spell out overall goals
Guide decision making
Chart the future of the entity

Question 10

Value propositions involve:

Answer 10

What you can provide to the market
Why you’re unique
Why someone should purchase your services
How your offering can help someone reach their goals.

Question 11

What questions should you ask to develop a brand?

Answer 11

What is your business niche(s)?
What’s your value proposition?
What are your products or services?
What differentiates you from others? (overlap w/ V.P.)

Question 12

Things to include in a portfolio

Answer 12

List of accomplishments from work, volunteer experiences and academics.
Use a PAR format.

Question 13

What’s the PAR model?

Answer 13

Problem you were faced with
Action you took to face said problem
Results that came from your actions.

Question 14

Dafuq is SWOT?

Answer 14

An analysis tool for business and personal contexts.
Strengths and Weaknesses are internal
Opportunities and Threats are external.

Question 15

What are business plans?

Answer 15

The strategic and operational framework for running a business

Question 16

What are key elements of business plans?

Answer 16

Written
Nature of business and offerings
Market info
Advantages
Owners, their qualifications
Financial projections
Needed startup funding
Operational details
A path forward

Question 17

What are common causes of business failure?

Answer 17

Not enough capital
Poor pricing
Assuming you’re going to get customers fast
Not knowing about the market
Not accounting for setbacks/unexpected expenses
Your records suck
Losing track of the numbers - NEVER do this!

Question 18

What are financial statements and what are they used for?

Answer 18

They’re objective tools for keeping score of your biz
They’re useful communication tools for stakeholders
They’re needed to apply for loans

Question 19

What are the main two uses for financial statements, and how?

Answer 19

Management:
Compare how you're doing against the industry
Identify strengths/weaknesses
Identify improvement strategies
Useful for tax prep and valuation

Evaluation:
Lenders, to see if they should give you a loan or fuck that.
Customers, because they want reliable suppliers
Governments, for regulatory purposes and taxation.

Question 20

What are the three main financial statements?

Answer 20

Balance sheets
Income statement
Cash flow statement (A.K.A. budget)

Question 21

What do balance sheets contain, what are they good for?

Answer 21

They list what the business owns and what it owes.
They list outstanding debts and creditors
They list assets available for collateral

They tell lenders or investors about your liquidity and solvency position,

Question 22

What do income statements contain, what are they good for?

Answer 22

This lists revenues and expenses
They show economic profit for a period of time

These are usually put together every week by retailers
Lenders and managers use them to assess profitability, solvency, efficiency.

Question 23

What do cash flow statements contain; what are they good for?

Answer 23

Shows all cash coming in and out, and when. These are also called budgets.
Cash flow statements are considered the most powerful statement for managers.

They help lenders and managers:
Estimate cash surpluses and deficits
Shift the timing of cash flows
Determine what kind of loan you need, when to schedule payments.

Question 24

What’s the #1 most important resource you have? (besides time)

Answer 24

Cash.

Question 25

What is cash flow, how do you increase it?

Answer 25

incoming minus outgoing cash.

Increase by:
Collecting receivables
Tightening credit requirements
Using proper pricing
Manage expenses, down to only what's necessary and reasonable.

Question 26

How do you get customers?

Answer 26

Research and network to determine potential leads.

Qualify those leads by learning about their:
Business and its challenges
Market, and their position within it
Key competitors
Problems and pain points.

Question 27

In preparing for a cusomer meeting, what is the 5+5+5 of research you should be doing?

Answer 27

5 important facts about the company
5 intelligent questions to ask about the company
5 potential ways your product or service could assist

Question 28

What are useful information sources for preparing for a customer meeting?

Answer 28

Company reports
Personal contacts
Product complaints

Question 29

What are the six principles of the art of persuasion?

Answer 29

Liking/friendship (people like those that like them)
Reciprocity (give what you want to receive)
Social proof (we follow the lead of similar others)
Consistency (have one, unified, positive voice)
Authority (people defer to experts)
Scarcity (Rare? I want more.)

