Effective Small Business Management: An Entrepreneurial Appr

Effective Small Business Management An Entrepreneurial Approach9th Ed

Effective Small Business Management: An Entrepreneurial Approach 9th Edition, 2009 ISBN-13: Norman M. Scarborough, Douglas L. Wilson, and Thomas W. Zimmerer 19 Multiple Choice Questions 1. The location of the business is especially important for what type of start-up businesses? a. service
 b. manufacturing
 c. retail
 d. computer-based service 
 2.

The limited liability company is most like a/an: a. S-corporation 
 b. master partnership 
 c. sole proprietorship 
 d. general partnership 
 3. Which of the following is true about choosing a limited liability company form of ownership? a. It is inexpensive, easy to form, and covered by little regulation due to its newness. 
 b. It has no disadvantages except its newness. 
 c.

It’s an excellent conversion vehicle for existing businesses that are suffering from double 
taxation but problematic for sole proprietorships. 
 d. It is ideal for a new company but difficult to convert to with an existing company. 4. Typically, the franchiser controls are very tight on what the franchisee: a. sets in terms of retail pricing and hours of operation. 
 b. does in terms of who they hire as employees. 
 c. sales in terms of the product or service they offer. 
 d. does with his/her net profits after fees and taxes are paid. 
 5. The recommended steps when buying a business are: a. analyze your skills and abilities b. explore a variety of financing options c. investigate the potential acquisitions d. all of the above 6.

Using the discounted future earnings approach, the buyer estimates a. the company’s net income for the several years b. the company’s net income for the next six months c. the company’s net income for several years and then discounted back to the present value d. the company’s net asset for several years and then discounted back to the present value 7. Potential investors tend to believe that if an entrepreneur can’t develop a good plan: a. then the entrepreneur is just like the majority of entrepreneurs and will probably do quite well b. he/she probably lacks the discipline to run a business c. he/she is probably the action-oriented sort of person they need running a business d. he/she needs to hire a consultant to write the plan for him/her 8.

Defining the target market’s potential and describing its characteristics is part of the: a. marketing strategy portion of the business plan b. competitive analysis c. description of the product line d. business strategy section of the business plan 9. An explanation of how the product will be distributed is contained within the: a. business strategy section of the business plan b. description of the product line c. marketing strategy portion of the business plan d. competitive analysis Unit 2 Examination 10. A description of the key factors that will dictate the success of your business quality, price competitiveness, etc. should be contained in the ________ section of the business plan. a. executive summary b. market analysis c. description of the business d. competitor analysis 11.

The marketing plan should include certain key objectives, such as: a. determining product costs through market research b. determining what costing strategies to use c. pinpointing the specific target markets a small business will serve d. discovering what the company’s ETDB index is 12. A demographic trend is like a train for the small business owner in that: a. the small business will be “run over†if it doesn’t get out of the way and try to work with the “spin-offsâ from the trend b. he/she needs to catch it and ride it to wherever it is going c. he/she needs to discover where it is going early and decide whether or not to get on board d. it is a slow process that is easily caught at several points, and the small business owner has lots of time to consider his/her options 13.

To build an effective customer service program, it is important to: a. swiftly discipline employees who mistreat customers b. offer low prices c. train key employees to watch for and intervene when there are problems let managers wait on d. customers occasionally 14. The cost of marketing a product is highest in the: a. saturation stage b. introductory stage c. growth and acceptance stages d. maturity stage 15. The choice of advertising medium is primarily determined by: a. what media the competition uses b. the unique selling proposition and budget c. the target audience and the message d. what media the industry focuses on 16. Radio: a. can reach nearly any target market b. is the one medium that customers spend the most time paying attention to c. is the most expensive advertising medium in terms of relative costs d. is very susceptible to “zappingâ 17.

When pricing products, it is important to remember that: a. pricing is more an intuitive than a quantitative process b. a customer orientation in price setting is most important c. there is an ideal price that customers will pay for a given product or service d. once the acceptable price range is found, prices should not be changed again 18. ABC manufactures computer hardware. The marketing executives, in order to increase the market share, forced a business to accept a suggested retail price and not to sell the items below the stated price. This is a violation of what? a. As long as the manufacturer offer rebates, they can do whatever they want. b.

This practice violates the Fair Price Protection Act c. This practice violates the Sherman Antitrust Act. d. There is no violation. The manufacturer has the rights to tell a business at what price they should resell the computer. 19. In regards to strategies for E-success, which goal(s) of e-commerce are no different from traditional off-line businesses? a. boost profits b. improve efficiency c. to increase sales d. all of the above

Effective Small Business Management An Entrepreneurial Approach9th Ed

This assignment involves a comprehensive analysis of key concepts related to small business management as outlined in the 9th edition of "Effective Small Business Management: An Entrepreneurial Approach" by Norman M. Scarborough, Douglas L. Wilson, and Thomas W. Zimmerer. The focus is on understanding various aspects such as business location, ownership structures, franchise control, business valuation, market analysis, marketing strategies, customer service, pricing, advertising, legal considerations, and e-commerce strategies. Your task is to carefully review the multiple-choice questions provided, synthesize the fundamental principles and best practices they reveal, and produce a detailed, well-structured academic paper that covers the essential themes in effective small business management.

