Reference no: EM132878781

1.Counting Earnings before They Hatch

You recently ran into one of your former high school teachers. You were surprised to learn that he'd left teaching, gone back to school, and, a little more than a year ago, started a business that creates Web sites for small companies. It so happens that he needs a loan to expand his business, and the bank wants financial statements. When he found out that you were studying accounting, he asked whether you'd look over a set of statements that he'd just prepared for his first year in business. Because you're anxious to show off your accounting aptitude, you agreed.
First, he showed you his income statement. It looked fine: revenues (from designing Web sites) were $94,000, expenses were $86,000, and net income was $8,000. When you observed how unusual it was that he'd earned a profit in his first year, he seemed a little uneasy.
"Well," he confessed, "I fudged a little when I prepared the statements. Otherwise, I'd never get the loan."
He admitted that $10,000 of the fees shown on the income statement was for work he'd recently started doing for a client (who happened to be in big trouble with the IRS). "It isn't like I won't be earning the money," he explained. "I'm just counting it a little early. It was easy to do. I just added $10,000 to my revenues and recorded an accounts receivable for the same amount."
You quickly did the math: without the $10,000 payment for the client in question, his profit of $8,000 would become a loss of $2,000 (revenues of $84,000 less expenses of $86,000).
As your former teacher turned to get his balance sheet, you realized that, as his accountant, you had to decide what you'd advise him to do. The decision is troublesome because you agree that if he changes the income statement to reflect the real situation, he won't get the bank loan.
1. What did you decide to do, and why?
2. Assuming that he doesn't change the income statement, will his balance sheet be incorrect? How about his statement of cash flows? What will happen to next year's income: will it be higher or lower than it should be?
3. What would happen to your former teacher if he gave the bank the fraudulent financial statements and the bank discovered the truth? How could the bank learn the truth?

2.Locate a news article regarding the transition of a small business -- the retirement of an owner, sale of a small business, or a business that closed. Did it appear that there was a clearly defined exit strategy? What was done well? What could have been improved? Share a link to the article you found.

3.Discuss at least four (4) options for financing a new small business. What are the pros and cons of each? For what type of business would each option be best suited? Include sources and citations where appropriate and a reference list at the end of your essay. include an introductory paragraph and a conclusion (see The Necessity for a Business Plan)

4. Share a positive or negative customer experience that you have had with a small business or a local franchise of a larger business. Apply what you learned from Lesson 5 and Chapter 2 to your experience. If you were a consultant for that business, what would you report that they did well? How could they improve?

5. Review Lesson 5 and Chapter 10: Product Design and Development of Exploring Business . as part of well written essay (400-500 words), address the product development categories noted in the Exercise below. Adhere to APA 7th ed. formatting and include sources and citations where appropriate as well as a reference list at the end of your essay.
Detailed Analysis - Exercise from 10.1 What is a Product in your textbook Exploring Business
Identify a good or a service for each of the following product development categories: new-to-the-market, new-to-the-company, improvement of existing product, and extension of product line. To come up with the products, you might visit a grocery store or a mall (or think about products you use). Don't use the Just Born examples presented in the chapter.
Instructions:
• Include an introductory paragraph and a conclusion.
• Follow APA format for structure. An APA template is attached here. Support your essay with 3 credible, academic references beyond the course materials. Please note Wikipedia, Investopedia and similar general websites are not credible academic references.

6. a variety of Leadership Styles are reviewed (see excerpt below). Review these styles and identify which one you feel you would like to embody as the owner/manager of a small business. Why do you think this would be work best for you? What are the pros and cons of this style?

7. Effective entrepreneurial leaders can motivate and inspire. They can create a community from a disparate group of strangers. Success of the venture depends largely on whether leadership can develop a vision and convince internal stakeholders to adhere to this vision. Employee buy-in is necessary and effective entrepreneurial managers can develop this by making sure every employee has a clear understanding of their role in the business. The effect entrepreneurial leadership has on their employees can be significant, especially for a small business. Effective leaders know this and employ various managerial styles to achieve the best effect on personnel. The following six leadership styles were determined by a study of over 4,000 managers (Murray 2010).
• Visionary leaders motivate employees to work for a vision.
• Coaching leaders foster a relationship with employees based on trust.
• Affiliative leaders create harmony within the organization based on emotional bonds.
• Democratic leaders develop buy-in through participation.
• Pacesetting leaders set challenging goals and expect excellence.
• Commanding leaders demand immediate compliance.
Murray, Alan. The Wall Street Journal Essential Guide to Management: Lasting Lessons from the Best Leadership Minds of Our Time. New York: Harper Business, 2010.

8. Discuss four types of business insurance and why they are important. Which type(s) would you find most necessary for a business you might want to own someday? Include sources and citations, and a reference list at the end of your essay. Adhere to APA 7th ed. formatting. Include an introductory paragraph and a conclusion. Follow APA format for structure. An APA template is attached here. Support your essay with 3 credible, academic references beyond the course materials. Please note Wikipedia, Investopedia and similar general websites are not credible academic references.

9. Review the marketing efforts of a small business with which you are familiar. What are they doing well? How could they improve? Share some specific suggestions. If they business has a website, share a link.

Attachment:- Counting Earnings.rar