Understanding Canadian Business Canadian 8Th Edition Nickels Solutions Manual Full Chapter PDF

Understanding Canadian Business
Canadian 8th Edition Nickels Solutions

Manual
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INSTRUCTOR’S MANUAL
CHAPTER 7
Entrepreneurship and Starting a Small Business
BRIEF CHAPTER OUTLINE AND LEARNING GOALS
Opening Profile: Getting To Know Marlene Ross of Marlene Ross Design
I THE AGE OF THE ENTREPRENEUR
A. Well-known Canadian Entrepreneurs
➢ Learning Objective 1
Explain why people are wiling to become entrepreneurs, and describe the attributes
of successful entrepreneurs.
I WHY PEOPLE TAKE THE ENTREPRENEURIAL CHALLENGE
A. What Does it Take to be an Entrepreneur?

B. Turning Your Passions and Problems into Opportunities
C. Female Entrepreneurs
D. Entrepreneurial Teams
E. Micropreneurs and Home-Based Businesses
F. Web-Based Businesses
G. Entrepreneurship Within Firms
7-1 Nickels, UNDERSTANDING CANADIAN BUSINESS, 8th Canadian Edition ©McGraw-Hill Ryerson, 2013
II ENCOURAGING ENTREPRENEURSHIP: WHAT GOVERNMENT CAN DO
Discuss the importance of small business to the Canadian economy.
I GETTING STARTED IN SMALL BUSINESS

A. Small Versus Big Business
B. Importance of Small Businesses
C. Wide Diversification
Summarize the major causes of small-business failure.
A. Small-Business Success and Failure
List ways to learn about how small businesses operate.
I LEARNING ABOUT SMALL-BUSINESS OPERATIONS
A. Learn from Others

B. Get Some Experience
C. Buy an Existing Business
D. Buy a Franchise
E. Inherit/Take over a Family Business
Analyze what it takes to start and run a small business.
I MANAGING A SMALL BUSINESS
A. Planning
1. Writing a Business Plan
B. Financing Your Business
1. Online Financing Sources
C. Knowing Your Customers
D. Managing Your Employees
E. Keeping Records
F. Looking for Help
Outline the advantages and disadvantages that small businesses have in entering
global markets.
I GOING INTERNATIONAL: SMALL-BUSINESS PROSPECTS
Key Terms
affiliate marketing entrepreneurship small and medium-sized
angel investors incubators enterprises (SMEs)
business establishment intrapreneurs small business
business plan market venture capitalists (VCs)
employer business micro-enterprise
entrepreneurial team micropreneurs
Resource Checklist
FIGURES FROM TEXT
Fig. 7.1 Potential Home-Based Businesses

Fig. 7.2 Number of Business Establishments by Sector and Firm Size (Number of
Employees)
Fig. 7.3 Causes of Small-Business Failure
Fig. 7.4 Small-Business Success Factors
Fig. 7.5 Sample Outline of a Business Plan
Fig. 7.6 Types of Financial Instruments Used by All Start-Ups SMEs (2007)
EXERCISES AND BOXED FEATURES FROM TEXT
Spotlight on Small Business, p. 203

- MyVoice is My Business
Greenbox, p. 205
- Socially Responsible Entrepreneurship
Making Ethical Decisions, p. 217

- Sabotaging Your Employer
End of Chapter Content

- Critical Thinking
- Developing Workplace Skills
- Analyzing Management Decisions: Starting a Small Business While in School (See
p. 16 of this manual for answers)
SUPPLEMENTARY EXERCISES IN THIS MANUAL
LECTURE LINKS
Lecture Link 7-1
Charles Babbage: 19th Century Entrepreneur
Lecture Link 7-2
The Man Who Was Almost Bill Gates
CRITICIAL THINKING EXERCISES

Critical Thinking Exercise 7-1
What Does it Take to be an Entrepreneur?
Critical Thinking Exercise 7-2
Writing a Business Plan
Supplemental Case 7-1

3M Company, Intrapreneurial Leader
Lecture Outline
Outline Supplements
The PROFILE at the beginning of the chapter focuses on Marlene
Ross of Marlene Ross Design. She has changed the face of
hockey, designing and painting original pieces of “Mask Art” for
several top hockey players. For a while, Ross painted masks for
Itech, and was offered a contract. But she wanted to remain
independent, so she turned the offer down, to start her own line of
designs, all of which she owns full rights to.
I THE AGE OF THE ENTREPRENEUR
Entrepreneurship is accepting the challenge of starting and

running a business.
Entrepreneurial ventures differ from small businesses in four ways:

1. Amount of Wealth Creation;
2. Speed of Wealth Creation;
3. Risk; and
4. Innovation.
A. Well-Known Canadian Entrepreneurs
Entrepreneurs have played a major role in developing the

Canadian economy.
1965 – Jim Pattison – Jim Pattison Group

1922 – John W. and Alfred J Billes – Canadian tire
1907 – J. W. Sobey – Sobeys
1909 – Ablan Leon – Leon's Furniture Limited Spotlight on Small
1924 – Kenneth Colin Irving – Irving Oil Business (p. 203)
Explain why people are willing to become
entrepreneurs, and describe the attributes of
successful entrepreneurs.
Lecture Links 7-1 and

7-2
II WHY PEOPLE TAKE THE ENTREPRENEURIAL

CHALLENGE
Some of the many factors that have contributed to starting a

business are as follows: Critical Thinking 7-1
1. new ideas, process, or product;

2. independence;
3. challenge;
4. family pattern;
5. profit;
6. and immigrants.
A. What Does It Take to Be an Entrepreneur?
A list of entrepreneurial attributes are as follows:
1. Self-directed.
2. Self-nurturing.
3. Action-Oriented.
4. Highly Energetic.
5. Tolerant of Uncertainty.
6. Able to Learn Quickly. Making errors is inevitable.
Entrepreneurs don’t always look for what customers need – they

look for what they don’t need as well.
B. Turning Your Passions and Problems into Opportunities
While many entrepreneurs’ business ideas are inspired by Green Box (p. 204)
their passions (see the Green Box for an example), many
see business opportunities in their problems. For example,
Anita Roddick started The Body Shop < www.thebodyshop
.com >, which recycles its bottles and jars, because she hated
paying for expensive packaging when she bought makeup.
C. Female Entrepreneurs
Statistics Canada’s Labour Force Survey reports that there were

50,000 self-employed women in Canada in 2011, accounting for
about one-third of all self-employed persons. Between 2001 and
2011, the number of self-employed women grew by 23 percent,
compared with 14 percent growth in male self-employment.
Accommodation and food services industries have the highest
share of businesses that are majority-owned by females (25
percent), whereas small businesses in agriculture and primary
industries have the lowest level (9 percent).
The INCREASE of women entrepreneurs is due to some of the

following reasons:
1. financial need;
2. lack of promotional opportunities;
3. women returning to the workforce;
4. family and personal responsibility;
5. public awareness of women in business;
6. part-time occupations; and
7. a higher rate of success for women.
D. Entrepreneurial Teams
An entrepreneurial team is a group of experienced people from

different areas of business who join together to form a managerial
team with the skills needed to develop, make, and market a new
product. Figure 7.1 (p. 209)
E. Micropreneurs and Home-based Businesses
Micro-enterprises are defined as a small business having fewer

than five employees.
Micropreneurs small-business owners with fewer than five

employees who are willing to accept the risk of starting and
managing the type of business that remains small, lets them do
the kind of work they want to do, and offers them a balanced
lifestyle.
Micro-enterprises represent 55 percent of all employer businesses

in Canada.
Some of the main reasons for micropreneurs are:

1. computer technology
2. corporate downsizing
3. change in social attitudes
Some of the major challenges in setting up a home-based

business include the following:
1. getting new customers;
2. managing time;
3. keeping work and family tasks separate;
4. abiding by city ordinance; and
5. managing risk.
F. Web-Based Businesses
Many Web-based businesses have been created as a result of the

