Business Essentials (12th Edition) (What's New in Intro to Business)
12th Edition
ISBN: 9780134728391
Author: Ronald J. Ebert, Ricky W. Griffin
Publisher: PEARSON
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Question
Chapter 3, Problem 3.12A
Summary Introduction
To determine: Whether it makes more sense to start from scratch or to buy an existing business.
Introduction:
A business is an economic system whether the goods or services are exchanged for money. Production, buying of raw materials and selling of finished goods are the works related to the business. Business is the thing which improves the people’s standard of living.
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Students have asked these similar questions
Pick a business that you know of (can be a small business in your neighborhood or a large corporation that makes a product you bought in the past), do a little research about it, and answer the following:
Describe the goods or services the business sells and where it does business.
What kind of model is this company using? (remember, a company could use more than one model; use the models described in the introduction above).
What type of business is this (sole proprietorship, partnership, or corporation)?
How did you find out? Describe how you researched information about this company.
1. If someone buys a business but hires professional managers to run it so they don’t have to be involved in the operations, are they an entrepreneur?
2. Is someone an entrepreneur if they buy into a franchise so they can follow a well-established formula for running the operation?
3. Is someone an entrepreneur because of what they do or because of how they think?
The following are the fundamental questions to consider when starting a business EXCEPT:
Do you have a viable concept?
Is the reason you want to start a business consistent with your character and
concept?
Do you know how to run a business?
Do you have what it takes?
3
Chapter 3 Solutions
Business Essentials (12th Edition) (What's New in Intro to Business)
Ch. 3 - Prob. 3.1QRCh. 3 - Prob. 3.2QRCh. 3 - Prob. 3.3QRCh. 3 - Prob. 3.4QRCh. 3 - Prob. 3.5QACh. 3 - Prob. 3.6QACh. 3 - Prob. 3.7QACh. 3 - Prob. 3.8QACh. 3 - Prob. 3.9AECh. 3 - Prob. 3.10AE
Ch. 3 - Prob. 3.11ACh. 3 - Prob. 3.12ACh. 3 - Prob. 3.13ACh. 3 - Prob. 3.14ACh. 3 - Prob. 3.15ACh. 3 - Prob. 3.16TECh. 3 - Prob. 3.17TECh. 3 - Prob. 3.18TECh. 3 - Prob. 3.19EECh. 3 - Prob. 3.20EECh. 3 - Prob. 3.21EECh. 3 - Prob. 3.22CCh. 3 - Prob. 3.23CCh. 3 - Prob. 3.24CCh. 3 - Prob. 3.25CCh. 3 - Prob. 3.26CCh. 3 - Prob. 3.27CCh. 3 - Prob. 3.28CCh. 3 - Prob. 3.29CCh. 3 - Prob. 3.30C
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Similar questions
- Identify what you think is a very successful firm and explain why. How did it become successful?arrow_forwardselect a franchise that interests you. Once you have looked at the information provided, please prepare and submit a written report that covers the following: Name of franchise you selected and a brief summary of the business opportunity. Why you selected the franchise you did. What was it about this particular franchise that attracted you to it? Start-up costs. Specify what the owner (“franchisee”) will have to invest, as well as any contributions toward start-up that the franchisor will make. Potential profit or income from the business. Support that the franchisor will provide the owner (“franchisee”), such as training, supplies, materials/equipment, location, building.arrow_forwardDo you think an entrepreneurial venture could run without defining the specific customer of the product? Why or why not?arrow_forward
- You have just graduated from the MBA program of a large university, and one of your favorite courses was “Today’s Entrepreneurs.” In fact, you enjoyed it so much you have decided you want to “be your own boss.” While you were in the master’s program, your grandfather died and left you $1 million to do with as you please. You are not an inventor, and you do not have a trade skill that you can market; however, you have decided that you would like to purchase at least one established franchise in the fast-food area, maybe two(if profitable). The problem is that you have never been one to stay with any project for too long, so you figure that your time frame is 3 years. After 3 years you will go on tosomething else. You have narrowed your selection down to two choices: (1) Franchise L, Lisa’s Soups, Salads, & Stuff, and (2) Franchise S, Sam’s Fabulous Fried Chicken. The net cash flows shown below include the price you would receive for selling the franchise in Year 3 and the forecast…arrow_forwardLarger or established businesses tend to leave gaps in the market for numerous reasons. Once these gaps (however small) are left open, it makes it very easy for smaller ventures to spot the opportunity and make the most of it. Spinelli and Adams (2016) state that a good opportunity may sometimes not look too attractive at first but has the potential to blossom into one that is bigger than the venture itself, even after the venture has grown to a substantial size.In light of the abstract discuss and explain those gaps that business tend to leave in the marketplace, provide the possible reasons for these businesses to leave the gaps.arrow_forwardWhy is it important to write a simple or comprehensive business plan before starting up a business?arrow_forward
- What are the benefits of purchasing a company rather than starting one from the ground up?arrow_forwardBeing a franchisee is an opportunity for those who lack business experience, the chance to own and operate a profitable business. What is your understanding of this statement?arrow_forwardStarting up and managing a business requires one to act responsibly and ethically at all times. It is also imperative that one carefully considers the management team and the opportunities that franchising presents to a business to create a bigger brand name and increased market share You may consider franchising your business at some point. Discuss with justification, the type and model of franchise that your business will enter into.arrow_forward
- "Buying an existing business increases the certainly of successful operation by the new owner". Do you agree?arrow_forwardHow does the SaaS business model work? Could you just clarify yourself?arrow_forwardWould you prefer to start and organize an entirely new business than buy an existing firm? Discussarrow_forward
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