1. Discuss three activities that are important to increasing the success of an enterprise. Three activities that are vital for increasing success ofan enterprise are as follows: a. Successful enterprises do not find any lack of funds. Whenever they require funds, many financiers agree to invest in those enterprises. b. Successful enterprises keep moving forward and keep developing their operations into a better form. c. Successful enterprises adapt to the changes very quickly that happen in their immediate environment and take the appropriate actions as quickly as possible. 2. What characteristics must all entrepreneurs have in order to be successful?
What evidence would you offer to support your viewpoint? In order to become a successful entrepreneur, following characteristics should be achieved by the businessmen: a. Successful entrepreneurs get their works done as quickly as they can without wasting too much time. b. Successful entrepreneurs have the ability to change with the changing business dynamics and environment. c. Successful entrepreneurs effectively utilizes their funds and do not waste it in unproductive stuff. d. Successful entrepreneurs maintain a network of business professionals and other contacts and make good public relations with other professionals e.
Successful entrepreneurs are highly confident in what they decide for their business and put their hardest of the efforts in achieving their goals. 3. Discuss four steps you can take when you are trying to create broad options in a negotiation. Four steps of negotiation are discussed in the following: a. Hierarchy: As part of preparation for negotiation, there is a strong need to make the hierarchy for topics to be discussed at the negotiation stage b. Give in and give up: At the negotiating stage, if one wants its point to be accepted by the other, he/she should accept the other’s argument as well. c.
If it is unfair, it is not safe: If one feels that the point he/she is going to make would not be fair enough, it means that point will not be safe and will be denied by the opponents. d. Fairness expected, fairness delivered: During the negotiation stage, is one assumes and has a strong belief that his/her point is fair, there are chances that his/her point will result in the acceptance. 4. Discuss four advantages of forming a corporation type of business. Following are the advantages of formation of a corporation: a.
Huge amount of finance can be raised to startup a business in the form of corporation. b. Corporations are entitled to act as a separate legal entity. c. Personal assets of the investors are not disposed off to settle the debt obligations in case of bankruptcy or liquidation. d. The corporations exist to carry on its operations for the foreseeable future. e. The ownership of corporations can be easily transferred from one investor to another. 5. Discuss four elements that must be contained in a contract in order for that contract to be a valid contract. The following are the elements which are essential for a valid contract: a.
Agreement between the two parties b. Consideration to be given by one of the contracting parties c. Capacity to enter into a contract d. Genuine assent to be made e. Purpose of the contract should be lawful f. Form of the contract should be lawful 6. Discuss what is meant by the concept of “mindfulness. ” Mindfulness is meant as the state or quality of a mind aware and knowledgeable regarding different aspects of the business.
In short, the ability of awareness is termed as mindfulness. 7. Describe four possible barriers to entry that a business can encounter when it attempts to start a new business. The following are the barriers to entry in order to startup a new business: a. Funding requirement: Lack of funds can become a hurdle to startup a new business. b. Lack of expertise: Special expertise pertaining to run a particular business is highly required. c. Lack of resources: Resources including capital and human resources may be lacking. d. Government Prohibition: Government might not permit the license to startup certain types of business. 8.
List four questions that you should ask yourself when you are attempting to develop a competitive strategy for your business. In order to develop a competitive business strategy, the following questions needs to be addressed: a. Would that strategy turned out to be beneficial for the enterprise in real terms? b. Would we be able to achieve the desired results from that competitive strategy? c. How would that competitive strategy be deployed? d. How would we make a change in the competitive strategy if the competitors used a better competitive strategy? 9.
Discuss the three types of firms that are categorized into a type of new business venture? The following are three types of entities that can be categorized into a type of new business venture: a. Sole Proprietorship: Sole Proprietor is the sole owner of the news and injects his personal equity into the business. b. Partnership: Partnership is that form of entity in which two or more people invest their money in the form of equity to the business in which each partner is entitled for the profits and losses proportioned to the amount of his/her investment. c.
Corporation: Corporation is the separate legal entity in which numbers of investors are too many from that of partnership. Profits in the form of dividends are declared by the discretion of the board of directors of the corporation. 10. Discuss the typical components of an agreement with a business broker if you are considering working with this type of professional in the purchase of an existing business. The typical components of a typical business broker agreement are listed below: a. Term: This component specifies the tenure of the agreement. b.
Performance: This element describes as how the agreement would be performed executed. c. Relationship: It specifies the relationship between the parties to the agreement. d. Compensation: This component highlights the compensations to be paid by the parties to the agreement along with the mode of payment. e. Broker’s Obligation: This element elaborates the obligations of broker under this agreement. f. Termination: This component outlines the ways in which the agreement can be terminated. g. Venue: This component describes the geographical location and the area where the agreement can be executed. h.
Signatories: This step specifies the signatures and undertakings of the parties to the contract. 11. Describe what a franchisee purchases from a franchisor when buying a business format type of franchise? In franchising purchase program, a franchisee normally purchases the right to use the name of franchisor for his/her business. Franchisors grant franchisees to use their names in terms of running their business. Generally, the franchisees invest at the point of sales of their respective franchisors to sell the goods and service originally bought by them with the backing of their franchisors’ brand name. 12.