Internet.
There are some real e-commerce challenges in Canada. Despite

Canada’s reputation as one of the world’s most wired and digitally
social people, Canadians only spent $18 billion online in 2010, or
3.4 percent of total retail sales, according to Boston Consulting
Group. This is well behind other developed countries such as the
United States at 5 percent and the United Kingdom at 13.5
percent. When you consider these sales, four in ten dollars that
are spent online go abroad and not into the Canadian economy.
While online spending is expected to nearly double by 2015,
Canada is expected to fall even farther behind: “Canada has been
a little sleepy as far as getting online” to shop, said Jeffrey Grau,
an analyst with U.S. market research firm eMarketer
G. Entrepreneurship within Firms
Intrapreneurs are creative people who work as entrepreneurs

within corporations. The idea is to use a company's existing Supplemental Case
resources – human, financial and physical – to launch new 7-1
products and generate new profits
III ENCOURAGING ENTREPRENEURSHIP: WHAT

GOVERNMENT CAN DO
The federal and provincial governments provide many services to

help entrepreneurs and small businesses succeed.
The different levels of government provide many services to help

entrepreneurs and small businesses to succeed. Canada
Business Network < www.canadabusiness.ca > is a federal
government information service for entrepreneurs that serves as a
single point of access for federal and provincial/territorial
government services, programs, and regulatory requirements for

business. Canada Business’s mandate is to serve as the primary
source of up-to-date and accurate business related information
and to provide referrals on government programs, services, and
regulations— without charge—in all regions of Canada. The
mission of Canada Business is to improve the start-up, survival,
and growth rates of small and medium-sized enterprises. This
includes assisting with sound business planning, market research,
and the use of strategic business information.
Incubators are centres that provide hands-on management

assistance, education, information, technical and vital business
support services, networking resources, financial advice, as well
as advice where to go to seek financial assistance.
Incubators help companies survive because they provide

assistance in the CRUCIAL EARLY DEVELOPMENT STAGE.
The goal of an incubator is not only to ensure that the small

business survives the start-up period, but also to produce
confident, successful graduates who will run a productive business
in the future.
Discuss the importance of small business to the
Canadian economy.
IV GETTING STARTED IN SMALL BUSINESS
In general, the SAME PRINCIPLES apply to small and large

companies, government agencies, and nonprofits.
All organizations demand capital, good ideas, planning,

information management, budgets, accounting, marketing,
employee relations, and good overall management know-how.
A. Small versus Big Business
A business establishment has at least one paid employee,

annual sales revenue of $30,000, or is incorporated and has filed
a federal corporate income tax return at least once in the previous
three years.
There are OVER 2.4 MILLION business establishments in

Canada, with approximately 1.1 million of them considered
employer businesses.
An employer business meets one of the business establishment

criteria and usually maintains a payroll of at least one person,
possibly the owner.
A small business is a business that:
a. is independently owned and operated; Figure 7.2 (p. 213)

b. is not dominant in its field; and
c. meets certain standards of size in terms of employees or
annual revenues.
B. Importance of Small Businesses
Here are some quick facts about small businesses (in this case,
defined by Industry Canada as firms that have fewer than 100
employees):
1. Approximately 98 percent of businesses in Canada have
fewer than 100 employees;
2. On average, 100,000 new small businesses are created in
Canada each year;
3. Small businesses employ approximately 5 million
individuals in Canada, or 48 percent of the total private
labour force;
4. Small businesses contributed slightly more than 30 percent
to Canada’s gross domestic product; and
5. About 86 percent of Canadian exporters were small
businesses. Most of Canada’s jobs are in small businesses.
C. Wide Diversification
You will find small business in many sectors, including the

following:
1. service businesses;
2. retail businesses;
3. construction firms;
4. wholesalers;
5. manufacturing;
6. and farming.
Summarize the major causes of small-business failure.
D. Small-Business Success and Failure

Figure 7.3 (p. 215)
There is some debate about how many new small businesses fail
each year.
Figure 7.4 (p. 215)
Many small businesses fail because of MANAGERIAL
INCOMPETENCE and INADEQUATE FINANCIAL PLANNING.
Choosing the RIGHT TYPE OF BUSINESS is critical to success.
If you want to be both independent and rich, you need to go after

growth.
List ways to learn about how small businesses
operate.
V LEARNING ABOUT SMALL-BUSINESS OPERATIONS
There are several ways to get into your first business venture:
1. learn from others
2. get some experience
3. buy an existing business
4. buy a franchise
5. inherit/takeover a family business
A. Learn From others
Investigate your LOCAL area or school for classes on the subject.

Making Ethical
Talk to ENTREPRENEURS that have already done it. Decisions (p. 217)
B. Get Some Experience
Go to work for others and learn all you can.
The general rule is: THREE YEARS of experience in a

comparable business.
Many new entrepreneurs come from corporate management.
C. Buy an Existing Business
Small-business management takes time dedication and

determination. Owners work long hours and rarely take vacation.
After many years, some small business owners feel stuck in their
business.
You can offer become a successful small business manager and

then offer to buy the business.
Beware that nearly half of Canada's small-business owner plan to

retire before 2020.
How do you determine the price for the business: Value is based
on (1) what the business owns, (2) what it earns and (3) what
makes it unique.
D. Buy a Franchise
From an investment standpoint, you are not creating a product or

service from scratch. Rather, you are benefiting form the
experience of the franchisor.
E. Inherit/Take Over a Family Business
There are a number of factors that make family businesses

unique: ownership, where the business is owned by a small group
of people whose ownership often has elements of personal
identity, family legacy, and community responsibility entwined with
its economic interests; concept of stewardship with the firm idea
that the business is something to be preserved and grown.
Analyze what it takes to start and run a small
business.
VI MANAGING A SMALL BUSINESS
The number one reason for small-business failure is poor
management.
The following sections explore the functions of small businesses.
A. Planning
Small businesses start with an idea that can be developed.
A business plan is a detailed written statement that describes the

nature of the business, the target market, the advantages the
business will have in relation to competition, and the resources
and qualifications of the owner(s). A business plan is mandatory
for talking with bankers or other investors.
1. Writing a Business Plan Figure 7.5 (p. 221)
One of the most important parts of the business plan is the Critical Thinking
EXECUTIVE SUMMARY, which has to catch the reader’s interest. 7-2
Getting the completed business plan in the right hands is almost

as important as getting the right information in it.
B. Financing Your Business
New entrepreneurs have several sources of CAPITAL: personal

savings, relatives, former employers, banks, finance companies, Fig. 7.6 (p. 222)
venture capital organizations, government agencies, and more.
POTENTIAL SUPPLIERS may also be a funding source.

Venture capitalists (VCs) are individuals or companies that
invest in new businesses in exchange for partial ownership of
those businesses.
Angel investors are private individuals who invest their own

money in potentially hot new companies before they go public.
1. Online Financing Sources
There are many information sources for financing. Examples of

government grants and programs include the Scientific Research
and Experimental Development program and the National
Research Council’s Industrial Research Assistance Program.
From the comfort of your desk, you can visit government sites
such as the Business Development Bank of Canada or Industry

Canada’s Financing site
< www.ic.gc.ca/eic/site/ic1.nsf/eng/h_00073.html >.
C. Knowing Your Customers
A market consists of people with unsatisfied wants and needs

who have both the resources and the willingness to buy.
Once you have identified your market and its needs, you must set
out to fill those needs by offering top quality at a fair price with Dealing with Change
great service. (p.231)
One of the greatest advantages that small businesses have over

larger ones is the ability to know their customers better and to
adapt quickly to their ever-changing needs.
D. Managing Employees
It is not easy to FIND, HIRE, TRAIN, AND KEEP GOOD

