Risk management and insurance management are synonymous.
Although the owner of a small business does not make long-term investment decisions
often, capital budgeting is nonetheless important to the successful operation of the firm.
A franchise is typically attractive because it offers training, financial assistance, and
operating benefits.
What are the major differences between manufacturing and service operations?
A utility patent covers the appearance of a product and everything that is an inseparable
part of the product.
If the internal rate of return is less than the firm’s cost of capital, the project should be
accepted because capital for the project can be obtained more cheaply than usual.
Advertising seeks to sell by informing, persuading, and reminding customers of the
existence or superiority of a firm’s product or service.
Applying the laws of motion economy can often make work easier and more efficient.
In order to achieve market success, a firm merely needs to concentrate on either
providing an excellent product/service or devising an insightful marketing strategy.
For the manager, the control function is the same thing as the planning function.
Many entrepreneurs are people of principle, and integrity regulates their quest for
profits.
Owing to the precision of the formulas that guide practice, many think of business
valuation as an exact science.
Advertising agencies can furnish small firms with design, artwork, and copy for
specific advertisements or commercials.
You Make the Call – Situation 1
Sally started her consulting business a year ago and has been doing very well. About a
month ago, she decided she needed to hire someone to help her since she was getting
busier and busier. After interviewing several candidates, she decided to hire the best one
of the group, Mary. She called Mary on Monday to tell her she had gotten the job. They
both agreed that she would start the following Monday and that Mary could come in
and fill out all the hiring paperwork at that time.
On Tuesday of the same week, a friend of Sally’s called her to say that she had found
the perfect person for Sally. Sally explained that she had already hired someone, but the
friend insisted. “Just meet this girl. Who knows, maybe you might want to hire her in
the future!”
Rather reluctantly, Sally consented. “Alright, if she can come in tomorrow, I”ll meet
with her, but that’s all.”
“Oh, I”m so glad. I just know you”re going to like her!” Sally’s friend exclaimed.
And Sally did like her. She liked her a lot. Sally had met with Julie on Wednesday
morning. She was everything that Sally had been looking for and more. In terms of
experience, Julie far surpassed any of the candidates Sally had previously interviewed,
including Mary. On top of that, she was willing to bring in clients of her own which
would only increase business. All in all, Sally knew this was a win-win situation. But
what about Mary? She had already given her word to Mary that she could start work on
Monday.
Source: SBA Management Institute, “Business Ethics: The Foundation of Effective
Leadership,” http://www.onlinewbc.org, September 27, 2000.
Question 1 What decision on Sally’s part would contribute most to the success of her
business?
Question 2 What ethical reasoning would support hiring Mary?
Question 3 What ethical reasoning would support hiring Julie?
It is easier to implement internal controls in a small firm.
Capital budgeting primarily involves short-term decisions on the part of management.
List and briefly explain the six categories of “desirable and acquirable attitudes and
behaviors” found in Timmons and Spinelli’s research on entrepreneurial characteristics.
The prospective investor usually plays the role of the encourager, often seeing market
potential in a business plan that others overlook.