Assignment:
Small business management class:
Please answer for the questions below as soon as possible please please.
1) Denise received a modest inheritance from a great aunt and wants to use it to buy a small business. Denise settled on a nail salon in her town. She is ready to perform due diligence. The current owners of the nail salon have provided her with a set of their financial statements including the balance sheet, the income statement, and the statement of cash flows. In addition they gave her copies of the business tax returns. It's been a while since Denise took accounting and she needs your help to answer the questions listed below. For each of the questions listed below, which one of the sources of information provided by the current nail salon owners should Denise use to find the correct answers?
a. What are the tax rates for this business?
b. How much money does the shop bring in?
c. Does the company have a positive cash flow?
d. How much is the equipment in the salon worth?
e. Will I be taking on much long-term debt?
f. How much is depreciation?
g. How much has been spent in advertising?
2) Which one of the five paths to business ownership best matches each one of the small business situations listed below?
a. Elva just opened a Subway Sandwich Shop.
b. Tahir was hired to run Alligator Music.
c. Doug took over Klingman Painting when his father finally retired.
d. Betty is proud of the barbershop she founded.
e. Victor doesn't want to think of how he scraped up the money, but he is now the new owner of a locksmith service.
3) Which one of the four methods for purchasing an existing business applies to each of the business situations listed below?
a. Dean is buying Hess Construction, a sole proprietorship.
b. Sheri has purchased all the stock belonging to Nomi the current owner.
c. Bernell has acquired 75% ownership of Alcatraz Mini-Storage
d. Rudy is a raider and has purchased a controlling interest in Alltech Research and Development without the permission of the management.
4) For each of the business situations listed below, identify whether it is an example of parallel competition, incremental innovation or pure innovation.
a. Bobbie is starting a ski-diving center to serve the greater Valparaiso, Indiana area.
b. George hand carves bookends from bricks
c. Hester is franchising her coffee shop idea.
d. Lillian has found a way to make bread from recycled plastics
5) Which of the Value and Cost Benefits are best illustrated by each of the small business situations listed below?. (Hint: there are no more than two benefits per business situation.)
a. Alma knows the name of every one of her customers and uses it immediately when they walk into her accounting office.
b. Michael's painting company has established an excellent reputation in the Upland, California area and since he operates from his home, his costs are low.
c. Alco's Discount Store purchases products by the truckload so as to pass along savings to its customers and is conveniently located next to the grocery store.
d. Ardell's Appliances delivers and install each appliance within 24 hours and guarantees them for a full year beyond the manufacturer's warranty.
e. Now that Don has made several dozen bookcases, he has figured out the most effective and efficient way of building them but yet maintaining the artistry and quality of each piece.
f. JoAnn's website allows customers to order craft supplies from a large number of companies and pay by credit card on their secure site.
g. Purchasing a membership in Elmer's Environmentalists not only means you can spend time with other environmentally conscious people, but you know that a portion of your membership dues goes towards cleaning up beaches around the country.
6) there are times when small business opportunities arise unexpectedly and lead to one of the seven entry wedges. Which one of the entry wedges listed in the chapter best fits each one of the small business situations listed below?
a. Angelina Alvarez uses the fact that her tree and shrub removal service is both woman and minority-owned to qualify for set asides.
b. Gary makes an innovative device that converts your cell phone into a GPS device. Everybody wants one, but there are no competitors yet.
c. Pam's aunt ran a mail order business. She'd always wanted to have a stamp collection so she saved the stamps off of virtually every piece of mail she received. Pam discovered the cartons of stamps in her aunt's attic and persuaded her to let her sell them on eBay.
d. The state government gave preferential treatment to Gary's construction company when it recently remodeled one of its office buildings since Gary's firm had a record of hiring disabled workers.
e. When Dominos decided to no longer deliver pizzas outside the city limits, Judy's Pizza Palace picked up a lot of the rural business.
f. When Orville left his company, he was able to persuade his former employer to sign a contract allowing his new drafting firm to do its entire blueprint work.