Small Business Management

I.     Course Prefix/Number: MGT 160

       Course Name: Small Business Management

       Credits: 3 (3 lecture; 0 lab)

II.    Prerequisite


III.   Course (Catalog) Description

Course presents the principles and problems of organizing a small business.  Content includes an analysis of entrepreneurial qualifications and skills; capital resources and requirements; forms of ownership; and financial analysis and planning.  Focus is on tax and legal considerations, staffing and learning to identify profit opportunities using market analysis; bringing products to market through effective advertising, personal selling and distribution methods and practices.  Includes franchises, availability of government assistance through the Small Business Administration (SBA), evaluation of an existing business for purchase and special opportunities granted to small businesses in selling to government agencies.

IV.   Learning Objectives

The major objectives of this course are to acquaint prospective or existing owners and managers of small businesses with the basic principles of business management; to introduce the tools needed for effective planning, organization, leadership and control; and to develop skills in analyzing management problems and solving them.

  1. Student awareness of the importance of small businesses in the American economy.
  2. Student ability to identify those aspects of management that are uniquely important to small companies.
  3. Student understanding of the economic and social environment within which the small business functions--and which both aids and restricts freedom of entrepreneurial decision making.
  4. To afford the student practice in decision making skills, under the same conditions faced by the small business person--that is, in an environment of uncertainty and incomplete data.
  5. Student ability to develop an operating plan to run a small business.
  6. Student understanding of the role of the S.B.A. in small business.
  7. Student in knowledge and skills in employing effective marketing techniques.
  8. Student ability to identify sources of funds and develop on operating budget.
  9. Student ability to evaluate an existing business and determine a "fair market" price.
  10. Student understanding of the undesirable personal characteristics of an effective entrepreneur.

V.    Academic Integrity and Student Conduct

Students and employees at Oakton Community College are required to demonstrate academic integrity and follow Oakton's Code of Academic Conduct. This code prohibits:

• cheating,
• plagiarism (turning in work not written by you, or lacking proper citation),
• falsification and fabrication (lying or distorting the truth),
• helping others to cheat,
• unauthorized changes on official documents,
• pretending to be someone else or having someone else pretend to be you,
• making or accepting bribes, special favors, or threats, and
• any other behavior that violates academic integrity.

There are serious consequences to violations of the academic integrity policy. Oakton's policies and procedures provide students a fair hearing if a complaint is made against you. If you are found to have violated the policy, the minimum penalty is failure on the assignment and, a disciplinary record will be established and kept on file in the office of the Vice President for Student Affairs for a period of 3 years.

Please review the Code of Academic Conduct and the Code of Student Conduct, both located online at

VI.   Sequence of Topics

  1. The Role of Small Business in the American Economy
    1. Scope and Trend of Small Businesses
    2. Values of Small Business
    3. Future of Small Business
  2. Management and Philosophy for the Entrepreneur
    1. Business Objectives
    2. Business Ethics
    3. Future Changes in the American Economy
  3. The General Functions of Management
    1. Broad Applicability of Managerial Functions
    2. Description of Managerial Functions
    3. The Importance of Management
  4. Factors in Small Business Failure and Success
    1. Business Mortality
    2. Causes of Business Failure
    3. Management Philosophy and Business Success
  5. Legal Problems and Procedures in Initiating a Small Business
    1. Possible Forms of Business Organization
    2. The Sole Proprietorship
    3. The General Partnership
    4. The Corporation
    5. Legal Steps to Launch a Sole Proprietorship, Partnership, and Corporation
  6. Procuring Initial Capital and Credit
    1. Estimating Starting Venture Capital Needs of the Small Firm
    2. Sources of Venture Capital
    3. Credit and Credit Relationships
  7. Setting Up and Staffing the Organization
    1. Basic Factors in Structuring a Business Organization
    2. Staffing and Organization
    3. Effective Use of Directors in Small Corporations
  8. Business Records, Reports and Financial Statements
    1. Records and Record Keeping
    2. Analysis and Interpretation of Financial Statements
    3. Use of Reports in Management Control
  9. Budgeting and Expense Control
    1. Nature and Functions of a Budget
    2. Basic Factors in Budgeting Control
    3. Setting Cost and Performance Standards
    4. Preparing and Revising a Budget
  10. Employee Relations
    1. Importance of Employees to the Small Firm
    2. Difference in Employee Relations in the Small Firm
    3. Achieving and Maintaining High Levels of Productivity
  11. Operating a Small Manufacturing Business
    1. Production and Planning Control
    2. Procurement of Raw Materials
    3. Inventory Control
  12. Marketing Techniques and the Marketing Concept
    1. Marketing Concept Explained
    2. Market Analysis and Forecasting
    3. Selecting the Right Merchandise or Services to Offer
    4. Pricing for Profit
    5. Effective Advertising, Personal Selling and Sales Promotion
    6. Facilities, Location and Distribution
  13. Assistance for the Small Business
    1. Small Business Administration (S.B.A.)
    2. Service Corps of Retired Executives (S.C.O.R.E.)
    3. National Trade Associations
    4. Tax and Legal Consultants
    5. Management Consultants
    6. The Small Business Institute (S.B.I.)
    7. The 406 Program
    8. Small Business Development Centers (S.B.D.C.s)
  14. How to Sell a Small Business
    1. Determining the Value of your Small Business
    2. Locating Prospective Purchasers
    3. Negotiating the Sale

