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more likely to fail than male-owned businesses.

Matilda would like to open an ice cream and sweet treats store but she will need a loan to do so. She is concerned she may not be given a loan and researches the subject, discovering that in 2017, the SBA data showed that women-owned businesses are

soft-drink

Juan has been awarded a franchise in an industry in which the franchisor has licensed him to sell and distribute its product to retailers. Juan is most likely a franchisee in the ___ industry.

Macy because the SBA's primary financial function is to guarantee loans.

Marilyn and Macy are arguing about the primary financial function of the Small Business Administration. Marilyn argues that the SBA's primary function is to lend money. Macy argues that its primary function is to guarantee loans. Who is correct?

small-business investment company.

Milkshake Lending Company is a small privately owned firm providing venture capital to small businesses. This company could also be referred to as a

Owners of small businesses get to know many of their customers by name and deal with them on a personal basis. Through such relationships, small-business owners often become involved in the social, cultural, and political life of the community.

Molly has owned a small bakery in Napa for several years. The bakery offers breakfast, lunch, coffee, and a wide variety of pastries, breads, cakes, and pies. All breads and pastries are made on the premises. Molly has several regular customers who eat at the same time on the same days each week. One week, she read in the newspaper that one of her regulars had been injured in a car accident. When the regular's breakfast companion went to the bakery for breakfast alone, Molly gave him a basket of baked goods from the store to take to the injured patron. When a fire threatened the city, she made pots of coffee and baskets of baked goods and took them to the firefighters' staging area. Which of the following best demonstrates Molly's relationship with her customers and community?

venture capital.

Money invested in small, new, or struggling firms that have the potential to become very successful is called

Disagreements between the two parties have increased and contract disputes are causing many lawsuits.

Pick the correct phrase from the following that best characterizes the relationship between franchisors and franchisees.

Subassembly plant

Which of the following businesses would most likely be included in the production industry?

Retail and communications

Which of the following small businesses could be categorized as being in the distribution industry?

dual-branded franchise.

You stop by a Carl's Jr. fast food restaurant and notice that they also have Green Burrito Mexican food. This is an example of a

She most likely has a manufacturing franchise.

Zully has obtained an SBA loan to start a new business in her town. She has an arrangement with Ford Motor Company to be the exclusive seller of Ford vehicles. She has used the SBA loan to purchase this dealership, purchase land, build the dealership buildings, and pay for all of the initial advertising. What is the most likely form of business she has adopted for this company?

marketing concept

a business philosophy that a firm should provide goods and services that satisfy customers' needs through a coordinated set of activities that allow the firm to achieve its objectives

business plan

a carefully constructed guide for the person starting a business

wage survey

a collection of data on prevailing wage rates within an industry or a geographic area

marketing mix

a combination of product, price, distribution, and promotion developed to satisfy a particular target market

skills inventory

a computerized data bank containing information on the skills and experience of all present employees

Comparable worth

a concept that seeks equal compensation for jobs requiring about the same level of education, training, and skills

value

a customer's estimation of the worth of a product based on a comparison of its costs and benefits, including quality, relative to other products

SCORE Association

a group of business people who volunteer their services to small businesses through the SBA

marketing segment

a group of individuals or organizations within a market that share one or more common characteristics

target market

a group of individuals or organizations, or both, for which a firm develops and maintains a marketing mix suitable for the specific needs and preferences of that group

market

a group of individuals or organizations, or both, that need products in a given category and that have the ability, willingness, and authority to purchase them

Franchise

a license to operate an individually owned business as though it were part of a chain of outlets or stores

replacement chart

a list of key personnel and their possible replacements within a firm

job description

a list of the elements that make up a particular job

job specification

a list of the qualifications required to perform a particular job

first-line manager

a manager who coordinates and supervises the activities of operating employees

middle manager

a manager who implements the strategy and major policies developed by top management

administrative manager

a manager who is not associated with any specific functional area but who provides overall administrative guidance and leadership

financial manager

a manager who is primarily responsible for an organization's financial resources

marketing manager

a manager who is responsible for facilitating the exchange of products between an organization and its customers or clients

operations manager

a manager who manages the systems that convert resources into goods and services

customer lifetime value (CLV)

a measure of a customer's worth (sales minus costs) to a business over one's lifetime

