TRI3_2019/2020

BFB1024- FUNDAMENTALS OF BUSINESS ENTREPRENEURSHIP

TUTORIAL CHAPTER 1

1. What is an entrepreneur? Give a brief description of the entrepreneurial profile.

2. Inc. magazine claims, “Entrepreneurship is more mundane than it’s sometimes portrayed
... you don’t need to be a person of mythical proportions to be very, very successful in
building a company.” Do you agree? Explain.

3. What are the limitations of owning a small business enterprise?

4. What are the advantages of owning a small business enterprise?

5. One entrepreneur says that too many people “don’t see that by spending their lives afraid
of failure, they become failures. But when you go out there and risk as I have, you’ll have
failures along the way, but eventually the result is great success if you are willing to keep
risking . . . For every big “yes” in life, there will be 199 ‘nos.’” Do you agree? Explain.

6. What advice would you offer an entrepreneurial friend who has just suffered a business
failure?

7. How can the small business owner avoid the common pitfalls that often lead to business
failures?

TUTORIAL CHAPTER 3

1. Identify six enablers of small business innovation.

2. What are the ingredients of creativity?

3. How does the human brain function? What operations does each hemisphere specialize
in? Which hemisphere is the ‘seat’ of creativity?

4. Briefly outline the 10 ‘mental locks’ that can limit individual creativity. Give an example of a
situation in which you subjected yourself to one of these mental locks.

5. What can entrepreneur do to stimulate their own creativity and to encourage it among
workers?

6. Your dinner guests are about to arrive in five minutes, and you’ve just discovered that you
forgot to chill the wine! (You may change the situation too). Wanting to maintain your
reputation as the perfect host/hostess, you must tackle this problem with maximum
creativity. What could you do? Generate as many solutions as you can in five minutes
working alone. Then work with two or three students in a small group to brainstorm the
problem.

SS 1
TRI3_2019/2020 BFB1024- FUNDAMENTALS OF BUSINESS ENTREPRENEURSHIP

TUTORIAL CHAPTER 5

1. What factors should an entrepreneur consider before choosing a form of ownership?

2. Why are sole proprietorships the most popular form of ownership? Describe the
advantages and disadvantages of the sole proprietorship.
Advantages of the Sole Proprietorship

3. What are the contents of a standard partnership agreement?

4. Explain the differences between a domestic corporation, a foreign corporation, and an

5. What role do limited partners play in a partnership? What will happen if a limited partner
takes an active role in managing the business

6. What are the advantages to organizing as a non-profit for a social entrepreneur? What
are the critical steps a social entrepreneur must take to launch a non-profit?

7. How can a for-profit pursue a social mission? What is meant by a ‘double bottom line’ for
such an organization?

TUTORIAL CHAPTER 8

1. What does a feasibility analysis encompass and what value might it provide? Provide
three (3) interrelated components of feasibility analysis.

2. How can an entrepreneur seeking funds to launch a business convince potential lenders
and investors that a market for the product or service really does exist?

3. Why should an entrepreneur develop a business plan?

4. Describe the major components of a business plan.

5. What are the five Cs of credit? How do lenders and investors use them when evaluating a
request for financing?

6. How would you prepare to make a formal presentation of your business plan to a venture
capital forum

SS 2
TRI3_2019/2020 BFB1024- FUNDAMENTALS OF BUSINESS ENTREPRENEURSHIP

TUTORIAL CHAPTER 9

1. How can market research benefit a small business owner? List the possible sources of
market information.

2. Explain how to determine customer needs through market research.

3. What is a competitive edge? How might a small company gain a competitive edge?

4. Explain the concept of the marketing mix. What are the four Ps? How can an entrepreneur
use bootstrapping in the marketing mix?

5. What objectives should a marketing plan accomplish?

6. Why is it important for entrepreneurs to define their target markets as part of their
marketing strategies?

7. What is a competitive edge? How might a small company gain a competitive edge?

TUTORIAL CHAPTER 10

1. What are the three elements of promotions? How do they support one another?

2. What factors should an entrepreneur consider when selecting advertising media?

3. What is a unique selling proposition (USP)? What role should it play in a company’s
advertising strategy?

4 . Summarizes the advantages and disadvantages of the following advertising media:

5. One writer describes the USP of a company from which she received an email:
“Combining the strategy, business processes, implementation, and technical support
skills of a CRM systems integrator with the data management, analytic, and marketing
skills of a database marketing serviced provider to deliver and operate a close-looped
marketing and sales environment.” How do you rate the effectiveness of this USP?
Explain. What are the characteristics of an effective USP?