EMPLOYEES.
Employees of small companies are often more SATISFIED with

their jobs than their counterparts in large companies.
There are problems in promoting employees who have been with
the entrepreneur from the beginning but are not qualified, or firing
family members in the business.
E. Keeping Records
A businessperson who sets up an ACCOUNTING SYSTEM early

will salve much grief later.
COMPUTERS simplify record keeping and enable the business

owner to follow the progress of the business.
A good ACCOUNTANT is invaluable in the record-keeping
process.
F. Looking for Help
Small business owners should consider getting legal, accounting,

tax and marketing advice early on.
Other expert advice can come in the form of a commercial account

officer and an insurance agent.
Outline the advantages and disadvantages that small
businesses have in entering global markets.
VII GOING INTERNATIONAL: SMALL-BUSINESS PROSPECTS
Most small businesses do not think internationally.
Reasons for not going international: (1) financing is often difficult

to find; (2) many would-be exporters don't know how to get started, Reaching Beyond Our
(3) potential global business people do not understand the cultural Borders (p. 232)
differences of prospective markets, and (4) the bureaucratic
paperwork can threaten to bury a small business.
Small businesses have several advantages over large businesses

and it is worthwhile to leverage these strengths when dealing with
overseas buyers.
TEXTBOOK CASE
ANALYZING MANAGEMENT DECISIONS QUESTIONS AND ANSWERS

STARTING A SMALL BUSINESS WHILE IN SCHOOL
1. What are the advantages and potential problems of starting a business while in
school?
The advantage is that you can learn and earn while you are going to school. You
can find other students to help in the business and can make many mistakes that
will prevent you from making similar mistakes later. You will develop good work
habits and have four or more years of experience when you graduate.
On the other hand, a small business takes so much time that your grades may
suffer. You may feel stressed and too tired to study. In other words, you should try
to start a business that does not demand full time work.
2. What kinds of entrepreneurs are operating around your school? Talk to them and
learn from their experiences.
Be sure to look for pizza parlours, copy shops, dry cleaners and other stores that
cater to students. See if the owners were not students at your school at one time.
Now is the time to learn some hints before you graduate.
3. What opportunities exist for satisfying student needs at your school? Pick one idea,
write a business plan, and discuss it in class. Pick one idea, write a business plan,
and discuss it in class (unless it’s so good you don’t want to share it; in that case,
good luck.)
Be sure to consider the need for dating services, entertainment services, dances,
food services, tutoring, typing services, rides home and other transportation
services, and more.
4. Search and find what other Canadian competitions exist for student entrepreneurs
Would you enter any of them?
This is a good discussion question. Be prepared for several different points of view.
RUNNING CASE
FOX 40 INTERNATIONAL INC: A FAMILY BUSINESS
Discussion Questions
1. What are some advantages of Canadian-owned private corporations over public

corporations?
One of the biggest advantages of incorporation is limited liability. Owners of private

corporations can make decisions more quickly than is typically the case for large,
public corporations. Second is ownership. Public companies are typically owned by
a large number of shareholders whose primary interest in ownership is generating
the best return on investment. However, family businesses are often owned by a
much smaller group whose ownership often has elements of personal identity,
family legacy, and community responsibility entwined with its economic interests.
This “emotional ownership” often results in family businesses having a longer-term
view. Another factor that tends to separate successful family firms from their public
counterparts is the concept of stewardship. Many family businesses have a clear
understanding that the business is something to be preserved and grown for future
generations.
2. What are reasons why people are willing to take the challenge of starting a
business?
Some of the many reasons that have contributed to taking on the challenge of
starting a business are as follows:
1. new ideas, process, or product;

2. independence;
3. challenge;
4. family pattern;
5. profit;
6. and immigrants.
3. “Immediate family members are given an opportunity to work for the company for a
living,” says Dave Foxcroft. What are some possible challenges in working with
family members? How can these challenges be managed?
The challenges are that family members expect you to be perfect and there is an
expectation that you improve thereafter. The way to manage them is not to hold
grudges and never discuss work outside of the office.
LECTURE LINK 7-1

CHARLES BABBAGE: 19TH CENTURY ENTREPRENEUR
Nineteenth century England was not ready for Charles Babbage. The
mathematician had already proven his ingenuity by inventing the speedometer, the
cowcatcher, and the first reliable life-expectancy tables when his enthusiasm turned to the
problem of calculations. His first machine, which was designed to calculate logarithms,
was an intricate system of gears and cogs, which he called the Differential Engine.
No sooner had the Differential Engine been completed than Babbage proposed an
expanded machine: one with a central “mill” for performing logical operations, a “store” or
memory to hold information, and means to put information in and retrieve it. In short, these
are all of the elements of a modern computer. The Analytical Engine became his
obsession. Along with his patron, Ada the Countess of Lovelace, he worked for nearly forty
years to perfect it. Ada, Lord Byron’s mathematically gifted daughter, wrote the initial set of
instructions for the Engine, the world’s first computer program.
When Babbage died in 1871, all he had to show of his machine were thousands of
sketches—the machine was never built. In order to perform the intricate calculations he
developed, the Engine’s parts had to be machined to precise tolerances. No craftsman of
the age could do so. If it had been built, the Analytical Engine would probably have been
as big as a football field and would have required half a dozen locomotive engines to
power it.
LECTURE LINK 7-2

THE MAN WHO WAS ALMOST BILL GATES
Bill Gates won, Gary Kildall lost. In the accepted version of history, Bill Kildall blew
off a meeting with IBM representatives to go flying, thus losing the opportunity to sell his
operating system to IBM for use on the hugely successful IBM personal computer. But
Kildall’s own words, in a never published memoir written shortly before his death in 1994,
detail a slightly more complicated tale.
Like Bill Gates, Kildall was raised in the Seattle area, and like Gates Kildall had a
passion for computers. Their paths even crossed when Gates, a high school student, and
Kildall, a college student, both worked on the same computer system. Kildall joined the
Navy and became a Computer Science instructor at the Navy’s Post-Graduate School in
Monterey, California.
Kildall and his students wrote a small control program, which he called CP/M
(Control Program/Microcomputer) that allowed the microprocessor to communicate with a
floppy drive. After his discharge from the Navy, he started Digital Research to market his
program. The beauty of CP/M’s operating system was that it was separate from the
hardware, allowing applications to run on computers from different manufacturers. His
operating system soon dominated the market. It found its way onto computers
manufactured by Apple, Radio Shack, Commodore, Zenith, Sharp, and almost a hundred
other manufacturers.
But Kildall was slow to write an updated version of his OS for the newer 16-bit
microchips, Tim Paterson of Seattle Computer Products, took parts of CP/M and rewrote
the program for the newer processors. Paterson called his system QDOS (Quick and Dirty
Operating System.)
What happened next is unclear. What is known is that IBM approached Digital
Research about licensing CP/M for use on the soon-to-be-introduced IBM PC. The widely
believed story is that Kildall blew off the meeting to fly his plane, leaving Dorothy McEwing,
the company’s business manager (and Kildall’s wife) to meet with the IBMers. Supposedly,
McEwing balked at signing the IBM non-disclosure agreement and refused to make any
modifications to CP/M. The IBM staffers left, looking elsewhere for an operating system.
Kildall remembered it differently. He did take his plane out that morning, but
returned in time for the meeting. (A Digital Research colleague Tim Rollander was on the
plane with Kildall and insists they returned and attended the meeting.) Kildall stated that he
and IBM reached a handshake agreement that day. Insiders at IBM believe no deal was
made.
IBM then approached Bill Gates to see if he could provide the operating system.
Gates did not have an appropriate program, but he knew Tim Paterson had created QDOS
based on CP/M. Gates bought the program from Paterson for $50,000, renamed it PC-
DOS, and licensed it to IBM for a low royalty rate.
Kildall and Digital Research never recovered. Within a few years, the IBM PC was
the undisputed champ, and Microsoft was the leading provider of operating systems.
Kildall introduced a DOS compatible version of CP/M in 1989 but claimed that Microsoft’s
marketing tactics shut him out of the market. He remained bitter, believing that Microsoft
stole the market by licensing Paterson’s rewrite of his operating system. He was 52 when
he died in 1994 after falling outside a Monterey restaurant.
Sources: Sole Libes, “The Gary Kildall Legacy,” Amateur Computer Group of New Jersey,
1995; “Who Made America? Gary Kildall, PC Software,” National Public Broadcasting
System, 2004, PBS.org; Steve Hamm and Jay Greene, “The Man Who Could Have Been
Bill Gates,” BusinessWeek, 25 October 2004; and “They Transformed the World,” Parade
Magazine, 24 October 2004.
Name_________________________
Date_________________________
CRITICAL THINKING EXERCISE 7-1

