How can a business owner assure the accuracy and provide a level of legitimacy in their financial statements?
> You are the manager of a firm that charges customers $16 per unit for the first unit purchased and $12 per unit for each additional unit purchased in excess of one unit. The accompanying graph summarizes your relevant demand and costs. a. What is the ec
> Based on the following graph (which summarizes the demand, marginal revenue, and relevant costs for your product), determine your firm’s optimal price, output, and the resulting profits for each of the following scenarios: a. You charge
> Based on the best available econometric estimates, the market elasticity of demand for your firm’s product is –3. The marginal cost of producing the product is constant at $100, while average total cost at current production levels is $175. Determine you
> As an online video commentator, you are committed to offering your videos without ads. Until now, you’ve experimented with different per-video prices for your content and collected user level data on the number of videos viewed in a week at different pri
> Your company just became international, by offering its products in both the United States and Canada. Experts in your analytics department believe that tastes for your product differ in those two countries and have carefully collected data on prices and
> You manage a company that competes in an industry that is comprised of four equalsized firms that produce similar products. A recent industry report indicates that the market is fairly saturated in that a 10 percent industrywide price increase would lead
> An analyst for Food Max estimates that the demand for its Brand X potato chips is given by ln Q Xd = 12.14 – 2.8ln PX + 3.4PY + 0.7ln AX, where QX and PX are the respective quantity and price of a four-ounce bag of Brand X potato chips, PY is the price o
> Suppose the European Union (EU) is investigating a proposed merger between two of the largest distillers of premium Scotch liquor. Based on some economists’ definition of the relevant market, the two firms proposing to merge enjoyed a combined market sha
> Under what conditions might the Justice Department approve a merger between two companies that operate in an industry with a premerger Herfindahl-Hirschman index of 2,900 if the post merger index is expected to increase by 225?
> Heathrow Airport Holdings is a private company that operates Heathrow Airport in London. Suppose the company recently commissioned your consulting team to prepare a report on traffic congestion at Heathrow. Your report indicates that Heathrow is more lik
> Many home improvement retailers like Home Depot and Lowe’s have low-price guarantee policies. At a minimum, these guarantees promise to match a rival’s price, and some promise to beat the lowest advertised price by a given percentage. Do these types of p
> As a manager of a chain of movie theaters that are monopolies in their respective markets, you have noticed much higher demand on weekends than during the week. You therefore conducted a study that has revealed two different demand curves at your movie t
> Blue Skies Aviation is a manufacturer of small single-engine airplanes. The company is relatively small and prides itself on being the only manufacturer of customized airplanes. The company’s high standard of quality is attributed to its refusal to purch
> You own a franchise of rental car agencies in Florida. You recently read a report indicating that about 80 percent of all tourists visit Florida during the winter months in any given year and that 60 percent of all tourists traveling to Florida by air re
> The American Baker’s Association reports that annual sales of bakery goods last year rose 15 percent, driven by a 50 percent increase in the demand for bran muffins. Most of the increase was attributed to a report that diets rich in bran help prevent cer
> According to International Data Corporation (IDC), the number of worldwide smart phone owners will soon exceed 3 billion. That number is expected to grow at nearly 10 percent per year for the next five years. While the actual cost of a smart phone is abo
> You are the manager of a local sporting goods store and recently purchased a shipment of 60 sets of skis and ski bindings at a total cost of $25,000 (your wholesale supplier would not let you purchase the skis and bindings separately, nor would it let yo
> You are a pricing analyst for QuantCrunch Corporation, a company that recently spent $15,000 to develop a statistical software package. To date, you only have one client. A recent internal study revealed that this client’s demand for your software is Q d
> You are the owner of a local Honda dealership. Unlike other dealerships in the area, you take pride in your “no-haggle” sales policy. Last year, your dealership earned record profits of $1.3 million. In your market, you compete against two other dealers,
> Evaluate the following statement: “Managers should specialize by acquiring only the tools needed to operate in a particular market structure. That is, managers should specialize in managing either a perfectly competitive, monopoly, monopolistically compe
> Does the presence of online auction sites, such as eBay, make it easier or harder for traditional retailers and wholesalers to engage in profitable price discrimination? Explain.