SS 3
TRI3_2019/2020 BFB1024- FUNDAMENTALS OF BUSINESS ENTREPRENEURSHIP

TUTORIAL CHAPTER 11

1. Explain why pricing is both an art and a science.

2. How does pricing affect a small firm’s image?

3. What competitive factors must the small firm consider when establishing prices?

4. Describe the strategies a small business could use in setting the price of a new product.
What objectives should the strategy seek to achieve?

5. What is follow-the-leader pricing? Why is it risky?

6. Explain the techniques for a small service firm setting an hourly price.

TUTORIAL CHAPTER 13

1. Explain the benefits a company earns by selling on the Web.

2. What are the road blocks that small companies might encounter in their endeavor to
embrace e-commerce?

3. Provide guidelines for building a successful Web strategy for a small e-company.

4. Describe the techniques that are available to e-companies for tracking results from their
Web sites. What advantages does each offer?

5. Discuss the various techniques of designing an attractive Web site.

SS 4
TRI3_2019/2020 BFB1024- FUNDAMENTALS OF BUSINESS ENTREPRENEURSHIP

TUTORIAL CHAPTER 14

1. What are the financial statements used to manage a business? Why are they important?

2. Describe the method for building a projected income statement and a projected balance
sheet for a beginning business.

3. Why are pro forma financial statements important to the financial planning process?

4. How can break-even analysis help an entrepreneur planning to launch a business? What
information does it give an entrepreneur?

TUTORIAL CHAPTER 15

1. Explain the difference between cash and profit.

2. Outline the steps involved in developing a cash budget.

3. Explain the Cash conversion cycle

4. Alan Ferguson, owner of Nupremis, Inc., a Web-based application provider, says, “We
lease our equipment and technology because our core business is deploying it, not owning
it.” What does he mean? Is leasing a wise cash management strategy for small
businesses? Explain.

TUTORIAL CHAPTER 16

1. Define equity financing. What advantage does it offer over debt financing?

2. What are the seven sources of funding that the founders can tap for their new business?

3. What are the advantages offered by starting a business in accelerator programs?

4. Summarize the major challenges of “going public” for a small business.

SS 5
TRI3_2019/2020 BFB1024- FUNDAMENTALS OF BUSINESS ENTREPRENEURSHIP

TUTORIAL CHAPTER 17

1. What role do commercial banks play in providing debt financing to small businesses?
Outline and briefly describe the major types of short-term, intermediate, and long-term
loans commercial banks offer.

2. Explain how asset-based financing works. What is the most common method of asset-
based financing? What are the advantages and disadvantages of using this method of
financing?

3. Explain how to avoid becoming a victim of a loan scam?

TUTORIAL CHAPTER 18

1. How do most small business owners choose a location? Is this wise?

2. Outline the factors entrepreneurs should consider when selecting a state in which to
locate a business.

3. What factors should a seafood-processing plant, a beauty shop, and an exclusive jewelry
store consider in choosing a location? List factors for each type of business.

4. What intangible factors might enter into the entrepreneur’s location decision?

5. Explain how a foreign trade zone works.

TUTORIAL CHAPTER 21

1. Explain the challenges involved in an entrepreneur’s role as a leader?

2. Explain the differences among job simplification, job enlargement, job rotation, and job
enrichment. What impact do these different job designs have on workers?

3. Is money the “best” motivator? How do pay-for-performance compensation systems work?

4. Suppose that a café and coffee shop that sells organic, mostly locally grown foods and fair
trade coffee identifies its performance as a socially responsible company as a “critical
number” in its success. Suggest some ways for the owner to measure this company’s “social
responsibility index.”

SS 6
TRI3_2019/2020 BFB1024- FUNDAMENTALS OF BUSINESS ENTREPRENEURSHIP

SS 7