WHAT DOES IT TAKE TO BE AN ENTREPRENEUR?
Entrepreneurship is risky business. Thousands of new businesses are started and

thousands of others fail each year. Why would someone give up the security of working for
others to assume the risk of business ownership? Find out by interviewing two or three
small businesspeople in your area. Ask them the questions listed below.
1. Did you ever work for someone else? If so, why did you stop?
2. Why did you want to go into business for yourself?
3. What expectations did you have when you started the business?
4. Which of these expectations were fulfilled?
5. Which of your expectations were not fulfilled?
6. What advice do you have for an entrepreneur thinking of starting a new business
today?
Name_________________________
Date_________________________
CRITICAL THINKING EXERCISE 7-2

WRITING A BUSINESS PLAN
One of Mike McNeely=s favorite pastimes as a teenager was taking his old car apart
and putting it back together again. After graduation, Mike started working as a mechanic
for his Uncle Larry’s auto repair shop. Many of the customers specifically ask for Mike to
work on their cars because they know that he knows what he’s doing and that he’s honest.
It’s been ten years since Mike started his job. Now he thinks that he would like to
open his own auto repair shop. He saved up some money and he thinks his rich Uncle
Buck will lend him the rest. He started writing a business plan and so far has: (1) a
description and appraisal of the market area, (2) an analysis of the competition, (3) a list of
potential suppliers, (4) a list of purchasing and pricing procedures, and (5) a list of
personnel needed and their job descriptions.
1. What important items are missing from Mike’s plans?
2. What steps can Mike take to insure success if he starts his own business?
ANSWERS TO CRITICAL THINKING EXERCISE 7-2
1. What important items are missing from Mike’s plans?

The business plan should start with a brief overview stating the goals and
objectives of the firm. How big does Mike want to get? How many employees? In
what locations? Using what kind of financing?
It is nice to think that a “rich uncle” will provide financing, but even rich uncles need
to know how much money will be needed, how it will be spent, and what risks are
involved. He may also have some interest in how the money is going to be paid
back. You need a cash-flow analysis just to get some short-term money from a
bank. You simply cannot be casual about funding and succeed in a small business.
If Mike intends to have others on his managerial team, he should describe them
and their backgrounds and who will be responsible for what. In addition, he should
mention any outside experts, such as accountants and lawyers he may use.
A more complete marketing program will show potential investors, including Uncle
Buck, how Mike intends to promote the business. Many mistakes are made at this
stage, such as not doing promotions early enough and then sitting around waiting
for customers. A sales forecast needs to be made to show whether or not the goals
of the firm are being met right from the start.
In short, a business plan cannot be some casual thrown-together proposal. It takes
time and effort. But the time is well spent because the business can then get off on
the right foot.
2. What steps can Mike take to insure success if he starts his own business?
No one can be sure of success with a small business. That is why so many of them
fail within five years. The best way to protect against failure is to have a very
complete business plan at the start, to hire the best advice possible, and to set up
measures along the way to show if the business is getting off track. One of the most
critical areas of concern is financing. But marketing and personnel are important as
well, especially in this era when there are serious shortages in the labor market.
SUPPLEMENTAL CASE 7-1

3M COMPANY, INTRAPRENEURIAL LEADER
Each year the 3M Company produces about 60,000 different products from more
than 40 separate divisions employing more than 5,000 engineers and scientists making
$21.2 billion in sales. A multi-billion company hardly sounds like an entrepreneurial
hideout, but it is.
Employees are encouraged to some 15% of their work time researching new ideas
without having to account for that time in any short-term way. A fifth of the R&D budget
goes to basic research that has no immediate practicality. In the long term, of course, the
company expects results, and results are what they get. That’s where the 60,000 products
come from. Not all the discoveries are planned, however.
Patsy Sherman, for example, accidentally spilled a test chemical on her tennis shoe
(people dress informally at 3M). She discovered that chemicals and dirt could not remove
or stain the spot. This discovery led to the profitable Scotchgard fabric protector.
Remember those yellow Post-it notes that Art Fry developed for marking his Sunday
hymnal? Art started as an intern at 3M worked his way up to chemical engineer. A
colleague, Dr. Spencer Silver, had developed a low-tack adhesive in the 1960, but the
company had difficulty finding a commercial use for it. In 1977, Fry applied a coating of the
adhesive to scraps of paper, and Post-It Notes were born. They are now one of the five top
selling office products in the U.S.
The company’s tradition of encouraging innovation goes back to one of the
company’s first employees, Richard Drew. 3M’s first product was waterproof sandpaper. In
1923, Drew delivered samples of the sandpaper to local auto body shops for testing. Two-
tone paint finishes on cars had recently been introduced and were an instant sensation.
However, auto manufacturers discovered that they had no effective way to keep one color
masked from the other during spray-painting. Body shops used gummed Kraft paper to
shield painted areas, but removing the tape often stripped off the paint. At one body shop,
a disgusted painter threw the masking tape at Drew along with some colorful language.
When Drew presented the idea to 3M management, they gave Drew the time and financial
backing to experiment on a more effective masking tape. He settled on an adhesive
formula of cabinetmaker’s glue combined with glycerin, which he applied to treated crepe
paper. In 1925, 3M’s chief chemist brought samples of his new tape to the automakers in
Detroit. They immediately placed orders for three carloads.
To give you some idea of how wide the product line is at 3M, look at some products
they are working on. New product lines include fuel cells, thin-film mirrors, and a light fibre
replacement for neon. 3M manufactures electrical and telecommunication products,
medical devices, and office supplies. The company started out as Minnesota Mining and
Manufacturing (3M) company, but it has come a long way from the mining days. Most of its
success is due to intrapreneuring. In 2006, BusinessWeek magazine ranked 3M third in its

ranking of the world’s most innovative companies.
Sources: “Art Fry and the Invention of Post-It Notes,” www.3M.com; Mary Bellis, “Post-It
Notes: Art Fry and Spencer Silver,” www.About.com; Mary Bellis, “Scotch Tape and
Richard Drew,” www.About.com; Beth Shery Sisk, “Engineers Find Solutions that Stick,”
Engineers Week, 18 February 2006; and “3M’s Seven Pillars of Innovation,” Business
Week, 10 May 2006.
ANSWERS TO DISCUSSION QUESTIONS FOR SUPPLEMENTAL CASE 7-1:
1. Why is it important for laboratory people to follow their new product ideas through
production and marketing?
No one else in the company is as committed to that product and willing to fight to
get the attention it deserves. The person who invents a product is able to generate
excitement among others because his or her excitement is so high. Furthermore,
following one’s creation to completion gives one incentive to do it again.
2. How can a multibillion-dollar corporation keep its entrepreneurial spirit alive?

One way is to give in-house entrepreneurial types free reign to create new ideas
and to support the development of those ideas. Another way is to break the larger
firm down into smaller divisions with relative freedom to create new product ideas
and to compete as a separate unit. A combination of the two allows even the
largest firms to remain entrepreneurial.
3. Is it healthy for a corporation to be involved in such widely diverse industries as

Scotch tape and bioelectronic ears? Doesn’t that prevent the corporation from
having expertise in all those areas?
It is healthy to have a diversity of products so that the failure of some will not hurt
the whole firm. Expertise can be maintained in several different areas by creating
specialized divisions like those at 3M.
4. Could 3M survive without intrapreneuring?

3M could survive, but it wouldn’t grow as rapidly as it has not come up with so many
new and helpful products. Intrapreneuring keeps the product line fresh and the
company personnel on their toes. It creates excitement inside and outside the firm.
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BLACK-THROATED DIVER.
Colymbus Arcticus, Linn.

