National University and Sierra College Small Business Development Center (SBDC) have jointly developed a program whereby small businesses become clients of the SBDC and are screened and selected as "living case studies" for National University's practicum for bachelor's and master's of business administration candidates. The new course replaces a capstone course based on a fictitious business and various computer simulations. Since July 1991, 10 living case studies classes have been conducted, and 118 students have completed the course. The objectives established for the course are as follows: conduct a strategic analysis of an organization, evaluate various management strategies in the development of a business plan, apply principles of interpersonal and group relations by giving and receiving feedback on individual and group behavior, and apply principles of communication and management consulting in the preparation and presentation of written and oral proposals to a client. Students keep individual journals and participate in peer evaluations of each member of their consulting team; instructors serve as resource consultants and reviewers. Student, client, and instructor reaction to the new living case study course has been quite positive. (MN)