Download BU (Bangalore University) MBA (Master of Business Administration) 2nd Semester 2016 July Entrpreneurship Ethics Question Paper
|| Semester M.B.A. Degree Examination, July 2016
(CBCS)
MANAGEMENT ?
2.3 : Entrepreneurship and Ethics
Time :3 Hours Max. Marks : 70
SECTION ? A (5x5=25)
Answerany five of the following questions. Each question carriesfive marks.
1.
2.
Briefly explain the types of entrepreneurs.
What are the challenges of new venture start-ups ?
Discuss the steps involved in subjecting a business idea to a feasibility analysis,
What factors should an entrepreneur consider before choosing a form of
ownership ?
Write a brief note on.?Social Entrepreneurship?.
What is code of conduct and how useful is it in promoting ethical behaviour ?
How can entrepreneurs develop a position of ethical leadership in business
today ?
SECTION ? B (3x10=30)
Answerany three questions. Each question carries ten marks.
8.
9.
10.
11.
Discuss the importance and characteristics of entrepreneurs.
Explain the sources of finance for new venture.
Discuss the arguments for and against business ethics.
Describe the elements of a solid Business plan.
P.T.0.
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SECTION ? C 15
12. Case study : Compulsory:
A Question of Incorporation :
The Harlow family opened its first motel in 1982. Initially, business was slow.
it took almost 11 months to break even and three years for the Harlows to feel
that the operation was going to be a success. They stuck with it and by 1987
they were able to increase the size of the motel from 28 to 50 rooms. They
expanded again in 1989, this time to 100 rooms. In each case, the motel?s
occupancy rate was so high that the Harlows had to turn people away during the
months of April to September and the occupancy rate was 85 percent during the
other months. By industry standards, their business was one of the most
successful motels in the country.
As they entered the 19903, Harold and Becky Harlow decided that, rather than
expanding, they would be better off buying another motel, perhaps in a nearby
locale. They chose to hire someone to run their current operation and spend
most of theirtime at the new location until they had it running properly. In 1992,
they made their purchase. Like their first motel, the second location was an
overwhelming success within a few years. From then on, the Harlows bought a
number of new motels. By 1999, they had seven motels with an average of 100
rooms per unit.
During all of this time, Becky and Harold kepttheir own financial records, bringing
in a certified public accountant only once a year to close the books and prepare
their income tax returns. Last week the new accountant asked them how long
they intended to keep running seven motels. The Harlows told him that they
enjoyed the operation and hoped to keep at it for another ten years, when they
planned to sell out and retire.
Harold admitted that trying to keep all of the motels going at the same time was
difficult but noted that he had some excellent managers working for him. The
accountant asked him whether he would consider incorporating. ?If you
incorporate,? he said, ?You could sell stock and use the money to buy more
motels. Additionally, you could keep some of 1 us EilOCk for yourself so you could
maintain control of the operation, sell some for expansion purposes and sell the
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rest to raise some money you can put aside in a savings account or some
conservative investment. That way, if things go bad, you still will have a nest
egg built up.? The accountant also explained to Harold and Becky that, as a
partnership, they are currently responsible for all business debts. With a
corporation, they would have limited liability; that is, if the corporation failed, the
creditors could not sue them for their personal assets. In this way, their assets
would be protected, so the money Harold would get for selling the stock would
be safely tucked away.
The Harlows admitted that they had never really considered another form of
organization. They always assumed that a partnership was the best form for
them. Now they are willing to examine the benefits of a corporation and they will
go ahead and incorporate their business if this approach promises them greater
advantages.
Questions :
1) What are the advantages and disadvantages of a partnership ?
2) Contrast the advantages and disadvantages of a partnership with those of a
corporation.
3) Provide your opinion on whetherthe Harlows should incorporate.
4) Would the LLC option be of value to them ? Explain.
This post was last modified on 28 January 2020