Entrepreneurship Management

1) WHAT FINANCIAL MEASUREMENTS SHOULD BE PREPARED TO MEASURE COMPANY PERFORMANCE?

Some of the financial measurements that should be prepared to measure the company’s performance are 1) Measuring sales volume: this provides a better view of the business’s overall sales, whether they have increased or decreased. 2) Measuring profit: which consists in the difference between revenues and expenses as reported in the income statement curing an accounting period, and 3) Measuring cash generated: this helps identify the cash flow whether there is an increase or decrease in cash and the changes in cash position that occur  during  certain period of time. All these financial measurements are important because they serve as management directions and help to make the necessary adjustments to the business’s operations

2) WHAT ARE THE CATEGORIES AND STEPS  IN PREPARING A FINANCIAL BUDGET?

The categories in preparing a financial budget are:

-Sales

– Cost of goods sold

-Gross profit

– Operating Expenses

-Operating profit/loss

-Other income and expenses

-Pretax income

-Income taxes

-Net income

-EBIT

-EBITDA

The steps in preparing a financial budget are: 1) estimating an average number of sales for each month or the average cash flow revenue of the business, 2) estimating  the business’s cash flow disbursement of expenses.  and 3) analyzing the cash inflows and outflows of a certain period of time  and obtaining a balance which will be the base of the next month’s  and which cash flow activity will be added or subtracted.

4) DESCRIBE THE BREAKEVEN TECHNIQUE IN THE DECISION-MAKING MODEL TO DETERMINE PROFIT AND LOSS

The break-even technique indicates the point where the business’s sales have generated enough income to cover all of the fixed costs and expenses.This technique helps us know at what point a business starts making profits or helps us identify is there is loss so decisions can be made properly.

6) WHY IS BUILDING A CORPORATE CULTURE TO MATCH A COMPANY’S MISSION IMPORTANT?

I believe that a corporate culture and its mission should go hand in hand,  the culture should be consistent with the company’s mission, and the mission should be consistent with the company’s culture. I think building a corporate culture to match a company’s mission is important because the company will have certain goals that can only be met if the mission and culture support each other, These two help members of the company be aware of what the company is looking for, the company’s values and also makes them aware of how they should behave and what tasks must be performed in order to reach the company’s goals.

7) SELECT SIX LEADERSHIP ATTRIBUTES THAT YOU FEEL ARE THE MOST IMPORTANT WHEN BUILDING A STRONG CULTURE. WHY?

-Honesty

-Alignment

-Teams

-Empowerment

-Support

-Engagement

-Communication

I think honesty is very important not just in a business but in life in general; it helps build confidence among people, and in this case among members of the company, and it also helps create a good work environment. Alignment is important for the performance of the business, if employees’ interests and actions don’t support the company’s goals then the company’s performance  can suffer and be negatively impacted. Communication and support as well as engagement are also important; most of the time employees will have to work in teams  and interact with each other so they must communicate effectively to perform well as a team. I think that empowerment is also imperative because each employee is able to make a difference in the company, not just as teams, but individually, so empowering each employee to make a decision and have the freedom to take action without the supervision of a manager for example, is beneficial for the company too.

8) NAME THREE IMPORTANT FACTORS THAT YOU MUST TAKE INTO ACCOUNT WHEN HIRING KEY PEOPLE.

There are several factors that must be taken into account when hiring key people, some of these factors are: 1) the potential employee’s values should match the company’s values and culture, 2) potential employee’s skills can be trained and improved whereas values can’t, 3) sometimes using a professional recruiter can be the best choice when looking to hire key people since a bad hire can be fatal.