Job shops in manufacturing use specialized equipment.
What are the weaknesses of interviewing, and how can interviewing be used effectively
in selecting employees?
The income statement shows a firm’s financial position on a specific date.
With an initial public offering, the entrepreneur’s goals and motivations are likely to be
very different from those of the investment banker.
Commercial investors are sometimes called business angels.
Joining with another firm to promote products is a form of strategic alliance.
Unions typically concentrate their primary attention on small companies, where their
influence is most needed.
In order to be enforceable, warranties must be in writing.
What sources of funds are available to businesses?
According to the definition of entrepreneur given in Chapter 1, owner-managers who
buy out founders of existing firms may be classified as entrepreneurs.
Small businesses must strive to recognize cognitive dissonance among their customers
and to manage it effectively.
A consumer’s recognition of a problem can be characterized as routine if the problem
occurs infrequently, evolves over time, and requires much thought by the individual.
Purchasing activities are used to obtain materials, merchandise, equipment, and services
to meet production and marketing goals.
Agency power is the ability of any partner to legally bind in good faith other partners in
a contract or agreement.
You Make the CallSituation 1
David Bernstein needs help financing his Lodi, New Jersey”based Access Direct Inc., a
six-year-old $3.5 million company. “We”re ready to get to the next level,” says
Bernstein. “But we”re not sure which way to go.” Access Direct spruces up and then
sells used computer equipment for corporations; it is looking for up to $2 million in
order to expand. “Venture capitalists, individual investors, or banks,” says Bernstein,
who owns the company with four partners, “we”ve thought about them all.”
Question 1 What is your impression of Bernstein’s perspective on raising capital to “get
to the next level”?
Question 2 What advice would you offer Bernstein as to both appropriate and
inappropriate sources of financing in his situation?
Efforts to exploit the competitive advantage of specialized products across international
markets may be more important to small businesses than to their large competitors.
Distinguish between general-purpose and special-purpose equipment in a factory
setting, and cite the advantages of each.
Entrepreneurs often do not make good employees.
Working-capital management focuses on the attractiveness of long-run investment
opportunities.