1.

Team One
a. Akio Morita, Warren Buffet, or Richard Branson, self-made capitalists have always
been a tremendous inspiration to encourage individuals becomes entrepreneurs.
State the primary reasons that motivate individuals to start their own businesses.
i. Be your own boss
1. Unhappy with current job
2. Entrepreneur spirit
3. Unsatisfied with previous position
4. Getting higher profit while doing business in term of money

b. What are the main characteristics of successful entrepreneurs that drive their
business to the top?
i. Focus product and services
ii. Strive despite of failure
iii. Control your own destiny
iv. Work history
v. Entrepreneur mind set
vi. Managerial skill and experience

c. Describe the steps in entrepreneurial process

i. Opportunity identification: process which the entrepreneur comes up with the
opportunities for new venture.
ii. Market size& length: of windows opportunities are the primary bases for
determining risk and reward.
iii. Window opportunity: the time period available for entering the new venture
iv. Business plan: the description of the future direction of the business.

2. Team Two
a. Identify the FIVE (5) Porter’s competitive forces that will determine the
profitability of a business
 b. Briefly explain
i. Competitive intelligence
a. Get the competitors information such as advantages of their product. Find any information
about the competitors that can considered as thread to the company.
i. The process are
1. Defining
2. Gathering
3. Analyzing
ii. Competitive advantage
a. Its means that the advantages owned by company that can be used to overcome the
competitors.
i. offering consumers greater value, either by means of lower prices
ii. providing greater benefits and service that justifies higher prices
c. State the ways by which an entrepreneur can ethically obtain information about its
competitors
• Attend conference and trade shows.
• Read industry related book, magazines, and Web sites.
• Talk to customer about what motivated them to buy your product as opposed to
your competitors’.
• Purchase competitors’ products to understand their features, benefit and
shortcomings.
• Study competitors’ Web sites.
• Study Web sites that provide information about companies.
3. Team Three
a. Differentiate between:
i. Patent and copyright
Patens copyright
A patent protects an invention, process, A copyright is exclusive rights to a
device or method, which is deemed particular expression, idea, information or
useful and new. Weaponry and other original creation. The copyright symbol,
questionable inventions would be ©, appears next to the work to serve as
reviewed individually. This protection notice the work is under the protection of
prevents others from copying these the Copyright Office.
products

ii. Trade mark and trade secret

Trade mark
-is a word, symbol, design or some
combination of such or it could be a
slogan or even a particular sound that
identifies the sources or sponsorship of
certain goods or services.
-something that is publicly recognized
and known as being officially associated
with a particular company.
-Trademark registration must be
Trade secret
-is information, including a formula,
pattern, compilation, program, device,
method, technique, or process which need
preserved .
-Provides protection against others
revealing or disclosing information that
could be damaging to business.
-Trade secrets have a life as long as the
idea or process remains a secret.
 renewing in 10 year or as long as it is in -Trade Secret registration duration until
use. disclosed to the public.

b. State the
i. advantages and
• Patent holder has exclusive commercial rights to use and license the invention.
• Legal action can be taken against anyone who tries to use the invention without
the patent holders consent.
• The existence of the patent may be enough to deter would-be infringers.
• The patent can be sold.
• Reducing the number of competitors in the market.
• Revenue from licensing.
• Confidence for venture capitalists or other investors. Increase the value of the
company
ii. disadvantages of patent
• Patents apply to inventions and processes and cannot protect logos or concepts of
product.
• A full description of the invention is published and can be viewed by anyone
applying to the appropriate patent administration office.
• After the exclusive patent period other people or businesses can freely use the
invention without needing permission from or making a payment to the inventor.
• The cost of the patent may out-weigh the financial advantages of the invention.
• Inventors may choose to capitalize on inventions that could benefit the wider
public, such as a new low carbon emitting energy source, rather than allowing the
inventions to be used widely.
c. List the categories of materials that can be copyrighted
i. Literary works
ii. Musical works
iii. Artistic works
iv. Films
v. Sound recordings
vi. Broadcasts
vii. Derivative works