Discuss several ways that one can shift their thinking about the future of the business to the current situation of the business. In order to reach a certain goal or objective it is vital to improve the present situation because present situation is what leads to the future. For improving the current business situation, it is essential to improve the business performance in all areas. It can be done by the following ways: a. Understanding your customers i. e. providing the appropriate products for specific group of customers b.
Learning from your customers i. e. reduced numbers of complaints c. Getting closer to the suppliers which means to take better control over production, supplies, choosing right supplier, improving supply chain process d. Inspirational leadership and better performance for instance replacing the leadership from autocratic style to charismatic and inspirational style e. Improving quality for example providing better quality products at more affordable prices f. Setting deadlines for the accomplishment of goals for instance generating $100,000 sales in 6 months 13. Discuss what a branding strategy is intended to accomplish with its target market. A branding strategy is used by the firms to give names to its existence, its products and its values.
Different brands give a sense of identity and recognition to the organization its products. Branding is made in order to create the image of the product or business in the minds of the potential customers and stakeholders in its intended form, so that the customers and other stakeholders perceive the brand as per the objectives and intentions of the organization. 14. Discuss the six steps in the selling process. Following are the six steps of the selling process: a.
Preparation: In this step, necessary planning and preparation is conducting for selling a particular item b. Introduction: This step relates to the first time encounter with the customer, so the salesman should introduce with the energy, positivity and the interest. c. Presentation: In this step, the goods and services offered to the customers are marketed to the potential customers and they are informed about the different features of the goods and services being offered. d. Overcoming Objection: This step pertains to the objections made by the potential customers regarding the goods and services being offered and then their objections are handled and overcome e.
Actual Sale: This is the step in which actual sale of the goods and services is made by transferring the ownership of the goods with the exchange of payment f. Follow up: The final step of sales process in which the customers are ensured to have them delivered after sales services in order to retain those customers for the future sales. 15. Describe the differences between an angel investor and a venture capitalist who might invest funds in a new enterprise. Angel investors are somehow different with venture capitalist despite of the fact that both of them eventually leave out from the business after achieving their goals from the organization.
Angel investors invest on individual basis at the startup of the business. Venture Capitalists invest in the mid way of the business. Angel investors invest in order to provide liquidity to the business required at the initial stage whereas venture capitalists provide finance normally for the survival of the business. 16. Describe what liquidity ratios tell you about the financial performance of a firm. Liquidity Ratios describe how well the organization is performing in terms of its operations.
These ratios include Current Ratio, Quick Ratio and Working Capital Ratios. In short, these ratios generally present how well the organization is dealing with its current assets and current liabilities. 17. Discuss the factors other than “money” that can serve as motivators for people at work. The factors that can motivate the workers other than money are the following: a. Promotion b. Better Working Condition c. Participation in Decision making process d. Employee Empowerment e. Awards, Medals, Souvenirs, Mementos 18. Describe how a company can become an HRO. A company can become High Reliability Organization if produces the capability of avoiding different sorts of unexpected situations yet exposing itself to risk factors. There are five characteristics that constitute a company into HRO.
They are: a. Concern with failure b. Unwillingness to simplify interpretations c. Sensitivity to operations d. Dedication to toughness e. Reverence to expertise In this way, the company would be perceived as HRO if the company becomes successful in demonstrating the aforementioned characteristics in its overall operations. 19. Discuss the various “exit strategies” that an enterprise can use to pass the business to the next owners. There are various exit strategies that are normally followed by the organizations in case when organizations want to either get rid of the unprofitable area of the business or to release the investments of its existing shareholders etc. Following are the major exits strategies that are generally followed. a.
Trade Sale: The existing shareholders sell out their equity to other shareholder groups b. Mergers & Acquisition: Two or more organizations shake hand and become one unit c. Management Buyout: The management of the company buys the equity of the organization d.
Employee Buyout: The employees of the company buy the equity of the organization e. Venture Capitalists: When organization’s stake is purchased by the venture capitalists till the achievement of a specific objective or time and after then they release their investments. 20. Describe the 4 Cs that should be addressed in the mission statement of a social enterprise. The 4 Cs that must be addressed by the social organizations in developing their mission statements are Customers, Commitment, Communication and Creativity a. Customers: In developing mission statements, the content of the mission statement should be customer centered as organizations are aimed to serve the needs of the customers. b.
Commitment: The element of commitment must be incorporated in the mission statement as the organizations are committed at serving different stakeholders. c. Communication: The mission statement should be designed in such a manner that it should communicate the basic reason for its formation rather than using vague sentences that may hinder the objective of mission statement to communicate the objective of organization to its stakeholders. d. Creativity: The content of mission statement should be creative enough to attract the stakeholders of the organization towards it. References Bygrave, William D., & Zacharakis, Andrew.
(2010). Entrepreneurship (2nd ed. ). New York: John Wiley and Sons.