Business Essentials

Answer the following questions:
Chapter 3:
1) Application Exercise: 3-10, page 100.
Chapter 4:
1) Questions for review, 4-1 to 4-8, page 131
Task 1. Chapter 3
Questions for Review
3-1. Why are small businesses important to the U.S. economy?
3-2. Which industries are easiest for a small business to enter? Which are hardest? Why?
3-3. What are the primary reasons for new business failure and success?
3-4. What are the basic forms of noncorporate business ownership? What are the key advantages and disadvantages of each?
3-5. After considering the characteristics of entrepreneurs, do you think that you would be a good candidate to start your own business? Why or why not?
3-6. If you were going to open a new business, what type would it be? Why?
3-7. Would you prefer to buy an existing business or start from scratch? Why?
3-8. Why might a closely held corporation choose to remain private? Why might it choose to be publicly traded?
3-9. Interview the owner/manager of a sole proprietorship or a general partnership. What characteristics of that business form led the owner to choose it? Does he or she ever contemplate changing the form of the business?
3-10. Although more than half of all small businesses don’t survive five years, franchises have a much better track record. However, it can be difficult to buy a franchise. Research a popular food industry franchise, such as Panera Bread, Sonic, California Tortilla, or Subway, and detail the requirements for net worth and liquid cash for the franchisee as well as up-front and annual fees.

Task 2. Chapter 4
4-1. What are the advantages and disadvantages of globalization?
4-2. What are the three possible levels of involvement in international business? Give examples of each.
4-3. What are the elements of national competitive advantage? Give a current, condition.
4-4. Describe the five international organizational structures.
4-5. Make a list of five things you own, such as an item of furniture, a vehicle, electronics, and other consumer goods, making sure that each one was made in a different country. Develop a hypothesis about why each product was made in that particular country.
4-6. Describe the United States in terms of the five cultural orientations.
4-7 Research and identify a protectionist tariff imposed by the United States. Do you support that tariff? If so, why?
4-8. Do you think that a firm operating internationally is better advised to adopt a single standard of ethical conduct or to adapt to local conditions? What are the advantages and disadvantages of adapting to local conditions?