Entrepreneurial and Family Businesses Management
Instructor: Randy Elder, Ph.D., CPA
Office: 518 Crouse Hinds The Martin J. Whitman School of Management (SOM)
Office Phone: 443-3359
E-mail: rjelder@som.syr.edu
Web page: http://www.som.syr.edu/facstaff/rjelder
Blackboard: http://bizwiz.som.syr.edu
Class Hours: Tues. & Thurs. 10:00 a.m. - 11:20 a.m. in SOM 020
Office Hours: Monday 2:00 - 4:00 p.m.
Wednesday 9:30 - 11:30 p.m.
Also available by appointment.
1. Course Objective
The objective of the course is to familiarize students with some of the unique issues faced by owners of entrepreneurial and family businesses. Example of topics covered include selection of business form, tax planning, financing and cash flow planning. Special problems of family businesses include integrating family members into the business, motivating and retaining non-family employees, and business succession strategies. These issues will be viewed from a multi-disciplinary perspective that includes legal, tax and behavioral considerations.
2. Required Texts and Materials
Small Business Management: An Entrepreneurial Emphasis, Longenecker, Moore and
Petty, South-western College Publishing, 11th Ed., 2000.
Coursepack of notes and readings – Campus Copy Center (availability TBA).
The text is available at both the Orange and University Bookstores.
Optional Materials
Subscription to Wall Street Journal, Inc., or Entrepreneur magazine.
One of the objectives of this course is to familiarize you with issues faced by entrepreneurs and managers of closely-held businesses. These publications are excellent sources of information about issues currently affecting small businesses, and can be a valuable source of information for class discussion. Information on subscribing to Inc. can be found at www.inc.com and for Entrepreneur at www.entrepreneur.com.
3. Course Approach
We will address course topics using a variety of methods, including course readings, occasional guest lectures, cases, and most importantly, class discussion. Readings from the text and coursepack are indicated on the schedule attached to the syllabus. All students are expected to attend class and be active participants in class discussion.
The coursepack contains copies of the course notes for each subject. This should reduce the amount of note taking required in the course, and allow you to more actively participate in class discussion. The course notes also contain additional readings for the course. Course material will be presented on Powerpoint slides, which can be downloaded from the course schedule web page.
You are encouraged to discuss any concerns you have regarding the conduct of the course with the instructor.
4. Grade Determination
The points used in determining your grade are as follows:
Points
First Examination
Second Examination
Term paper
Problems and Cases (8)
Attendance and participation
Total points 100
100
100
80
60
440
Grading Scale - The following is an approximate grading scale:
Letter Grade Minimum Points
A 215
A- 385
B+ 370
B 355
B- 340
C+ 325
C 310
C- 290
D 260
After the second examination, I will provide you with a summary of your points earned to date, along with an estimate of your letter grade based on that performance.
5. Examinations
Two examinations will be given during a regular class period. The exams will include objective, short answer and brief essay problems, and will cover all new material studied in the course up to the date of the exams. Prior to each exam, I will give you an idea as to the types of questions that may be asked. Copies of the exam from the Fall, 2000 semester will be made available on the course web page. Examinations will be designed and graded to evaluate your understanding and ability to apply course concepts.
6. Term Paper
Each class member is required to complete a term paper of 8-12 pages in length addressing in depth a problem or issue relating to closely-held or family businesses. The paper can address in-depth an issue that we discussed during the term, or some other topic that interests you.
The paper must include both research citations and examples. For example, you might choose to write your paper on employee stock ownership plans (ESOPs). In your paper, you would cite several sources that describe issues relating to the use of ESOPs, as well as examples of companies that have used ESOPs that illustrate these points. At least some of these references must be from written publications (these may be accessed through the Internet). Although Web sites are valuable, they cannot be the only sources for your paper.
Your research can focus on one company you are interested in, such as a family business or a potential franchise investment. These papers require references similar to a paper topic. Your paper can also be the development of a business plan. However, this must be a business that you have definite interest in starting, and you must provide market and other financial data for the plan to be acceptable. Up to three students can work on a business plan, but this should be reflected in the length and content of the plan.
All papers must represent original work. Any act of plagiarism or inappropriate use of other materials will result in a zero grade for the paper. You can develop a paper that was submitted in another EEE course, but the paper submitted in this course must reflect additional material and development.
Further information on the form and content of the term paper will be distributed later in the term. Your paper topic is due on Tuesday, October 23rd. You must submit a list of references by Tuesday, November 6th. The term paper is due Friday, December 7th.
7. Problems and Cases
There are twelve cases and problems (six problems; six cases) assigned during the semester. Problems are located in the course notes for the chapter, except for those to be distributed by the instructor. Cases are located at the end of the text. Each member of the class is required to complete eight of the twelve assignments. If you complete more than eight assignments, you will receive credit for the eight assignments with the highest grades.
