Small Business Ventures in the U.S. Ref: Babiar (#1501). The client requeste

This study was concerned with predicting the success of small business ventures in the United States. The essential question addressed within this context was the relative significance of the management of the operational variables associated with the success of a business enterprise as opposed to the background and personal characteristics of the individual beginning such a venture. In this chapter, literature is review in relation to the operational variables associated with the success of a small business venture. Literature relevant to the relationship between an individual's background and personal characteristics and the success of that individual in a small business venture is reviewed in the following chapter.

Five classifications of operational variable affecting the success of a small business venture are addressed in this chapter. These variable classifications are organizational form, capital generation, shortterm capital management, pricing and profitability management, and longterm capital management.

The form of business organization has a direct impact on the financial structure and financial performance of a firm. This impact results from differences in income tax liabilities for different types of business forms, and differences in the abilities of the different types of business to generate capital (Brigham, 1993, p. 94). Important organizational

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tems, held at stocking points, and serving to decouple successive operations in a manufacturing or distribution process (Peters, 1991, p. 221). Inventories may also be defined in an accounting context, as "the aggregate of those items of personal property which are (1) held for sale in the ordinary course of business, (2) in the process of production for later sale, or (3) held for current consumption in the production of goods and services . . . for sale" (Meigs and Meigs, 1992, p. 765). Inventories may be comprised of tangible goods, such as aircraft parts, or of intangible services, such as airline tickets. Inventory management and control is an important managerial function for the small business enterprise. There are many factors providing significance to the inventory management and control function. Among the more significant of these factors are the following: 1. It costs money to maintain inventories. This fact is a seemingly simple and obvious one; however, it is one which is often overlooked by small business managements. As an example, if a firm's cost of capital is 15 percent, the annual capital cost of carrying an inventory valued at $100,000 is $15,000, while it could cost $150,000 in interest charges per
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Some common words found in the essay are:
Brealey Myers, Leasing Financial, Joehnk Pinches, Meigs Meigs, Profitability Hampel, Liquidity Management, Subchapter Corporation, Relationship Rate, Management Inc, Budgeting Capital, subchapter corporation, income tax, capital management, inventory management, federal income tax, management control, shortterm financing, federal income, profit goals, brigham 1993, inventory management control, investment business activity, investment business, brealey myers 1993, corporation form organization,
Approximate Word count = 6198
Approximate Pages = 25 (250 words per page)