Accounting records can be kept in just about any form as long as they provide users
with the data needed and are legally proper.
Many entrepreneurs successfully grow their firms, but fail to develop an effective exit
plan.
The three main considerations in structuring a channel of distribution are cost,
coverage, and control.
Fortunately for the entrepreneur, many property-oriented risks are insurable.
Fortunately, small international businesses do not face trivial problems, such as content
restrictions in television advertising, which allows these firms to focus their resources
on greater risks, such as the government takeover of the firm’s private assets.
Entrepreneurs frequently do not appreciate the difficulty of selling or exiting a business.
All other factors being equal, retail and services businesses will find little advantage in
selecting a location near the center of the market.
The limited use of discounted cash flow tools by a small firm probably has more to do
with the nature of the small firm itself than it does with the owners’ willingness to learn.
The leader of a family firm may safely ignore in-laws outside the business, though he or
she must carefully consider the views of in-laws who are members of the family firm.
Harvesting encompasses more than just selling and leaving a business.
Jesse Roth plans to open a new business that will deal in buying, selling, and trading
baseball cards, so he will be required to obtain legal registration.
List the three techniques for making capital budgeting decisions discussed in the
chapter. Which incorporate the time value of money?
Preparing a daily written plan of activities is useful in deciding which tasks deserve
highest priority.
The executive summary of a business plan presents a firm’s history and its form of
organization.
Pledging accounts receivable may limit a firm’s ability to borrow from a bank because
this practice removes a prime asset from the firm’s available collateral.