Fiche pays Canada

BSM 200 – Winter 2022 Final Exam

Ranjita Singh

Part 2: Short answer questions:

1. Part a: Briefly define preconditions to growth, contingency planning and business strategy. Explain how the three are related.

Preconditions to growth represents the elements a business needs to grow and know its risks.

Contingency planning is a plan for a business’ potential risks.

A business strategy gathers the goals,objectives, and the mission of a specific business.

The three are related because they are all planning how the business can grow to achieve their goals but also considers the possible risks and how they could be managed. These plans can save a lot of time and money, minimize the damages, and be more confident.

Part b: For a company that creates, manufactures and sells functional beverages, i.e. drinks that not only are thirst quenching but also have health benefits, such as containing vitamins, nutrients or stimulants, suggest one organic and one inorganic growth mechanism the company could follow and related preconditions for each.

One organic growth mechanism for this particular company would be to make the drink sugar-free, organic, chemical-free, or calorie-free.

One organic growth mechanism for this particular company would be to make an ad with a celebrity/pop star to attract their fans.

1. HR programs help a growing business realize its goals by maximizing the effectiveness of the workforce by recruiting world-class talent, promoting career development, and boosting organizational efficiency. This greatly helps the business grow and gain more and more competent and qualified employees.

Intellectual property protection helps a growing business realize its goals in many ways. Patents help a business protect their rights for their invention. This makes businesses want to develop or create new products that will make them grow. Trademarks protect a business’ name, slogan or logo. This will prevent one business from being associated with other brands who have different images. For example, Nike’s check logo and “Just Do It” slogan is unique to their brand. This means that knockoffs cannot legally write Nike on a T-shirt. With trademarks, the brand's higher quality will not be associated with the cheap quality of the knockoff. Copyright protects the works of a business. For example, the recipe/list of ingredients in a specific energy drink can be protected so that the business is the only one to have this product. This will make them more motivated to produce more and search for new formulas which will make them grow.

1. Small business owners and the popular press often suggest that 'the system' favours big business.

Discuss whether this is true from any TWO of the following perspectives:

In the judicial system, some may argue that small businesses have a disadvantage. They cannot financially access legal/justice services as easily as bigger businesses which can cause a loss of income, loss of employees, and poor reputation to the business. This may lead to bankruptcy so yes, the judicial system still favours the bigger businesses.

Regarding the intellectual property laws, the big businesses are not in favour because each business is equal to these laws. However, a copyright, patent, or trademark can cost up to a couple hundreds of dollars so it might be difficult to pay this fee for very small and new businesses.

1. Finance question (20 marks total)

Based on the attached financial information for Startup Green Inc and BravoBeverages Inc. prepare a ratio analysis of the two companies.

1. Calculate the ratios for each of the companies and put them in your chart on the next page so that they can be compared. Include the formula you use for the calculation.

...