Entrepreneurship and family Business Essay

Submitted By hoon
Words: 1874
Pages: 8

Test 1
1. Example of small business poor ethics
Cheating on taxes, price fixing, overcharging customers, using pirated software in the business, a host of others,
Income and expense reporting(tax fraud), truth in advertising – persuasion and deception, bribing customers and rigging bids, direct selling – pyramid schemes, bait-and-switch selling, effects of owners’ ethics on their employees, accurately reporting financial information.
To do an honest day’s work, fraudulent workers compensations claims, theft of company property and embezzlement of funds, violation of personal ethics to make a sale
2. Small business owner code of ethics should contain
Code of ethics: official standards of employee behavior formulated by a business owner.
By defining behavioral expectations
By communicating that those expectations apply to employees at all levels in the business.
By helping employees convey the company’s standards of conduct to suppliers and customers
By serving as a tool for handling peer pressure
By providing a formal channel for communicating with superiors without fear of reprisal
Purpose, pride, patience, persistence, perspective
3. Define bait and switch
Bait and switch is a form of fraud used in retail sales but also employed in other contexts. First, customers are “baited” by merchants’ advertising products or services at a low price, but when customers visit the store, they discover that the advertised goods are not available, or the customers are pressured by sales people to consider similar, but higher priced items “switching”.
4. Social responsibility can only kick in after what
Social responsibilities: a company’s ethical obligations to the community.
Their contribution starts with creating job and adding to local tax revenues, but many entrepreneurs feel a duty to give back even more to the community in return for the local support they enjoy.
5. Ethical standards are affected by what

6. Small business ownership opportunities include
Motivations to start a business To develop a commercial market for new product or service To tap into unique resources that are available Wanting the challenge of succeeding (or failing) on your own To avoid undesirable features of existing companies
7. Types of ideas
Type A ideas: new market – startup ideas centered around providing customers with an existing product or service not available in their market
Type B ideas: new technology – startup ideas involving new or relatively new technology, centered around providing customers with a new product
Type C ideas: new benefit – startup ideas centered around providing customers with new or improved products or services
8. What can protect competitive advantage
Entrepreneurs should take one more step when analyzing the competition
Entrepreneurs keep coming up with innovative ways of doing things and often overtake established rivals by using their commitment to time-honored approaches against them
They establish core competencies by using resources and capabilities in unique ways that reflect the “personality” of their own enterprises. Entrepreneurs who can identify core competencies and apply them effectively are in the best position to launch ventures that will achieve a competitive advantage and superior performance.
9. Define SWOT
An assessment that provides a concise overview of a firm’s strategic situation
Inside the company – strengths and weaknesses
Outside the company – opportunities and threats
10. What reduce a focus strategy
The focus strategy is imitated
The target segment becomes structurally unattractive because the structure erodes or because demand simply disappears
The target segment’s differences from other segments narrow
New firms subsegment the industry
11. Advantages/disadvantages of franchising
Probability of success – proven line of business, pre-qualification of franchisee
Training support – franchisor-provided
Financial assistance