Term
| What are the Advantages and DisAdvantages of equity capital and debt capital. |
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Definition
Equity financing represents the personal investement of the owner (or owners), and it offers the advantage of not having to be repaid with interest.
Debt Capital is the financing that a small business owner has borrowed and must repay with interest. It does not require entrepreneurs to give up ownership in their companies. |
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Term
| Describe the process of "going public," as well as its advantages and disadvantages and the various simplified registrations and exemptions from registation available to small businesses wanting to sell securities to investors. |
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Definition
Going public involves (1) choosing the underwriter, (2) negotiating a letter of intent, (3) preparing the registation statement, (4) filing with the SEC, and (5) meeting state requirements.
Going public offers the advantages of raising large amounts of capital, improved access to the future finanacing, improved corporate image, and gaining listing on a stock excange. The disadvantages include dilution of the founder's ownership, loss of privacy, reporting to the SEC, filing expenses, and accountability to the shareholders. |
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Term
| Explain the stages in the location decision:choosing the region, the state, the city and the final site. |
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Definition
| the location decision is one of the most important decisions an entrepreneur will make, given its long-term effects on the company. An entrepreneur should look at the coice as a series of increasingly narrow decisions: Which region of the country? Which State? Which City? Which Site? Choosing the right location requires an entreprenuer to evaluate potential site with her target customers in mind. |
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Term
| Describe the location criteria for retail and service businesses. |
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Definition
| For retailers, the location decision is especially crucial. Retailers must consider the size of the trade area, the volume of customer traffic, number of parking spots,availability of troom for expansion, and the visibility of a site. |
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Term
| Outline the basic location options for retail and service businesses. |
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Definition
| Retail and service businesses have six basic location options: central business districts (CBD'S), neighborhoods, shopping centers and malls, near competitors, outlying areas, and at home. |
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Term
| Evaluate the advantages nd disadvantages of building, buying, and leasing a building. |
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Definition
| Building a new building gives an entrepreneur the opportunity to design exactly what he wants in a brand-new facility;however, not every small business owner can afford to tie up significant amounts of cash in fixed assets. Buying an existing building gives a business owner the freedom to renovate as needed, but this can be an expensive alternative. Leasing a location is a common chice because it is econiomical, but the business owner faces the uncertainty of lease renewals, rising rents, and renovation problems. |
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Term
| Give me one sentence of what your business is. |
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Definition
| My business is one that offers seniors personal assistance to make everyday live convenient. |
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Term
| Explain the site selection process for manufacturers. |
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Definition
A manufacturer's location decision is strongly influenced by local zoning ordinances.
A foreign trade zone is a specially designated area in or near a U.S. customs port of entry that allows resident companies to do business with foreign companies. |
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Term
| Describe the criteria used to analyze the layout and design considerations of a building, including the Americans with Disablities Act. |
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Definition
When evaluating the suitablity of a particular building, an entrepreneuer shoudl consider several factors:
Size
Construction & External Apperance
Entrances
Legal Issues
Signs
Interior
Lights & Fixtures |
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