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MGT 353 > Midterm > Flashcards

Midterm Flashcards

1
Q

Why should you compete in a business plan contest?

A

opportunity to make business come to life

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2
Q

Small business defined – how is it defined in practical terms and how does the government define it

A

Measured by some variable typically sales or number of employees size standards and are usually based on average annual recepits or average number of employees.

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3
Q

What industries are most popular for small business? Why might this be?

A

-Service 50%, retail 13%, construction 13%, wholesale 6%, finance insurance, manufacturing, transportation, other

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4
Q

Is small business important to the U.S.? What evidence supports this claim?

A

Small business constitutes a major force in U.S. economy there are more than 27 million small business in the Us and they generate 50% of GDP the millions of individuals who have started businesses in the U.S. have shaped the business world as we know it.

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5
Q

Advantages of owning/working for small business

A

Closer relationship to stakeholders, flexibility to adopt new processes, services, small businesses are independent, encourage competition to help prevent monopoly, owners of small businesses retain an element of control, produce well-rounded managers they call the shots, great income potential, do something you enjoy, schedule flexibility, learning opportunities

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6
Q

Disadvantages of owning/working for small business

A

demanding schedule, financial risk, liability, stress, undesirable duties, inability to hire qualified employees, lack of funding to promote and expand, limited or non existent credit, cutthroat competiton

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7
Q

What is the SBA?

A

U.S. small business administration helps americans start, build, and grow businesses

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8
Q

When was SBA founded? What purpose does it serve?

A

SBA was created in 1953 to aid, council, assist, and protect the interests of small businesses.

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9
Q

What is SCORE? What does it do?

A

SCORE stands for sevice corps of retired executives. SCORE allows current business professionals to serve as mentors to small business operators.

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10
Q

What other resources/programs are available to startups/existing small businesses? How are their services and motives different?

A

Small business development center, regional economic development partnership, incubator, chamber of commerce, trade associations, colleges & universities, professional associations, suppliers and equipment manufacturers.

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11
Q

What differences exist between buying an existing small business and starting a small business from scratch?

A

Purchasing an established small business is less hectic compared to a start up process however still requires lots of work. Must still perform background investigation involving personal obligation of the business talking to people that are more knowledgable about

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12
Q

What are some best practices for buying an existing small business?

A
  • Can I manage business? Will I enjoy it?
  • Why is the business for sale?
  • How does the business compare to competition?
  • What reputation does the owner have?
  • What do finances of bisiness look like in next 1-5 years?
  • Customer base growing or shrinking?
  • Good relationship with suppliers?
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13
Q

Advantages of buying an existing small business

A

business is established location, business already has customers and suppliers, profits may be earned quickly as start up time is less, Profits may be earned quickly as start up time is less, training may be available through seller, finding a business owner that is eager to sell can lead to a good price

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14
Q

Disadvantages of buying an existing small business

A

buyer would inherit ill will created by previous owner, building and layout could need modernized, current inventory could be slow moving/obsolete, sellers credit practices could be poor, unwanted or uneccessary employees may come with the business

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15
Q

What must a prospective buyer consider when buying a small business?

A

Examine product life cycle, research the location, do physical examination of business, evaluate neighboring businesses, interview customers, check with local authorities to see if any issues, business valuation

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16
Q

three basic approaches to valuing a business

A

Asset approach- determining a value indication of a business, business ownership, interest, or security using one or more methods based on value of assets net of liability.
Income approach- determining the value of a business, business, business ownership, interest, or security or intangible asset using one or more methods that convert anticipated ecomonic benefit
Market approach- by using one or more methods that compare subject to similar business/buyer

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17
Q

What does a business appraiser do?

A

Value a business

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18
Q

Difference between franchisor/franchisee

A

A franchise is a relationship between franchisor (seller) and franchisee (buyer) in where franchisor grants franchisee the right and license to sell a product ot service developed by franchisor.

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19
Q

What is a NAICS code?

A

North American industrial classification systemAnalysis and publication of statistical data related to U.S. economy helps a business choose desiered industry.

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20
Q

What should you know about your industry and local business area?

A

Use market research to find customers it is crucial to understand customer base
Know: demand, market size, economic indicators, location, maket saturation, & pricing

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21
Q

Barriers to Entry - What are they and do they impact a small business?

A

. Ex of barriers to entry: High investment cost, time it takes to set up business, changing technology, lack of quality personnel, customer resilience, patents, zoning laws

22
Q

Porter’s Five Forces Model – What are they? What does it tell us and why is it good to do in the planning stages of a business?

A

Character of rivalry- how intense is the competition in industry in which your business will be competing
Threat of new entrants- Easier it is to enter an industry less attractive the industry ‘
Threat of substitues- easier it is to find substitutes or different product ot service to accomplish some purpose less attractive the industry
Bargaining power of supplier- greater the bargaining power of suppliers relative to industries firms less attractive the industry
Bargaining power of buyers- greater the bargaining power of buyers relative to firms industry less attractive the industry.

23
Q

How would you ab developing target market?

A

Typical customer for business narrow it down from everyone to one-two key groups using demographic variables such as age range, gender, education level, income level, geographic area and lifestyle

24
Q

Market tests – what are they, why do them?

A

Why this customer has a need for your product? What need will you fill? Market tests include things such as surveys, focus groups, distribution of samples, meet with likely custoemrs with prototype to get thoughts attend trade shows, and personal observation

25
Q

How is a SWOT analysis helpful in analyzing the competition?

A

identify key competitors for your business, which will pose biggest threat to your business potential? Identify strengths and weaknesses also opportunities and threats

26
Q

What is the UPA? What is its purpose?

