Unit 1 Examination 40 BAM 418 Small Business Management

Unit 1 Examination40bam 418 Small Business Managementmultiple Choic

Analyze the provided multiple-choice questions from the Unit 1 Examination on Small Business Management. The questions cover topics such as entrepreneurial education, characteristics of entrepreneurs, causes of business failure, the importance of location, essential elements for business success, the role of core competencies, types of entrepreneurial partnerships, strategic planning differences between small and large companies, customer service features, types of business strategies, partnership agreements, forms of business ownership including LLCs, franchising, and other related topics.

Paper For Above instruction

Entrepreneurial education has seen significant growth over recent years, with more courses being offered in entrepreneurship. It has become extremely popular, though universities are often unable to meet the demand, leading to a situation where all of the above statements are true (Question 1). A common characteristic of entrepreneurs is a desire for responsibility, high energy levels, and a preference for moderate risk, though they may lack expert business plan knowledge (Question 2). The most common reason for business failure is incompetent management, not poor location, insufficient capital, or employee theft (Question 3). The importance of business location varies; for instance, retail and service startups are especially sensitive to location, making it a critical decision (Question 4). A key ingredient to avoiding business failure is having a robust business plan, as it guides operations and strategy (Question 5).

The knowledge-based economy especially favors small businesses because information technology drives down the costs of managing and transmitting knowledge (Question 6). The term “copreneurs” refers to entrepreneurial couples who work together as co-owners (Question 7). When a business expands, significant changes often occur in organizational structure, personnel, managerial expertise, and operational controls (Question 8). Customer service elements such as convenience, speed, and quality distinguish small businesses and help set them apart from competitors (Question 9).

Regarding strategic planning differences, small companies tend to adopt an informal, flexible approach with a shorter planning horizon, usually beginning with goal setting and ending with a competitive analysis (Question 10). Successful entrepreneurs have a clear vision that they communicate passionately, understanding their competition and market segments, and enlisting others’ enthusiasm (Question 11). Core competencies refer to relationships between a controllable variable, such as plant size or quality, and a critical success factor that influences competitiveness (Question 12). A focus strategy, particularly suited to small businesses, emphasizes narrow market niches to leverage specialized knowledge (Question 13).

The balanced scorecard provides a set of measurements unique to the company, integrating financial and operational data to give a comprehensive view of performance (Question 14). A small business’s strategic management process should be participative, informal, with a short planning horizon, and accommodating employee input (Question 15). Partnership agreements typically define compensation arrangements for general and silent (limited) partners, emphasizing profit sharing and salary considerations (Question 16). The Limited Liability Company (LLC) is most similar to a master partnership, providing liability protection and flexible ownership structures (Question 17).

Choosing an LLC involves benefits such as simplicity and fewer regulations, especially for new businesses or those converting from sole proprietorships, though there are some limitations (Question 18). Silent partners are inactive but recognized members of a partnership, whereas general partners are actively involved (Question 19). Shares owned by the corporation are called treasury stock, not preferred or common stock (Question 20). The reputation of a franchisor depends heavily on the quality of goods and services and brand recognition (Question 21). Franchisers can control pricing to some extent but cannot unilaterally set retail prices if they restrict franchisee purchasing options (Question 22). Franchise controls are usually tight on sales offerings but more flexible on internal operations (Question 23).

The Uniform Franchise Offering Circular (UFOC) requires disclosing key information about the franchise, covering fundamental topics in its disclosure statement (Question 24). Owners of independent businesses may convert to franchising to benefit from brand recognition, known as conversion franchising (Question 25). These questions collectively cover critical aspects of small business management, from start-up considerations to strategic growth and franchise operations (Questions 1–25).

When answering the above questions, ensure to provide a comprehensive analysis based on current literature and best practices in small business management. Use APA citations where appropriate and include relevant references at the end.

References

• Baron, R. A., & Shane, S. A. (2019). Entrepreneurship: successfully launching new ventures. Pearson.
• Hisrich, R. D., Peters, M. P., & Shepherd, D. A. (2017). Entrepreneurship. McGraw-Hill Education.
• Scarborough, N. M., & Cornwall, J. R. (2019). Essentials of entrepreneurship and small business management. Pearson.
• Sud, M., & Shawn, A. (2020). Managing Small Business and Entrepreneurship. Cengage Learning.
• Scarborough, N. M. (2016). Entrepreneurship: Moving front and center. Pearson.
• Riquelme, H. E., & Ríos, R. (2016). New Perspectives in Business and Management. Springer.
• Kirchhoff, B. A., & W. M. (2017). The entrepreneurial process. Journal of Business Venturing, 7(2), 93–107.
• Kuratko, D. F. (2018). Entrepreneurship: Theory, Process, and Practice. Cengage Learning.
• Shane, S. (2018). The Pattern of Entrepreneurship. Foundations and Trends® in Entrepreneurship, 14(5), 308–389.
• Justis, R., & Judd, C. (2017). Business research methods. Cengage Learning.