TEP234F_2022_ENTREPRENEURSHIP AND SMALL BUSINESS_E

A UNIVERSITY OF TORONTO FACULTY OF APPLIED SCIENCE & ENGINEERING FINAL EXAMINATION: December 15, 2022, 9:30 am - 12:00 noon DURATION: 2.5 hours Faculty-Wide program TEP234H1 - ENTREPRENEURSHIP AND SMALL BUSINESS Calculator Type: 1 Exam Type: X Examiner: J. C. Paradi CANDIDATES MAY BRING TO THE EXAMINATION AND USE ANY BOOKS, NOTES OR OTHER PRINTED OR WRITTEN MATERIAL, AND ANY TYPE OF CALCULATOR MAYBE USED. NO LAPTOP COMPUTERS. CELL PHONES. OR ANYTHING THAT CAN COMMUNICATE WITH OTHERS OR THE INTERNET ARE PERMITTED!! Max Score Q1 6 Q2 9 Q3 8 Q4 6 Q5 8 Q6 7 Q7 9 Q8 9 Q9 8 QIO 12 Qll 9 Q12 9 Total 100 There are 12 questions in this examination and you must complete all of them. The exam looks very long, but it is not . IF YOU DON'T WRITE VOLUMES of prose. If you know your material, it is a breeze! Keep the answers crisp and to the point. The questions are designed to test your understanding of the principles taught, not your ability to turn out volumes of prose. READ the exam instructions on the next page. Page 1 of 12

EXAM INSTRUCTIONS 1. Write your Department's code (ECE, MIE etc.) on the LEFT upper corner of the first examination book 2. Start each question (but not sub questions), on a separate page. 3. All questions can be answered in point form or in one or two sentences, as applicable, and therefore do not require verbose text 4. READ THE QUESTIONS CAREFULLY before starting to answer them!! The'eXaminafioiTi^baseclionlhe case^t the'end'd^f tfi^exam (pages'6-8)7plus some independ^f ” items. You have had the case before the exam date, so you should know what it is about You may re-read it to remind yourself of the details. YOU CAN KEEP THE EXAMINATION PAPER AND DATASHEET Page 2 of 12

Review the case (pages 7-9) carefully before you start answering the questions. Note that all questions except Question 1 are based directly on this case unless otherwise noted in the question. So ensure, where applicable, that your answers are pertinent to the case!! MARKS (6) Question 1 - Informed Businessperson: All successful businesspeople keep informed about their own industry's progress and how their company fits into the environment. Just as important, however, is the general awareness of what is going on in the economy, political events, stock markets, value of the Canadian dollar, new legislation, takeovers, mergers, business failures, etc. It is a requirement for every student to read the business press every day as part of the course. The following questions refer to events that are widely reported in the press during the past 3 months of 2022. (1 Mark Each) (i) What important new powers were granted to Toronto and Ottawa mayors? (ii) What was the recent (3 month or less) events at which Prime Minister Trudeau testified? (iii) What was a major world-wide event that happened in a very short time ago? (iv) Which country is at a war with Russia? (v) There is/was a significant shortage of a consumable item. What is it? (vi) What problem was/is in Ontario where a union and the government had/is in a big fight? (9) Question 2. - The Entrepreneur: Start each question on a new page!! Entrepreneurs make their companies a success, so their characteristics are of interest to us. Please respond to the questions below with no more than 1/2 page of text, but in some cases a few words will get you the marks, so don't waste time on useless volume of prose. (a) When I finished marking Entrepreneurs' Biographies over the years, more than half of the entrepreneurs interviewed stated that money is not the real driving force for them. If not money, what is it? (3 Marks) (b) Many people in education. Government, and large corporations are now paying attention to the process of entrepreneurial development. Each of these groups has its own ideas on what needs to be done to encourage entrepreneurship. While they are all working toward the same goal, they often disagree on one main point: should they start with individuals who think they have what it takes to be entrepreneurs or work only with those who have already exhibited entrepreneurial capabilities by actually starting an enterprise? (2 Marks each part) (i) Which approach is more effective, in your opinion (2-3 sentences only)? (ii) How do your views on the "talent must be there first" or "we can teach entrepreneurship to anyone willing to learn" explain your choice (2-3 sentences only)? (iii) What element is likely to be missing from all three instances mentioned above that might hamper their ability to understand entrepreneurship (2-3 sentences only)? Page 3 of 12

>s (8) Question 3. Intellectual Property (brief answers only!!) Start this question on a new page!! A) The proprietary (not allowed for others to duplicate) aspects of the business Gino and Nadiya has chosen are very important to the short and long term successes to them; list as many patentable opportunities the partners have in Meat Inc. as you can and briefly explain them. (4 marks) b) Can anything be Copyrighted in this case? How do you copyright something? (2 marks) c) How long does a Copyright last (for example: Patents last for 20 years)? (2 marks) (6) Question 4 - Franchising - (All answers to be brief!!) Start this question on a new page!! a) Why is Franchising a significant part of retailing all over the World? Give the main reasons for why a Franchisor would franchise their business. (3 marks) b) Is there an opportunity for the Meats Inc. partners to Franchise all or part of their business? Support your arguments well as either YES or NO will be acceptable if properly defended. (3 marks) (8) Question 5 - Legal issues Gust a few sentences!!) Start this question on a new page!! (a) What form of legal organisation should the partners look to for their future plans? (4 Marks) (b) Would it make sense to form a Joint Venture with some other firm (remember, they are exporting more and more of their products to the U.S.)? Explain why or why not. both answers are valid and the quality of the explanations will earn the marks! (4 Marks) Question 6 - Business Plan & Investors - (All answers are to be brief, no more than a few sentences!!) Start this question on a new page!! The Business Plan is arguably a "must" for businesses of any size in today's business environment. A successful firm will have mastered the tools and practices required for a competent BP. a) Although Gino and Nadiya's firm is not a shareholder company (yet), what information are their future shareholders will be entitled to from the company when they hold shares in? (3 marks) (7) b) Why is the Executive Summary the single most important part of the Business Plan? (2 marks) c) Explain what the "hockey stick" earnings curve is and why are investors concerned about it? (2 marks) Page 4 of 1,2