A

Uniform partnership Act provides governance for business partnerships in several U.S. States. UPA also offers regulations governing the dissolution of a partnership which partner disassociates

27
Q

Describe the business registration process and how it might vary from business to business and place to place

A

Different business legal structures have different debt and taxation inability vary from location, legal structure, industry and business size
Different structures, state, county, city level

28
Q

Generally speaking, how is the registration process impacted by legal structure selection?

A

Structures decision has huge ramifications in legal regards, huge financial implications for the business. Particularly, in ares of liability for debt and taxes.

29
Q

What general types of registration/licensure/permits can reasonably be expected at each level of government?

A 
Busienss licenses/ tax permits-from city or country 
Building permit-from city or country 
Occupational permit-from city or county 
Siganage permit-from city or county 
Alarm permit-from city or county 
Zoning-from city or country
30
Q

What is workers’ compensation insurance? What type of businesses are typically required to have it?

A

If business has at least one employee in WV is also required to file for unemoloyment insurance coverage with state unemployment insurance provides temporary income replacement for these elt go from jobs for no fault of their own

31
Q

What is unemployment insurance? What type of business are typically required to have it?

A

Every business with at least on employee in WV is also required to file for unemployment insurance provides temporary income replacement for those elt go from jobs for no fault of their own.

32
Q

What are some tips for maintaining your business licenses?

A

Keep track of renewal dates-licenses expire after certain time period/maintain copy of licenseing application forms in safe place

33
Q

1) What is the difference between a mission and a vision? Why is it important for small businesses to have both?

A

Vision- desired future state

Mission- about the present mention: company’s product, customers, how they provide value

34
Q

2) How do core values impact a business?

A

They serve as the backbone for every decision your business makes.

35
Q

3) Why does a business need objectives if it already has a vision, mission, and core values?

A

Way to measure whether or not the vision and mission are being met and the core values fulfilled, this is accomplished through setting objectives.

36
Q

4) What are the five general business-level strategy options

A
  • Cost leadership –“acceptable quality at consistently lower production costs to offer the product or service at the lowest price”
  • Differentiation- Being sufficiently different from competitors offerings that customers are willing to pay a premium price
  • Focus-using cost leadership or focused differentiation to product a specialized product or service for a limited, specially targeted group of customers in a particular geographic region or market segment”
  • Best-cost- a hybrid strategy comprised of a mix of cost leadership and differentiation.
37
Q

5) What are the four P’s of marketing? How do they apply to small business? How can a small business use them to create demand? What sort of different considerations exist for small businesses as compared to large businesses? Why is it important for small businesses to think about the four P’s strategically?

A

-The four P’s: Product, Price, Promotion and place.
The four P’s is very similar in small business.
Small businesses typically lack the knowledge needed to maximize the use of the four P’s.
Strategic marketing means that the four P’s are being integrated in their use as opposed to each one being treated independently.

38
Q

6) Naming a small business- What are some best practices?

A
  • Getting it right the first time
  • Names communicate something
  • key starting point for branding efforts
39
Q

7) What are some newer/cheaper/ innovative ways to market a small business?

A
  • TikTok is a relatively new platform that is highly popular
  • Vehicle branding
  • social media
  • use hashtags
40
Q

8) Importance/benefits of social media to small business?

A

Social media efforts create exposure for the business and help drive traffic both-foot-and web.

41
Q

9) How should small businesses use social media? Best purposes?

A

use it to expand your audience

  • post content regularly and reply to customers
  • to build relationships
  • track and refine your performance
  • get to know your audience
42
Q

10) What are some social media dos and donts for small businesses?

A

Only having an Instagram account, facebook page, or twitter feed for the small bisiness is not enough though.

  • Social media must be properly executed.
  • Content must be engaging an duodated frequently.
  • Customers and other business contacts must have a reason to first follow and then remain followers.
43
Q

11) What are some possible social media goals for small businesses?

A

Increase brand awareness/drive traffic to website/ generate new leads/ grow revenue/ boost brand engagement/ build a community around your business/effective social customer service/ increase mentions in the press/ never miss a mention through social listening

44
Q

What is a job analysis?

A

Brain storming activity- foundation of HR activities Information contained for each section:Tasks or job functions, Scope of responsibility, Tools and equipment used

45
Q

What is a job description?

A

Systematic, detailed summary of job tasks, duties, and responsibilities

46
Q

What is a job specification?

A

A detailed summary of qualifications needed to perform required job tasks

47
Q

What are the three main categories and six steps to the HR process

A

HR process; attracting qualified employees, developing qualified employees, and keeping qualified employees

48
Q

Compare/contrast the HR process in a small business as compared to a large business

A
  • Small businesses have limited financial resources
  • Small businesses thar are unable to match wage/salary and benefits of larger businesses should look to make their workplaces more enjoyable and fulfilling for employees.
  • Large businesses and small businesses both lose employees
  • Larger businesses have the staff technology and financial resources necessary for a good training program
  • small businesses rely on-the-job training
49
Q

What sort of workplace posters might a small business be required to post?

A

Employment laws require businesses to place posters in areas that are visible to employees. These posters include: Employee rights, federal employee rights, coronavirus response act, families first response act, ectc.

50
Q

How does new hire reporting work?

A

Employers in all 50 states are required to report new hires to their respective states.

51
Q

What sort of information must be reported about the employer and employee?

A

FEIN number, employer name, employer address, employee social number, employee name and address, employee start date, employee state of hire..

52
Q

How soon must this occur?

A

WV requires all employers to subit their new hire reports within 14 days after the employee is hired.

MGT 353 (1 decks)

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