PLATE CCCXLVI. Male, Female, and Young.
One of the most remarkable circumstances relative to this beautiful

bird, which is intermediate between the Red-throated Diver and the
Loon, is the extraordinary extent to which the wanderings of the
young are carried in autumn and winter. It breeds in the remote
regions of the north, from which many of the old birds, it would seem,
do not remove far, while the young, as soon as they are able to
travel, take to wing and disperse, spreading not only over the greater
part of the United States, but beyond their south-western limits. In
the Texas I saw individuals of this species as late as the middle of
April 1837; and I find it enumerated in a list of the birds observed by
my young friend Dr J. K. Townsend on the Columbia River, where
he also met with Columbus glacialis. Its ramblings over a
considerable portion of northern and eastern Europe have equally
been noted, and it has been found breeding in the extreme north of
Scotland.
For many years I knew the young of this bird only by the name
“Imber Diver,” applied by Bewick to that of another species, and now
have pleasure in looking upon a drawing of mine, made about thirty
years ago, with that appellation attached to it. Very few old birds in
full plumage have been procured within the limits of the United
States, and none in as far as I know, farther south than the Capes of
Delaware.
No sooner has the foliage of the trees that border our western waters
begun to drop and float on the gentle current of the fair Ohio, than
the Black-throated Diver makes its appearance there, moving slowly
with the stream. The Mississippi, Missouri, and their tributaries, are
at the same period supplied with these birds. Along our eastern and
southern shores they are seen from the end of autumn until spring.
Whilst in Labrador, I saw a few pairs courting on wing, much in the
manner of the Red-throated Diver; but all our exertions failed to
procure any of the nests, which I therefore think must have been
placed farther inland than those of the Loon or Red-throated Diver. I
observed however, that in their general habits they greatly resemble
those species, for on alighting on the water, they at once immerse
their bills, as if for the purpose of ascertaining whether it yields a
supply of suitable food, and afterwards raise themselves and beat
their wings.
This species has almost as powerful a flight as the Great Northern
Diver or Loon, and I think shoots through the air with even greater
velocity. When flying it moves its wings rapidly and continuously, and
has the neck and feet stretched out to their full length. I well recollect
that while I was standing near the shore of a large inlet in South
Carolina, one of these birds, being shot while passing over my head
at full speed, did not, on account of the impetus, reach the ground
until upwards of twenty yards beyond me. They are equally expert at
diving, and fully as much so in eluding the pursuit of their enemies
when wounded. I saw my friend Mr Harris bring down one from on
wing, on which Napoleon Coste, and William Taylor, Captains of
the Revenue Cutter and Tender of which we had the use, paddled in
pursuit of it in a light canoe; but, although they advanced with all the
address of Indians, they proved unsuccessful, for after following it
both in the Bay of Cayo Island, and in the Bay of Mexico, for nearly
an hour, they were obliged to return without it, having found it
apparently not in the least fatigued, although it had dived sufficiently
often to travel above two miles, shifting its course at each immersion.
It is curious to observe how carefully these birds avoid the danger of
sudden storms or heavy gales. On such occasions, I have seen
Divers at once seek the lee of rocks, islands, or artificial
embankments, where they could not only remain in security, but also
procure their accustomed food. At other times, when striving against
the tempest, they dive headlong from on wing, and are sure to
reappear in the smooth parts which sailors term the trough.
I once caught one of these birds on the Ohio, it having been
incapacitated from diving by having swallowed a large mussel, which
stuck in its throat. It was kept for several days, but refused food of
every kind, exhibited much bad humour, struck with its bill, and died
of inanition. The food of this species consists of fish, aquatic reptiles,
testaceous mollusca, and all sorts of small crustaceous animals. Its
flesh resembles that of the Loon, and is equally unfit to be eaten.
The eggs, which are sometimes two, more frequently three, average
three inches in length, by two in their greatest breadth, which is
about a third of the whole length distant from the extremity. Their
form is that of the Red-throated Diver, which however they exceed in
size. The shell is rather thick, the surface roughish, the ground
colour chocolate tinged with olive, sparingly spotted at the larger end
with very dark umber and black, and sprinkled all over with very
small dots of the same colour.
I have represented an adult male, a female, and a young bird.
Colymbus arcticus, Linn. Syst. Nat. vol. i. p. 221.—Lath. Ind. Ornith. vol. ii.
p. 800.—Ch. Bonaparte, Synopsis of Birds of United States, p. 420.
Colymbus arcticus, Black-throated Diver, Richards. and Swains. Fauna
Boreali-Americana, vol. ii. p. 475.
Black-throated Diver, Nuttall, Manual, vol. ii.
Adult Male. Plate CCCXLVI. Fig. 1.

Bill as long as the head, straight, stout, higher than broad at the
base, much compressed toward the end, and tapering to a point.
Upper mandible with the dorsal line descending and considerably
convex toward the end, the ridge convex, narrowed toward the point,
the sides convex beyond the nostrils, the edges involute for half their
length in the middle, direct at the base and toward the end, the tip
narrow and sharpish. Nasal groove rather long and narrowed;
nostrils sub-basal, linear, direct, pervious. Lower mandible with the
angle extremely narrow, and very long, the dorsal line ascending and
very slightly convex, the ridge convex and narrow, the edges sharp
and involute, the tip attenuated.
Head of moderate size, oblong, narrowed before. Neck rather long
and thick. Eyes of moderate size. Body elongated, much depressed,
of an elliptical form viewed from above. Wings small. Feet short,
rather large, placed very far back; tibia almost entirely concealed;
tarsus short, exceedingly compressed, sharp-edged before and
behind, covered all over with reticulated angular scales, hind toe
extremely small, externally marginate, connected with the second for
half its length by a membrane, which extends, narrowing, to the end;
the anterior toes connected by articulated membranes, the fourth or
outer longest, the third a little shorter, the second considerably
shorter than the third; all covered above with numerous narrow
scutella; the second toe with a free two-lobed membrane, the claws
very small, depressed, blunt.
Plumage short and dense, of the head and neck very short, soft and
blended; of the lower parts short, blended, stiffish, considerably
glossed; of the upper compact, glossy; the feathers on the lower part
of the sides of the neck much incurved, oblong with the terminal
barbs stiff; those of the fore part of the back and the scapulars
straight, oblong, abrupt. Wings proportionally very small and narrow,
curved; primaries strong, tapering, the first longest, the second
slightly shorter, the rest rapidly graduated; secondaries very short,
broad, and rounded. Tail extremely short, rounded, of eighteen
feathers.
Bill black. Iris deep bright red. Feet greyish-blue, their inner sides
tinged with yellow; claws black, that of the inner toe yellowish at the
base. The upper part of the head and the hind neck are light grey or
hoary, the fore part and sides of the head darker. The upper parts
are glossy black tinged with green anteriorly, and shaded with brown
behind. On the fore part of the back are two longitudinal bands of
transverse white bars, the feathers being tipped with that colour; the
scapulars, excepting the outer, are marked in the same manner with
transverse rows of rather large square spots. Most of the wing-
coverts have two roundish spots of white near the end. The quills are
blackish-brown, tinged with grey externally, paler on the inner webs;
the tail also blackish-brown. The fore neck, to the length of six and a
half inches, is purplish-black, ending angularly below, and with a
transverse interrupted band of linear white spots near the upper part;
beyond which the sides of the neck are blackish-brown, with several
longitudinal white streaks, formed by the edges of the feathers; on
the lower part of the neck a broad space is occupied by these
longitudinal, dusky, and white streaks the former of which gradually
become narrower. The lower parts are pure white, excepting a
longitudinal band on the sides under the wing, which is dusky.
Length to end of tail 29 inches, to end of wings 27 1/2, to end of
claws 33; extent of wings 39 1/2; wing from flexure 12 3/4; tail 2 3/4;
bill along the ridge 2 5 1/2/12, along the edge of lower mandible
3 4 1/2/12; tarsus 3 1/12; hind toe 8/12, its claw 2/12; second toe 3 2/12,
1/2 1/2
its claw 5 /12; third toe 3 8/12, its claw 5 5 /12; fourth toe 4 1/4, its
claw 4 1/2/12.
Adult Female. Plate CCCXLVI. Fig. 2.