4. Team Four

a. Provide the various sources of equity capital available to a start-up company

• own money
• family and friends
• line of credit
• loan from bank
• government program
b. Business plans are developed with the objective of raising funds to finance new
ventures. Explain the difference between (309)
i. equity capital, and;
a. is money obtain from the small business owners themselves or from other investors.
b. Does not required collateral but offers to the investor some of the ownership position in
the venture.
c. Financing method involving an interest-bearing instrument, usually a loan,
the payment of which is only indirectly related to the sales and profits of the
venture.
ii. debt capital
a. Requires some asset (such as car, house machine or land) to be used as guarantee.
b. Need to pay back fund including the fee that been agreed by both parties.
c. Long-term debt usually used to by a piece of machinery, land or a building with part of
the value (50% to 80%) of the asset being used as collateral for the long term loan.
c. Compare the differences between
i. Fixed capital
ii. Working capital, and;
iii. Growth capital

FIXED WORKING GROWTH

-buy fixed assets like land -used to carry out day to -to generate revenue and
and building. day operations. operating profits but unable
-consists of land , building, -consists of cash, -to generate sufficient cash
tools, machines. marketable securities, to fund.
-includes long term accounts receivable, stock. -consist of restructure
financial decisions -includes short term operations, enter new
-mainly required for financing decisions. markets or finance
operational activities -required for trading -include a contractual return
activities. (i.e., interest payments).
-Required to finance a
transformational event in
their lifecycle.

d. State the various examples of bootstrapping methods

i. Use Personal Assets for Startup
ii. Save money on interest
iii. Valuable market experience

e. Provide the reasons why an entrepreneur seeks to use bootstrap financing instead of
acquiring outside capital
a) To reduce cost – if apply loan from bank, there are interest that need to be paid.
b) Avoid money interest- this money interest can disturb the company flow.
5. Team Five
a. Briefly explain Initial Public Offering (IPO)
i. Is a process through which a privately held company issues shares of stock to the
public for the fist time.aka going public
ii. Significant stage in the growth of small business in terms of flexibility &
management.
iii. Going is a complex decision that requires carefully consideration and planning.
iv. Suggested when
1. Stock markets are receptive to new offering
2. The industry growth rapidly
3. Company need aces to more capital n public recognition to support it strategies
for expansion n growth

b. State the reasons that motivate the firm to go public.

i. To invite investor
ii. To increase income
iii. Easy to attract customer
iv. To promote the product
c. Identify the advantages & disadvantages of going public
Advantages Disadvantages
1.acess to capital 1.cost&time involved
2.easier to obtain capital 2.IPO is extremely experience
3.increase public awareness 3. lost of confidentially, flexibility&
4.ability to raise large amount of control.
capital 4.Lost of privacy

6. Team Six
a. Specify the different types of franchise and give examples (s) of each
i. Dealership @ product distribution
1. Act as retail store for the manufacturer
2. To sell specific product under the franchaisor brand name & trademark through a
selective, limited distribution
ii. Services/trade name
1. Franchaise that offers a name, image & method of doing business. volvo
2. A franchaisee purchase the right to use the franchaisor trade name without
distributing particular product exclusively under the franchaisor name.starbuck
iii. Retail/business format franchaising
1. The franchaisor offers the franchaisee a clearly define package of deliverable and
services
2. A strong corperate identity including the use of trademark logo. A complete
system of conducting the business at optimal efficiency.
b. Illustrate the following foreign market entry strategies
i. Exporting: produce the product and export it to oversea.
ii. Licensing: an agreement the give a company to manufacture the other company
product for specified royalties or other payment.
iii. International Franchising: is a company that decides to go world wide.
 iv. Joint Venture: involved the establishment of a firm that is jointly owned by two
or more independent firms.
v. Strategic Alliances: formal relation between two or more parties to pursue a set
of agreed upon goals or to meet a critical business need while remaining as an
independent organization
vi. Mergers & acquisition: two companies combine together and become one.
Acquisition can be defined as a company buys the competitors company in order
to eliminate it as its competitors.