VII.  Methods of Instruction

Instructors will utilize a variety of learning activities such as group work, oral presentations, quizzes/tests, assignments, discussion, and lecture. Course content and assignments will encourage critical thinking and the use of information resources and technology. 

Course may be taught as face-to-face, hybrid or online course.

VIII. Course Practices Required

Course content and assignments encourage critical thinking and use of information resources and technology.  Students will be expected to read and write English at the college level, work in groups as well as complete assignments requiring the use of e-mail, word processing, the World Wide Web, and information resources.

Course may be taught as face-to-face, hybrid or online course.

IX.   Instructional Materials

Note: Current textbook information for each course and section is available on Oakton's Schedule of Classes.

Text:  Small Business Management, Megginson and Byrid , 4th Ed, 0-07-249781-5

X.    Methods of Evaluating Student Progress

Students will be evaluated based on class participation and attendance, written and verbal performance on case analysis and simulation game, a mid-term and final written examinations.

XI.   Other Course Information

Use of Computers and Information Technology:
When you apply at Oakton as a credit student, you are automatically assigned a computer network account and email address.  While you are registered for classes and any financial obligations to the College are fulfilled, you may use this account to log into workstations in any of the open or classroom computer labs.  Your account gives you access to the wide variety of application programs available on Oakton's Network and on-campus access to the Internet.

Rules for computer use are posted in computer labs as well as available in writing in each of the labs. Lab assistants and tutors are available to assist you in the lab regarding software and hardware questions.

Users of the College’s information technology facilities and resources, including hardware, software, networks, and computer accounts, are expected to use computer resources responsibly and appropriately, respecting the rights of other information technology users and respecting all contractual and license agreements.

Under no circumstances is any of the software used at Oakton to be copied. Copying software is in violation of Federal law and College policies. Suspected violations will be vigorously investigated and, if warranted, appropriate penalties applied. Specifically, you do not have the right (1) to make copies of software for yourself or others, (2) to receive and use unauthorized copies of software, or (3) copy all or parts of a program written by someone else.

College Policy on the Observance of Religious Holidays:
Oakton Community College recognizes the broad diversity of religious beliefs of its constituencies. The College has embraced a practice of shared responsibility in the event a religious observance interferes with class work or assignments. Students who inform instructors well in advance of an intended absence for a major religious observance will not be penalized. The instructor will make reasonable accommodations for students, which may include providing a make up test, altering assignment dates, permitting a student to attend another section of the same course for a class period or similar remedies. Instructors are not responsible for teaching material again.

If you have a documented learning, psychological, or physical disability you may be entitled to reasonable academic accommodations or services. To request accommodations or services, contact the Access and Disability Resource Center at the Des Plaines or Skokie campus. All students are expected to fulfill essential course requirements. The College will not waive any essential skill or requirement of a course or degree program.

Oakton Community College is committed to maintaining a campus environment emphasizing the dignity and worth of all members of the community, and complies with all federal and state Title IX requirements.

Resources and support for
  • pregnancy-related and parenting accommodations; and
  • victims of sexual misconduct
can be found at

Resources and support for LGBTQ+ students can be found at

Electronic video and/or audio recording is not permitted during class unless the student obtains written permission from the instructor. In cases where recordings are allowed, such content is restricted to personal use only. Any distribution of such recordings is strictly prohibited. Personal use is defined as use by an individual student for the purpose of studying or completing course assignments.

For students who have been approved for audio and/or video recording of lectures and other classroom activities as a reasonable accommodation by Oakton’s Access Disabilities Resource Center (ADRC), applicable federal law requires instructors to permit those recordings. Such recordings are also limited to personal use. Any distribution of such recordings is strictly prohibited.

Violation of this policy will result in disciplinary action through the Code of Student Conduct.