The Female is smaller than the male, but is similarly coloured.
Young in Winter. Plate CCCXLVI. Fig. 3.
The texture of the plumage is less dense, the feathers on the neck
being more downy, and those of the back oblong and rounded. The
bill is light bluish-grey, dusky along the ridge; the iris brown; the feet
more dusky. The upper part of the head and the hind neck are dark
greyish-brown; the sides of the head greyish-white, minutely
streaked with brown. The upper parts have a reticulated or scaly
appearance, the feathers being brownish-black, with broad bluish-
grey margins; the rump dull brownish-grey. The primaries and their
coverts are brownish-black, the secondaries and tail-feathers dusky,
margined with grey. The fore part of the neck is greyish-white,
minutely and faintly dotted with brown, its sides below streaked with
the same; the lower parts, including the under surface of the wing,
pure white; the sides of the body and rump, with part of the lower
tail-coverts, dusky, edged with bluish-grey.
When in their first downy plumage, the young are of a uniform
brownish-black colour.
SMEW OR WHITE NUN.
Mergus Albellus, Linn.

PLATE CCCXLVIL. Male and Female.
The Smew is a bird of extremely rare occurrence in the United

States, insomuch that it must be considered merely as a transient or
accidental visitor. Indeed I have felt strong misgivings on reading
Wilson’s article on this species, and cannot but think that he is
mistaken when he states that it “is much more common on the coast
of New England than farther south,” and again “In the ponds of New
England, and some of the lakes in the State of New York, where the
Smew is frequently observed—.” Now, although I have made diligent
inquiry, not only in New England, but in every part of our country
where I thought it likely that the Smew might occur, I have not met
with any person well acquainted with birds of this family, who has
seen it. Wilson, in short, was in all probability misinformed, and it is
my opinion that his figure was made from a stuffed European
specimen which was then in Peale’s Museum in Philadelphia, and
that he had taken the Buffel-headed Duck, seen at a distance, for
this species, as I am aware has been the case with other individuals.
The only specimen procured by me was shot by myself on Lake
Barataria, not far from New Orleans, in the winter of 1819. It was an
adult female in fine plumage. How it had wandered so far south is an
enigma to me; but having found it, and made a drawing of it on the
spot, I have taken the liberty to add one of the other sex from an
equally fine specimen. After all, the Smew can scarcely be
considered as belonging to the American Fauna, any more than our
Fork-tailed Hawk can with propriety be called a denizen of England;
and in this I am supported by all the great navigators of our Arctic
Seas, such as Ross, Parry, and Franklin, none of whom, nor any
of their companions, ever met with a single individual of this beautiful
bird.
Mergus Albellus, Linn. Syst. Nat. vol. i. p. 209.—Lath. Ind. Ornith. vol. ii. p.
831.—Ch. Bonaparte, Synopsis of Birds of United States, p. 398.
Smew or White Nun, Mergus Albellus, Wils. Amer. Ornith. vol. viii. p. 126,
pl. 71, fig. 4. Male.
The Smew, or White Nun, Nuttall, Manual, vol. ii. p. 467.
Adult Male Plate CCCXLVII. Fig. 1.

Bill rather shorter than the head, straight, rather slender, a little
higher than broad at the base, tapering, somewhat cylindrical toward
the end. Upper mandible with the dorsal outline sloping gently and
slightly concave to the middle, then straight, at the tip declined, the
ridge rather broad and flat at the base, then convex, the sides
sloping at the base, convex toward the end, the edges serrate
beneath, with about forty slightly reversed, compressed, tapering,
tooth-like lamellæ, the unguis elliptical, much curved. Nasal groove
oblong, sub-basal, filled by a soft membrane; nostrils oblong,
submedial, direct, pervious. Lower mandible with the angle very
narrow and extended to the obovate, very convex unguis, the sides
rounded, with a long groove, the edges with about sixty
perpendicular sharp lamellæ.
Head of moderate size, oblong, compressed. Neck of moderate
length. Body full and depressed. Feet placed far behind, extremely
short; tibia bare for a quarter of an inch; tarsus extremely short,
much compressed, anteriorly covered with a series of very small
scutella, and another row on the lower half externally, the sides
reticulate. Hind toe very small, with an inferior free membrane;
anterior toes double the length of the tarsus; the second shorter than
the fourth, which is nearly as long as the third; all connected by
reticulated webs, of which the outer is deeply emarginate. Claws
short, considerably curved, compressed, acute, that of the middle
toe with a thin inner edge.
Plumage full, soft, and blended; feathers of the head and upper part
of the hind neck very slender, and elongated along the median line
into a narrow decurved crest; those of the shoulders obovate and
abrupt, of the rest of the upper parts ovate, of the lower elliptical.
Wings very short, narrow, curved, and pointed; primaries narrow,
tapering, the first scarcely longer than the second, the rest rapidly
graduated; secondaries short, narrow, rounded, the inner tapering to
an obtuse point. Tail short, graduated, of sixteen rather narrow,
tapering feathers.
Bill dark greyish-blue. Iris bright red. Feet livid blue, claws dusky.
The general colour of the plumage is pure white; a short band on
each side of the hind neck bordering the crest, duck-green; a broad
patch on the lore and below the eye, a narrow band across the lower
part of the hind neck, formed by single bars near the tips of the
feathers, the middle of the back in its whole length, a short
transverse bar under the fore edge of the wing, the anterior margin
of that organ to beyond the carpal joint, the outer edges of the
scapulars, the primary coverts, the secondary coverts, and the outer
secondary quills, excepting the tips of both, deep black. The quills
are also black, but of a less deep tint; the hind part of the back
becomes tinged with grey, and the rump and tail-feathers are dusky
grey. The sides of the body and rump are white, finely undulated with
blackish-grey.
Length to end of tail 17 1/2 inches, to end of claws 18 1/4, to end of
1/2
wings 15 1/2; extent of wings 27; bill along the ridge 1 3 /12, along
1/
the edge of lower mandible 1 7 2/12; wing from flexure 7 3/4; tail 3 1/2;
1/
tarsus 1 1 /12; first toe 1/2, its claw 2/12; second toe 1 1/2, its claw
2
4/ ,
12third toe 1 11/12, its claw 4 1/2/12; fourth toe 1 10/12, its claw 5/12.
Weight 1 lb. 8 oz.
Adult Female. Plate CCCXLVII. Fig. 2.
The Female is much smaller. The feathers of the hind part of the
head and neck are also elongated so as to form a crest. The bill, iris,
and feet, are coloured as in the male. All the lower parts are white,
excepting a broad band of light grey across the middle of the neck,
and a narrow portion of the sides, which are of a deeper tint. There is
a patch of brownish-black on the lore and beneath the eye; the upper
part of the head and half of the hind neck, are light reddish-brown;
the rest of the hind neck, and all the upper parts, bluish-grey, darker
behind, and in the middle of the back approaching to black. The
wings as in the male, that is black, with a large patch of white, and
two narrow transverse bands of the same; the tail dusky grey.
Length to end of tail 15 1/4 inches, to end of claws 16 1/2, to end of
wings 14 1/2; extent of wings 25. Weight 1 lb. 4 oz.
GADWALL DUCK.
Anas strepera, Linn.