> According to some translations, Nobel Laureate Albert Einstein once said, “God does not play dice with the universe.” Does this mean that a profit-maximizing firm would never use something like dice or a roulette wheel to help shape its pricing decisions
> A large firm has two divisions: an upstream division that is a monopoly supplier of an input whose only market is the downstream division that produces the final output. To produce one unit of the final output, the downstream division requires one unit o
> You are the manager of a firm that produces products X and Y at zero cost. You know that different types of consumers value your two products differently, but you are unable to identify these consumers individually at the time of the sale. In particular,
> A monopoly is considering selling several units of a homogeneous product as a single package. Analysts at your firm have determined that a typical consumer’s demand for the product is Qd = 80 − 0.5P, and the marginal cost of production is $100. a. Deter
> You are the manager of a monopoly. Your analytics department estimates that a typical consumer’s inverse demand function for your firm’s product is P = 200 − 20Q, and your cost function is C(Q) = 80Q. a. Determine the optimal two-part pricing strategy. b
> Use the following normal-form game to answer the following questions. a. For what values of x is strategy D (strictly) dominant for player 2? b. For what values of x is strategy B (strictly) dominant for player 1? c. For what values of x is (B, D) the on
> Use the following normal-form game to answer the following questions. a. Identify the one-shot Nash equilibrium. b. Suppose the players know this game will be repeated exactly three times. Can they achieve payoffs that are better than the one-shot Nash e
> Use the following payoff matrix for a simultaneous-move one-shot game to answer the accompanying questions. a. What is player 1’s optimal strategy? Why? b. Determine player 1’s equilibrium payoff.
> In a two-player, one-shot, simultaneous-move game, each player can choose strategy A or strategy B. If both players choose strategy A, each earns a payoff of $400. If both players choose strategy B, each earns a payoff of $200. If player 1 chooses strate
> A firm has $1.6 million in sales, a Lerner index of 0.55, and a marginal cost of $45, and competes against 1000 other firms in its relevant market. a. What price does this firm charge its customers? b. By what factor does this firm mark up its price over
> China’s entry into the World Trade Organization (WTO) in 2001 created more competition between local and foreign firms, and also provided China greater access to the market for exports. This was particularly true in the market for rubber since, at the ti
> Discuss the similarities and differences between entrepreneurial businesses and large businesses.
> What is a business incubator? How do they assist entrepreneurs with new business startups?
> Suppose you are a new entrepreneur and you hired several family members to fill key positions vacant at your new business. Discuss the ethical issues that might arise between the employees that are relatives and the other employees that work at your new
> Consider the reasons why potential entrepreneurs decide to pursue entrepreneurship. Compare and contrast personal motivations with circumstance motivations. Discuss what motivates you to consider entrepreneurship.
> Define a stakeholder and discuss the individuals and groups that qualify as stakeholders.
> Discuss the advantages and disadvantages associated with entrepreneurial business ownership.
> Define gap analysis. Discuss how innovative individuals utilize it with their individual skills and abilities to reveal new entrepreneurial opportunities.
> Define economies of scale and discuss why they are important in both large and small industries?
> What is the function of a business broker? How can a business broker assist an individual to purchase a franchise?
> What is the process associated with the change in ownership from the former business to the new business? Describe the tasks that should be completed during the transition time period.
> What is a budget? Why is it important? Discuss the differences between a budget and cash flow. Be specific.
> How does float affect a cash flow statement?
> What are the processes associated with the purchase of a franchise?
> What are the specific issues to consider in examining which franchise to purchase? Be specific.
> What are some of the resources that an individual can use to purchase a business? Who can an individual use to assist with this business purchase?
> What are the Government Requirements for the Franchisor/Franchisee Relationship? Why are these requirements important in the franchise industry?
> What is the risk associated with the purchase of a franchise? Be specific.
> Why would a business owner want to close the business instead of reorganizing the business?
> How can a Board of Advisors assist business owners with the challenges they face in a small business?
> When would a business owner want to turnaround the business?
> What is equity? Discuss the advantages and disadvantages to the business owner. Be specific.
> Why is it important to consider an exit strategy at the formation of the new business?
> Why is a budget statement not a cash flow statement? How do they differ?
> What are the four options that a business owner can choose from to exit the business? Which one provides the simplest exit strategy?