Answers to problems and cases should be typed, except for numerical analyses, which can be neatly prepared in pencil or pen. Assignments will be graded on both content and presentation. There are 10 points available for each assignment. It is acceptable to discuss these problems with classmates, but your written analysis is expected to be original work. There is no required length for these analyses, but the expected length is typically 1-2 pages. Assignments will be collected at the start of class, and may be submitted by email prior to class. Because you may miss up to four assignments, no late assignments will be accepted.
8. Participation and Attendance
In accordance with University Policy, regular attendance in class is expected of all students. Students are also expected to actively participate in class discussion. The instructor will record participation in discussion. Depending on class size, you may be asked to self-report your participation to supplement the instructor's evaluation.
Discussion is expected for problems and cases, and other problems and articles that are distributed in class. The course notes indicate additional areas where you should be able to add to class discussion, and should be read prior to attending class. Some participation credit will be given for relevant postings to the Blackboard discussion forum, but does not substitute for in-class discussion.
9. Academic Integrity Policy
The faculty of the The Martin J. Whitman School of Management has adopted an Academic Integrity Policy emphasizing that honesty, integrity, and respect for others are fundamental expectations of students and faculty in our School. The Policy requires all students who take SOM courses to certify in writing that they have read, understand and agree to comply with the Academic Integrity Policy.
All assignments are expected to be original works. Any act of academic dishonesty will result in a minimum penalty of a zero grade for that assignment, and reporting pursuant to the Academic Integrity Policy.
10. Compliance with Section 504 of the Rehabilitation Act
Any student requiring special consideration because of any type of disability should make an appointment to meet with the course instructor.
Tues Aug. 28 1 Introduction Defining the Topic Ch. 1Thurs Aug. 30 2 Franchising Ch. 3
Tues Sept. 4 3 Starting Your Business Ch. 4
Thurs Sept. 6 4 Purchasing a Business Case 1 – Steve's Olympic Tees
Tues Sept. 11 5 Business Valuation Problem 1 - Hobby Shop
Thurs Sept. 13 6 Assessing Your Market Ch. 7 Case 5 – Fantastic Catalog
Company
Tues Sept. 18 7 Choosing a Form of Business Ch. 8
Thurs Sept. 20 8 Choosing a Form of Business Problem 2 – Cosmetic and
Toiletry Business
Tues Sept. 25 9 Physical Location and Planning Ch. 9 Case 8 – Silver Zephyr Restaurant
Thurs Sept. 27 No class Yom Kippur
Tues Oct. 2 10 Sources of Funds Ch. 11 Problem 3 – Walker Machine Works
Thurs Oct. 4 11 Pricing and Credit Strategies Ch. 13
Tues Oct. 9 12 Cash Flow Management Ch. 22 Problem 4 – Golf Supply Shop
Thurs Oct. 11 13 Cash Flow Management
Tues Oct. 16 14 First Examination
Thurs Oct. 18 15 Accounting Systems Ch. 21
Tues Oct. 23 16 Fraud Prevention CP - Lasser, Ch. 16 Paper topic due
Thurs Oct. 25 17 Tax Planning and Owner Compensation CP – Lasser, Ch. 7 Compensating Yourself, Coopers & Lybrand (p. 47-53) Problem 5 - Trolley Dodgers & Howard Street Jewelers
Tues Oct. 30 18 Employee Compensation and Human Resources Ch. 18
CP - Motivating Employees to Improve Productivity, Deloitte & Touche, Ch. 3
Thurs Nov. 1 19 Fringe Benefit Planning CP - Fringe Benefits, Tax Advisor, p. 142-148 Problem 6 - Tax Planning
Tues Nov. 6 20 Risk and Insurance Planning Ch. 23 Paper references due
Thurs Nov. 8 21 Guest Speaker - George Hanford, G. C. Hanford Manufacturing Case 23 - Fox Manufacturing
Tues Nov. 13 22 Family Business Ch. 2 Problem 7 – Construction Equipment Dealership
Thurs Nov. 15 23 Integrating Family Members CP - The Transition to New Leadership, Ward (Ch. 8)
Tues Nov. 20 24 Estate and Succession Planning CP- Planning for the Continuity of Your Business, Deloitte & Touche (Ch. 8) Case 16 – The Martin Company
Thurs Nov. 22 No Class Thanksgiving
Tues Nov. 27 25 Exit Strategies Ch. 24
Thurs Nov. 29 26 Second Examination
Tues Dec. 4 27 Exit Strategies
Thurs Dec. 6 28 Course wrap-up Paper Due – Friday, December 7th
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