PLATE CCCXLVIII. Male and Female.
I have met with this species along the whole of our Atlantic coast,
from Eastport in Maine to Texas. It is, however, more abundant in the
interior than in most of our maritime districts, and is particularly so on
the tributaries of the Ohio, Missouri, and Mississippi. In the early part
of autumn and late in spring many are found on the margins of our
great lakes. Yet the Gadwall has been represented as not plentiful in
the United States, probably on account of its being generally
dispersed, and not congregated in particular districts.
The Creoles of Louisiana name it “Violon,” on account of the
whistling sound of its wings. It arrives in the neighbourhood of New
Orleans and the mouths of the Mississippi along with the Widgeon,
and is fond of the company of the Red-head, to which it is about
equal as an article of food. The Gadwalls are usually seen in small
flocks, and during winter resort to the larger lakes and the pools in
the interior of the great marshes, adjoining the waters of the Gulf. In
that part of the country they feed on small fish, insects, and aquatic
grasses. Fewer of them are found in Massachusetts and the State of
New York than elsewhere, and this probably on account of these
districts being more elevated and less marshy than those farther
south. My friend Dr Bachman informs me that they are rather
plentiful in South Carolina, where they are considered good eating,
and where they arrive in the beginning of October, but are more
frequently met with at that season, and in early spring, than during
winter, when a single individual may sometimes be seen in a flock of
other ducks.
While we were in the Texas, in the latter part of April and the
beginning of May, we found the Gadwall quite abundant on all the
inland ponds and streams, as well as on the brackish pools and
inlets of the islands and shores of Galveston Bay. Many of them had
paired and separated from the other ducks; and I was assured that
this species breeds there, as does the Dusky Duck, the Mallard, the
Blue-winged Teal, the Widgeon, and the Shoveller, the young of all
these species being plentiful in the end of June and beginning of
July. I was satisfied as to the truth of the repeated assurances I had
received on this subject, by observing the manners of individuals of
all these species before my departure from that country. After a
continuance of rainy weather, Gadwalls are found in great numbers
on the vast prairies of Oppelousas and Attacapas, where I have
been told they continue until very late in spring, and some remain to
breed.
This species dives well on occasion, especially on being wounded.
At the appearance of danger, it rises on wing—whether from the
ground or from the water—at a single spring, in the manner of the
Mallard, and, like it also, ascends almost perpendicularly for several
yards, after which it moves off in a direct course with great celerity. I
have never seen it dive on seeing the flash of the gun; but when
approached it always swims to the opposite part of the pond, and,
when the danger increases, flies off. On being wounded, it
sometimes by diving makes its escape among the grass, where it
squats and remains concealed. It walks with ease, and prettily, often
making incursions upon the land, when the ponds are not
surrounded by trees, for the purpose of searching for food. It nibbles
the tender shoots and blades of grasses with apparent pleasure, and
will feed on beech-nuts, acorns, and seeds of all kinds of gramineæ,
as well as on tadpoles, small fishes, and leeches. After rain it alights
in the corn-fields, like the Mallard, and picks up the scattered grains
of maize. The common notes or cry of the female have a
considerable resemblance to those of the female Mallard; but the cry
of the male is weaker as in that species.
It is by no means shy in the Western Country, where I have often
found it associating with other species, which would leave the pond
before it. Near the sea, however, it is much more wary, and this no
doubt on account of the greater number of persons who there follow
shooting as a regular and profitable employment. From the following
note of my friend Dr Bachman, you may judge how easily this fine
species might be domesticated.
“In the year 1812 I saw in Dutchess County, in the State of New
York, at the house of a miller, a fine flock of ducks, to the number of
at least thirty, which, from their peculiar appearance, struck me as
differing from any I had before seen among the different varieties of
the tame Duck. On inquiry, I was informed that three years before, a
pair of these ducks had been captured in the mill pond, whether in a
trap, or by being wounded, I cannot recollect. They were kept in the
poultry-yard, and, it was said, were easily tamed. One joint of the
wing was taken off, to prevent their flying away. In the following
spring they were suffered to go into the pond, and they returned daily
to the house to be fed. They built their nest on the edge of the pond,
and reared a large brood. The young were perfectly reconciled to
domestication, and made no attempts, even at the migratory season,
to fly away, although their wings were perfect. In the following
season they produced large broods. The family of the miller used
them occasionally as food, and considered them equal in flavour to
the common duck, and more easily raised. The old males were more
beautiful than any that I have examined since; and as yet
domestication had produced no variety in their plumage.”
The migration of this species extends to the Fur Countries, where it
is said to breed. The description of a male killed on the
Saskatchewan River, on the 22d of May 1827, is given in the Fauna
Boreali-Americana; and I have a fine male procured by Dr
Townsend on the Columbia River.
Anas strepera, Linn. Syst. Nat. vol. i. p. 200.—Lath. Ind. Ornith. vol. ii. p.
859.—Ch. Bonaparte, Synopsis of Birds of United States, p. 383.
Gadwall, Anas strepera, Wils. Amer. Ornith. vol. viii. p. 120, pl. 71, fig. 1.—
Richards. and Swains. Fauna Bor.-Amer. vol. ii. p. 440.
Gadwall or Grey, Nuttall, Manual, vol. ii. p. 383.
Adult Male. Plate CCCXLVIII. Fig. 1.

Bill nearly as long as the head, deeper than broad at the base,
depressed towards the end, the sides parallel, the tip rounded.
Upper mandible with the frontal angles short and obtuse, the dorsal
line at first sloping, then slightly concave and direct, the ridge broad
and flat at the base, then broadly convex, the edges soft, with about
fifty internal lamellæ, the unguis roundish, curved abruptly at the
end. Nostrils sub-basal, lateral, rather small, oblong, pervious. Lower
mandible flattened, its angle very long and narrow, the dorsal line
very short, slightly convex, the edges soft, with about sixty lamellæ.
Head of moderate size, oblong, compressed. Neck rather long,
slender. Body elongated, slightly depressed. Feet very short; tibia
bare for about a quarter of an inch; tarsus very short, compressed,
anteriorly with two series of scutella, the outer shorter, the rest
covered with reticulated angular scales; toes obliquely scutellate
above; first very small, free, with a narrow membrane beneath; third
longest, fourth considerably shorter, second shorter than fourth, their
connecting webs entire, on the edge crenate; the second or inner toe
with a membranous margin. Claws small, slightly arched,
compressed, rather acute, the hind one very small and more curved,
that of the middle toe with an inner sharp edge.
Plumage dense, soft, blended. Feathers of the head short, of the
occiput and nape a little elongated, of the lower parts glossy with the
extremities of the filaments stiffish. Wings rather long, little curved,
pointed; the first quill longest, the rest rapidly graduated; secondaries
very broad, but pointed, the inner much elongated, and tapering to a
point. The tips of the filaments of the outer web of the first primary
are separated and curved a little forwards. Tail short, rounded, of
sixteen strong pointed feathers, of which the middle pair project
considerably.
Bill bluish-black. Iris reddish hazel. Feet dull orange-yellow, claws
brownish-black, webs dusky. Head light yellowish-red, the upper part
and nape much darker and barred with dusky; the rest dotted with
the same. The lower part of the neck, the sides of the body, the fore
part of the back, and the outer scapulars, undulated with dusky, and
yellowish-white, the bands much larger and semicircular on the fore
part of the neck and breast; the latter white, the abdomen faintly and
minutely undulated with brownish-grey; the elongated scapulars
brownish-grey, broadly margined with brownish-red; the hind part of
the back brownish-black; the rump all round, and the upper and
lower tail-coverts, bluish-black. The anterior smaller wing-coverts are
light grey, undulated with dusky, the middle coverts of a deep rich
chestnut-red; primary coverts brownish-grey, outer secondary
coverts darker and tinged with chestnut, the rest black, excepting the
inner, which are grey. Primaries and inner elongated secondaries
brownish-grey, of which colour also are the inner webs of the rest,
part of the outer webs of five of the outer black, and their terminal
margins white, of which colour are the whole outer webs of the three
next to the inner elongated quills. Tail brownish-grey, the feathers
margined with paler.
Length to end of tail 21 3/4 inches, to end of wings 19, to end of
claws 23 1/4; extent of wings 35; bill along the ridge 1 3/4, along the
edge of lower mandible 1 7/8; wing from flexure 11; tail 4 3/8; tarsus
1 1/2; hind toe and claw 1/2; second toe 1 5/8, its claw 4/12; third toe
1 7/8, its claw 4/12; outer toe 1 7 1/2/12, its claw 2/12. Weight 1 lb. 10 oz.
Adult Female. Plate CCCXLVIII. Fig. 2.