7. Team Seven
a. Illustrate the types of market development strategies. Support your answers with
relevant examples
1. Market development strategies
a. Selling the firm’s existing products to new groups of customers.
2. New Geographical Market
a. Selling the existing product in new locations.
3. New product use

b. State the primary reasons why new products or services fail

1. Marketers assess the marketing climate insufficiently.

2. The wrong group is targeted.
3. A weak positioning strategy is used.
4. A less-than-optimal "configuration" of product or service attributes and benefits is
selected.
5. A questionable pricing strategy is implemented.
6. The advertising campaign generates an insufficient level of new product/new service
awareness.
7. Cannibalization depresses corporate profits.
8. Over-optimism about the marketing plan leads to a forecast that cannot be sustained in
the real world.
9. The marketing plan for the new product or service is not well implemented in the real
world.
10. The marketer believes that the new product and its marketing plan has died and cannot
be revived, when, in fact there is the potential for resurrection.
c. Provide reasons why “going global” or internationalization has become an integral
part of many firms companies’ marketing strategies.
1. Economies of scale in production and distribution
2. Ability to leverage good ideas quickly and efficiently Uniformity of marketing
practices
3. Helps to encourage ancillary industries to be set up to cater for the needs of the global
player
4. Helps to establish relationships outside of the "political arena"
5. Lower marketing costs
6. Power and scope Consistency in brand image
8. Team Eight
a. Eng Busu has embarked on a business as scrap metal collector and used furniture
dealer. He wishes to determine the break-even point with estimated costs as follows:
a. Rental of premise RM2000 per month
b. Direct labor per unit RM6.00
c. Employees’ salaries and wages RM1000 per week
d. Raw materials RM2 per unit
Calculate the marginal contribution and the monthly break-even point

b. State the THREE (3) types of pro-forma financial statements and their importance
(purpose) in financial management
1. Income Statement
1. This statement contains projected sales revenue, discounts, returns, and
allowances relating to various goods or services sold by the company.
2. This document is based on the activity over a specific period of time, typically
one year.
3. Use to estimate the possible budget for the next year.
4. Usually business owners will look at the performance of the previous year and
compare it to the current time period to help determine what the following year
might have in store financially.
 2. Balance sheet statement
1. Financial document that discloses a business’s assets, liabilities, and equity at a
specific point in time.
2. Used in the financial planning process to help determine a business’ profitability.
3. Help investors determine whether these financial statements are accurate, or are an
attempt to alter the perception of a company’s financial stability.
4. Document will exclude costs surrounding an acquisition or merger, or a write down
of intangibles, such as depreciation and good will.
5. This exclusion of unique events and charges can help provide a clearer view of the
company’s long-term financial outlook.
3. Cash flow.
1. Statement which predicts the rate at which money will flow into and out of a
company in the future.
2. The purpose of this report is to show the liquidity of the firm, which reflects the
total funds available and accessible to the business
3. Company's management may insight into whether they are likely to have to make
temporary arrangements, such as borrowing, to cover a cash flow shortage.
4. Shows a more detailed breakdown of all the cash and liquid assets.
5. Document should include cash in a bank account, short-term investments, cash-able
bonds, accounts receivable, and other liquid assets.

c. Differentiate between:
i. Profitability ratio, and;
ii. Liquidity ratio

Profitability ratio Liquidity ratio

-a company's ability to pay off its short-terms debts
/obligations
-the higher the value of the ratio, the larger the
margin of safety that the company possesses to
cover short-term debts/ obligations.
-Determine whether a company will be able to
continue as a going concern by used to
operating cash flow ratio and determine the
relative percentage of cash and cash
equivalents to current liabilities.
-About cash flow out from company likes
liability, asset, current ratio, quick ratio.
-used to assess a business's ability to
generate earnings as compared to its expenses
and other relevant costs incurred during a
specific period of time.
-A class of financial metrics that are used to
assess a business's ability to generate earnings
as compared to its expenses and other relevant
costs incurred during a specific period of time.
-Used to measure how well a business is
performing in terms of profit and show a
company's overall efficiency and performance.
-About profit to company likes profit margin,
return on assets and return on equity.