> What is an initial public offering?
> Compare and contrast a strip shopping center and an anchor store.
> Discuss why location is one of the most important steps in the critical path chart. Why is location critical to the success of the new small business?
> Why is financing critical to the success of the new small business? Summarize the items that a new small business owner must pay in order to initiate a new business.
> Define the term legitimacy. Why do new small business owners seek it? List the items that new small business owners can implement to establish legitimacy for their new small business.
> What is a production management system? What are the two most important elements to production management as they relate to small businesses?
> What is a production chart? Discuss the similarities and differences between a production chart and a critical path chart.
> What is a balance sheet? Why is it useful? What is the difference between a pro forma balance sheet and a balance sheet?
> Explain why firms invest in quality. Why do they design quality into their products or services?
> Summarize why firms create strategic alliances. Why are they beneficial?
> What are the basic elements of a cash flow statement for an entrepreneurial business?
> What is time management? Why is it important to the new small business owner? List the five steps that business owners implement to assure they utilize their time in an effective and efficient manner.
> List the ten actions that new small business owners implement prior to the establishment of their new small business. Explain why each is important.
> What is a contract sales force? Describe a situation when this distribution channel is beneficial to a new small business owner.
> Summarize the two methods used to estimate sales. What are the advantages and disadvantages of each of these methods?
> What are the two groups of mixed promotions? Why are they beneficial to the new small business owner?
> Discuss pure promotion advertising. List the six categories and describe them.
> In reference to cost-plus pricing, discuss the comparison effect. Why do consumers use it? Provide an example.
> Discuss the purpose of a cash flow statement. What are the key issues associated with developing a cash flow statement?
> Summarize the cost-plus pricing method. Why is this method of pricing difficult to implement?
> Discuss the four methods of distribution that an entrepreneur evaluates for the new small business. Summarize why each is beneficial and describe when they are appropriate to use.
> What is a marketing plan? Who should develop it? How does it help the new small business owner?
> How are cash flow and profit related?
> Why are minority women-owned firms so popular? In your opinion, does the glass-ceiling exist? Do you believe that it is a barrier that prevents women from promotions to executive-level positions in corporate America?
> Why do the marketing efforts of a firm need to be stated in the mission statement?
> Ask students to summarize the issues that need to be considered in the sales management process. Specifically, list the seven steps and discuss why they are important to consider.
> What is unemployment compensation? Why do small business owners pay an unemployment tax to help fund the system?
> What is the Occupational Safety and Health Administration (OSHA)? Explain why it is important to a business owner. Be specific.
> Discuss the elements of human resources. Why are they important?
> Discuss the differences between cash flow and profit. When does a firm obtain a profit?
> Explain how an employee with poor performance impacts a small firm. How does it impact a larger firm?
> Discuss how small business owners retain employees. Discuss the different compensation methods as they relate to the small business.
> Explain why benefits are an important part of employee compensation?
> Discuss why human resource managers and small business owners document employee positive and negative employee behaviors?
> Why is worker’s compensation important to a new small business owner?
> What is Entrepreneurial Breakeven?
> Discuss how performance reviews can help an employee to improve job performance. Be specific.
> Summarize some of the human resource management issues that can occur within a family owned business. Discuss some of the specific obstacles that occur in family owned businesses. What can the business owner implement to assure the business runs in the o
> Explain the features and benefits of a patent. How long do they last? Where are patents filed and what agency accepts or declines them? Do patents provide organizations with a sustainable competitive advantage?
> What is a Board of Directors or Board of Advisors and why do entrepreneurs form them? What do they do for the small business?
> Explain the similarities and differences between fixed costs and variable costs. Provide specific examples of each and explain how they relate to the break-even analysis calculations.
> Discuss the similarities and differences of an S Corporation and a C Corporation. Do some online research and list at least two existing businesses that are an S Corporation and a C Corporation. What do these corporations sell or produce?
> Discuss why entrepreneurs need to have legal contracts when they conduct business. What are the important elements of a contract? What are the disadvantages if the entrepreneur fails to negotiate a legal and valid contract?
> What can entrepreneurs purchase to minimize the amount of risk in the new business? What are the disadvantages to the new small business owner if they fail to obtain it?