The female is considerably smaller. Bill dusky along the ridge, dull
yellowish-orange on the sides. Iris hazel. Feet of a fainter tint than in
the male. Upper part of head brownish-black, the feathers edged
with light reddish-brown; a streak over the eye, the cheeks, the
upper part of the neck all round, light yellowish-red tinged with grey,
and marked with small longitudinal dusky streaks, which are fainter
on the throat, that part being greyish-white; the rest of the neck, the
sides, all the upper parts and the lower rump feathers brownish-
black broadly margined with yellowish-red. Wing-coverts brownish-
grey, edged with paler; the wing otherwise as in the male, but the
speculum fainter. Tail-feathers, and their coverts dusky, laterally
obliquely indented with pale brownish-red, and margined with
reddish-white.
Length to end of tail 19 1/4 inches, to end of wings 18 3/4, to end of
claws 19 1/2; extent of wings 31; wing from flexure 8 1/4; tail 3 3/4;
tarsus 1 4 1/2/12; middle toe 1 9 1/2/12, its claw 4/12.
In a male, the roof of the mouth is deeply concave, with a prominent

median ridge, and oblique grooves toward the end. The tongue is 1
inch 10 twelfths long, fleshy, with a deep longitudinal groove, two
lateral series of filaments, and a thin broadly rounded tip, as in other
ducks. The œsophagus, a, b, is 10 1/2 inches long, 5 twelfths in
diameter for about four inches, then enlarged to 10 twelfths, and
again contracted as it enters the thorax. The proventriculus, b b, is 1
inch and two twelfths long, its greatest diameter 8 twelfths. The
stomach, c d e, is a very large and powerful gizzard, of an elliptical
form, compressed, 1 inch and 9 twelfths long, 2 inches in its greatest
breadth, or in the direction of the lateral muscles, of which the right,
c, is 10 twelfths thick, the left, d, 9 twelfths. The epithelium is thick
and rugous; much thickened and forming two roundish, flat or slightly
concave grinding surfaces, opposite the muscles. The intestine, e f
g, is 6 feet 10 inches long, wide, its diameter for 2 feet being 4 1/2
twelfths, towards the rectum enlarging to 6 twelfths. It forms first a
very long duodenal curve, c e f g, and is then convoluted or coiled in
numerous folds. The rectum is 5 1/4 inches long; the cœca 11 inches,
their greatest diameter 6 twelfths, for 2 inches at the commencement
2 twelfths, towards the end 2 1/2 twelfths, their extremity rounded.
The trachea, h, is 7 1/2 inches long; its diameter at the upper part 4
twelfths, gradually diminishing to 3 1/2 twelfths; it then enlarges to 5
twelfths, and contracts to 3 1/2 twelfths at the commencement of the
dilatation of the inferior larynx, which is extremely similar to that of
the Widgeon, but larger; there being an enlargement, i, formed by a
number of the lower rings united, and to the left side a rounded bony
tympanum j; the greatest transverse diameter of this part, from i to j,
is 1 inch 1 twelfth. The bronchi, k k, are of moderate size, covered
with a dense layer of adipose matter.
LEAST WATER RAIL.
Rallus jamaicensis, Gmel.

PLATE CCCXLIX. Male and Young.
My knowledge of this pretty little species is altogether derived from

Titian Peale, Esq., of Philadelphia, by whom, in October 1836, I
was favoured with the following letter:—
“I herewith send you the ‘Little Rail’ of which we were speaking
yesterday, and the letter of Dr Rowan which relates to it. The young
died soon after I received them, but the old one lived with me until
the 26th of July (four days after its capture), evincing considerable
anxiety for the young, as long as they lived. Both young and old
partook sparingly of Indian meal and water, or bread and water, and
soon became quite at home, and probably might have been
domesticated, had they been properly accommodated.
“The most remarkable part of the history of this individual is, that
after its death we should have discovered in dissection that it was a
male, rendering it singularly curious that he should have suffered
himself to be captured by hand while in defence of the young brood.
“There is now in the Museum a specimen of this species, which has
been in the collection for about thirty years, said to have been caught
in the vicinity of the city. It stands labelled ‘Little Rail, Rallus minutus,
Turton’s Linn;’ but the authenticity of the specimen has always been
disputed by Bonaparte and others, because none else had been
found; and the author just named expressed a belief that it was an
immature specimen of Rallus (Crex) Porzana of Europe.
“I regret that I should have mislaid the measurements of the
specimen when recent, if any were taken, and cannot lay my hands
on them, or any thing more than the above notes. Respectfully
yours, &c.
Titian R. Peale.”
Inclosed in Mr Peale’s letter was the following note from Dr Rowan
“to the Messrs Peales.”
“On Saturday last I wrote to you of the Rail Bird breeding near this
place. I then described one that I caught last summer, which was
unlike the Rail in the fall season, and I presumed that all in the wet
ground were the same, but this day my men mowing around the
pond started up two of the usual kind. The hen flew a few rods, and
then flew back to her young in an instant, when they caught her
together with her four young, which I herewith send you. Many more
can be caught. I have seen them in our meadow every month of the
year, but they never make a great noise except when very fat on the
wild oat’s seed. From the above you will conclude that they do not
migrate to the south, but breed here. Respectfully,
Thomas Rowan.”
Rallus jamaicensis, Brisson Sup. p. 140.—Gmel. Syst. Nat. vol. ii. p. 718.—
Lath. Ind. Ornith. vol. ii. p. 761.
Adult Male. Plate CCCXLIX. Fig. 1.

Bill shorter than the head, rather stout, compressed, tapering. Upper
mandible with the dorsal line nearly straight, being slightly convex
toward the end, the ridge narrow and convex in its whole length, the
sides convex towards the end, the edges sharp, the tip rather acute.

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Understanding Canadian Business

Canadian 8th Edition Nickels Solutions

BRIEF CHAPTER OUTLINE AND LEARNING GOALS

Opening Profile: Getting To Know Marlene Ross of Marlene Ross Design

I THE AGE OF THE ENTREPRENEUR

A. Well-known Canadian Entrepreneurs

I WHY PEOPLE TAKE THE ENTREPRENEURIAL CHALLENGE

A. What Does it Take to be an Entrepreneur?

II ENCOURAGING ENTREPRENEURSHIP: WHAT GOVERNMENT CAN DO

I GETTING STARTED IN SMALL BUSINESS

A. Small-Business Success and Failure

I LEARNING ABOUT SMALL-BUSINESS OPERATIONS

A. Learn from Others

I MANAGING A SMALL BUSINESS

I GOING INTERNATIONAL: SMALL-BUSINESS PROSPECTS

Fig. 7.1 Potential Home-Based Businesses

EXERCISES AND BOXED FEATURES FROM TEXT

Spotlight on Small Business, p. 203

Making Ethical Decisions, p. 217

End of Chapter Content

SUPPLEMENTARY EXERCISES IN THIS MANUAL

CRITICIAL THINKING EXERCISES

Supplemental Case 7-1

Entrepreneurship is accepting the challenge of starting and

Entrepreneurial ventures differ from small businesses in four ways:

A. Well-Known Canadian Entrepreneurs

Entrepreneurs have played a major role in developing the

1965 – Jim Pattison – Jim Pattison Group

Lecture Links 7-1 and

II WHY PEOPLE TAKE THE ENTREPRENEURIAL

Some of the many factors that have contributed to starting a

1. new ideas, process, or product;

A. What Does It Take to Be an Entrepreneur?

A list of entrepreneurial attributes are as follows:

Entrepreneurs don’t always look for what customers need – they

B. Turning Your Passions and Problems into Opportunities

Statistics Canada’s Labour Force Survey reports that there were

industries have the lowest level (9 percent).

The INCREASE of women entrepreneurs is due to some of the

An entrepreneurial team is a group of experienced people from

E. Micropreneurs and Home-based Businesses

Micro-enterprises are defined as a small business having fewer

Micropreneurs small-business owners with fewer than five

Micro-enterprises represent 55 percent of all employer businesses

Some of the main reasons for micropreneurs are:

Some of the major challenges in setting up a home-based

1. getting new customers;

Many Web-based businesses have been created as a result of the

There are some real e-commerce challenges in Canada. Despite

G. Entrepreneurship within Firms

Intrapreneurs are creative people who work as entrepreneurs

III ENCOURAGING ENTREPRENEURSHIP: WHAT

The federal and provincial governments provide many services to

The different levels of government provide many services to help

government services, programs, and regulatory requirements for

Incubators are centres that provide hands-on management

Incubators help companies survive because they provide

The goal of an incubator is not only to ensure that the small