Paper For Above instruction

Small business management encompasses a variety of strategic and operational considerations that are vital for entrepreneurial success. From location choice to legal structure, marketing, customer service, and e-commerce strategies, each aspect plays a critical role in establishing and growing a small enterprise. This paper aims to analyze and elaborate on these core components, providing insights rooted in the principles represented by the provided questions and current best practices in small business management.

The location of a start-up business is particularly critical for certain types such as retail, service, or computer-based services. For retail businesses, a strategic location can significantly influence customer accessibility and foot traffic, often determining the viability of the enterprise. Retail and service businesses rely heavily on walk-in customers, whereas manufacturing might prioritize proximity to suppliers or logistics hubs. Similarly, computer-based services may prioritize proximity to technology clusters or internet infrastructure but are often more flexible regarding physical location, contingent on digital connectivity.

Ownership structures dramatically impact liability, taxation, and management flexibility. The limited liability company (LLC) is often compared to an S-corporation because both offer pass-through taxation and limited liability protections. The LLC is particularly popular due to its ease of formation, flexibility in management, and fewer regulations, making it an attractive choice for entrepreneurs. It is also a preferred vehicle for converting from sole proprietorships or partnerships, especially when avoiding double taxation or protecting personal assets.

Franchise control mechanisms are typically stringent, primarily regarding retail pricing, hours of operation, and product or service offerings. Franchisers impose these controls to maintain brand consistency and quality standards across locations. While franchisees often have some operational leeway, the franchise model emphasizes uniformity to uphold the franchise's reputation, which is why sales policies and pricing guidelines are tightly regulated.

Buying a business entails several strategic steps, including analyzing personal skills, exploring financing options, and investigating potential acquisitions. A thorough due diligence process is crucial to ensure that the target business aligns with the buyer’s capabilities and strategic goals. In valuation, the discounted future earnings approach involves estimating the company's future net income over several years and discounting these figures to present value, providing a realistic measure of the business’s worth based on anticipated profitability.

Investor confidence can be influenced by the quality of the business plan. Entrepreneurs unable to develop compelling plans may be perceived as lacking discipline or thoroughness, which can diminish their credibility. Thus, a well-crafted plan demonstrates strategic thinking, understanding of market dynamics, and operational preparedness—attributes valued by potential investors.

In marketing, defining the target market and understanding its characteristics are fundamental. This process informs the marketing strategy section of the business plan, where businesses outline their approach to reaching and serving specific customer segments. Distribution strategies are also critical; they detail how products will reach customers and often feature in the marketing or business strategy sections.

The success factors of a business—such as quality standards, pricing competitiveness, and customer service—should be central in the business plan. The market analysis section assesses these key success factors and competitor strengths, helping business owners identify points of differentiation. Effective customer service programs involve staff training to promptly address issues, fostering customer loyalty and positive word-of-mouth.

Marketing expenditures tend to be highest during product introduction and maturity stages, where awareness and customer retention efforts are intensified. The choice of advertising media relies on the target demographic and budget constraints; for example, radio remains a popular medium because of its broad reach and cost-effectiveness. Price setting should be customer-oriented, flexible within a range that reflects perceived value and competitive positioning. Price fixing practices, like those attempted by ABC in the hardware example, can violate antitrust laws such as the Sherman Antitrust Act, emphasizing the importance of adhering to legal standards.

Finally, e-commerce strategies share common goals with traditional businesses—such as increasing sales, improving efficiency, and boosting profits. However, digital platforms also offer unique advantages, including 24/7 availability, expanded reach, and data-driven marketing. These strategies must align with overall business objectives and leverage technology to enhance competitiveness.

In conclusion, effective small business management requires a comprehensive understanding of multiple interrelated areas. From choosing the right location and legal structure to crafting a strategic marketing plan, delivering excellent customer service, setting appropriate prices, and utilizing e-commerce opportunities, entrepreneurs must approach each element with strategic intent. Integrating these components enhances the potential for sustained growth and competitive advantage in the dynamic landscape of small business entrepreneurship.

References

• Scarborough, N. M., Wilson, D. L., & Zimmerer, T. W. (2009). Effective Small Business Management: An Entrepreneurial Approach (9th ed.). Pearson.
• Lussier, R. N., & Kimball, D. C. (2010). Entrepreneurial Small Business. Cengage Learning.
• Hisrich, R. D., Peters, M. P., & Shepherd, D. A. (2017). Entrepreneurship. McGraw-Hill Education.
• Baumol, W. J., & Blinder, A. S. (2015). Economics: Principles and Policy. Cengage Learning.
• Brush, C. G., & Cooper, S. Y. (2012). Small Business and Entrepreneurship: An Active Learning Approach. Journal of Small Business Management, 50(3), 330-342.
• Crane, F., & Mathews, H. (2011). Strategic Marketing Planning. Journal of Business & Economics Research, 9(2), 87-94.
• Kotler, P., & Keller, K. L. (2016). Marketing Management. Pearson.
• Wirtz, B. W., & Pistoia, A. (2017). Business Model Innovation Strategy. Springer.
• Laudon, K. C., & Traver, C. G. (2021). E-commerce: Business, Technology, Society. Pearson.
• U.S. Federal Trade Commission. (2020). Antitrust Laws and Practices. https://www.ftc.gov