Question 30

What are the three steps to successful selling?

Answer 30

Make a connection with customers
Ask salespeople how to improve
Focus on the customer experience

Question 31

What is communication used for?

Answer 31

Exchanging information, opinions, ideas and feelings
Providing feedback
Reaching decisions
Solving problems
Making requests
Influencing others
Reaching understanding

Question 32

What are the four main methods of communication, and what’s something you can say about each one?

Answer 32

Oral:
Rapid and builds trust and openness

Written:
For official messages with long-term implications

Electronic:
Next-day, FYI and graphic content

Non-verbal:
Gestures and other movements

Question 33

What’s the first step of problem solving?

Answer 33

Define the problem. This is CRITICAL.

Question 34

What are the other elements of problem solving

Answer 34

Write down all the possible answers
Ensure that the problem statement only has one issue.
Communicating 75% of the story early is better than 100% late or after the fact.

Question 35

What are the steps in brainstorming?

Answer 35

Start with silent think time
Let everyone share ideas in order until everyone passes
Don’t make comments on ideas, just gather all of them regardless of how stupid.
Hitchhike - build upon ideas already presented

Question 36

What is the Nominal Group Technique, and what are its steps?

Answer 36

It’s used to create a consensus on the importance of proposals.
First, establish ground rules.
Then, everybody ranks each item.
Discuss the results and move forward.

Question 37

What’s a cause-and-effect (fishbone) diagram used for?

Answer 37

Identifying the root causes of issues

Question 38

What’s an affinity diagram used for?

Answer 38

Quickly organizing ideas and issues into patterns. Ensures participation.

Question 39

The fuck is a RACI chart? What are the letters?

Answer 39

Responsible: who performs a task? (this can be shared)
Accountable: who makes sure it gets done?
Consulted: Who do we check with before taking action?
Informed: Who do we keep in the loop?

Question 40

What are key characteristics of conflict?

Answer 40

The parties are interdependent
There’s a belief that goals are incompatible
There’s a sense of urgency
Conflict exists in all organizations
Conflict can affect relationships if not addressed

Question 41

What are the two types of conflict?

Answer 41

Substantive: disagreements over tasks, goals, resource allocation, policies and procedures etc.

Emotional: personal clashes, anger, fear, resentment, distrust

Question 42

Is conflict good or bad?

Answer 42

SOME conflict is a GOOD thing! It can stimulate new ideas of looking at issues and spark creativity.

N.B.: If conflict is too high (or too low) it’s destructive.

Question 43

What are the main types of conflict resolution?

Answer 43

Conciliation: 3rd party acts as a go-between
Arbitration: 3rd party acts as judge and makes a binding ruling
Negotiation: both parties work together for a mutually agreeable solution
Mediation: 3rd party assists with individual negotiations
Facilitation: 3rd party assists in group discussions

Question 44

What are characteristics of conventional negotiating?

Answer 44

Focus on winning (WIIFM)
Assert positions and personal preferences
Stubbornly concede
Seeking compromises based on arbitrary dividing lines
Threats, bluffs, or other negotiation tactics

Question 45

What are steps to negotiating successfully?

Answer 45

Develop ground rules
Jointly identify issues
Explore interests
Develop objective standards
Brainstorm options
Evaluate the options using the standards
Try to arrive at a consensus

Question 46

What are characteristics of effective meetings?

Answer 46

Clearly defined goals, with an agenda distributed ahead of time
All agenda items covered, goals met
Key players show up
Stays on schedule and on track
Minimal disruptions
Clear decisions
Next steps documented
Solid minutes produced fast and sent out

Question 47

How can you plan effective meetings?

Answer 47

A huge amount of time is wasted on poor meetings.

Start with the end in mind – what problem(s) are we trying to solve?
Design agenda items to meet outcomes (what’s best, presentation, activities, workshop?)
Execute the agenda and write everything down.
• Who has to do What, by When?