incentive payment

a payment in addition to wages, salary, or commissions

commission

a payment that is a percentage of sales revenue

Human Resources manager

a person charged with managing an organization's human resources programs

franchisee

a person or organization purchasing a franchise

contingency plan

a plan that outlines alternative courses of action that may be taken if an organization's other plans are disrupted or become ineffective

marketing strategy

a plan that will enable an organization to make the best use of its resources and advantages to meet its objectives

benchmarking

a process used to evaluate the products, processes, or management practices of another organization that is superior in some way in order to improve quality

employee benefit

a reward in addition to regular compensation that is provided indirectly to employees

tactical plan

a smaller-scale plan developed to implement a strategy

salary

a specific amount of money paid for an employee's work during a set calendar period, regardless of the actual number of hours worked

hourly wage

a specific amount of money paid for each hour of work

objective

a specific statement detailing what an organization intends to accomplish over a shorter period of time

mission

a statement of the basic purpose that makes an organization different from others

marketing information system

a system for managing marketing information that is gathered continually from internal and external sources

Job analysis

a systematic procedure for studying jobs to determine their various elements and requirements

operational plan

a type of plan designed to implement tactical plans

marketing plan

a written document that specifies an organization's resources, objectives, strategy, and implementation and control efforts to be used in marketing a specific product or product group

human resources management (HRM)

all the activities involved in acquiring, maintaining, and developing an organization's human resources

goal

an end result that an organization is expected to achieve over a one- to ten-year period

lump-sum salary increase

an entire pay raise taken in one lump sum

sales forecast

an estimate of the amount of a product that an organization expects to sell during a certain period of time based on a specified level of marketing effort

franchisor

an individual or organization granting a franchise

strategic plan

an organization's broadest plan, developed as a guide for major policy setting and decision making

plan

an outline of the actions by which an organization intends to accomplish its goals and objectives

top manager

an upper-level executive who guides and controls the overall fortunes of an organization

core competencies

approaches and processes that a company performs well that may give it an advantage over its competitors

External recruiting

attracting job applicants from outside an organization

flexible benefit plan

compensation plan whereby an employee receives a predetermined amount of benefit dollars to spend on a package of benefits he or she has selected to meet individual needs

Internal recruiting

considering present employees as applicants for available positions

undifferentiated approach

directing a single marketing mix at the entire market for a particular product

discretionary income

disposable income less savings and expenditures on food, clothing, and housing

relationship marketing1

establishing long-term, mutually satisfying buyer-seller relationships

Planning

establishing organizational goals and deciding how to accomplish them

Small-business institutes (SBIs)

groups of senior and graduate students in business administration who provide management counseling to small businesses

participative leadership

leadership style in which all members of a team are involved in identifying essential goals and developing strategies to reach those goals

Venture Capital

money that is invested in small (and sometimes struggling) firms that have the potential to become very successful

small business

one that is independently owned and operated for profit and is not dominant in its field

disposable income

personal income less all additional personal taxes

Entreprenural leadership

personality-based leadership style in which the manager seeks to inspire workers with a vision of what can be accomplished to benefit all stakeholders

small-business investment companies (SBICs)

privately owned firms that provide venture capital to small enterprises that meet their investment standards

technical skills

specific skills needed to accomplish a specialized activity

autocratic leadership

task-oriented leadership style in which workers are told what to do and how to accomplish it without having a say in the decision-making process

interpersonal skills

the ability to deal effectively with other people

analytic skills

the ability to identify problems correctly, generate reasonable alternatives, and select the "best" alternatives to solve problems

leadership

the ability to influence others

communication skills

the ability to speak, listen, and write effectively

conceptual skills

the ability to think in abstract terms

Decision making

the act of choosing one alternative from a set of alternatives

marketing

the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

Franchising

the actual granting of a franchise

directing

the combined processes of leading and motivating

Total quality management (TQM)

the coordination of efforts directed at improving customer satisfaction, increasing employee participation, strengthening supplier partnerships, and facilitating an organizational atmosphere of continuous quality improvement

buying behavior

the decisions and actions of people involved in buying and using products

Human Resources Planning

the development of strategies to meet a firm's future human resources needs

problem

the discrepancy between an actual condition and a desired condition

Profit Sharing

the distribution of a percentage of a firm's profit among its employees

strategic planning process

the establishment of an organization's major goals and objectives and the allocation of resources to achieve them

Performance appraisal

the evaluation of employees' current and potential levels of performance to allow managers to make objective human resources decisions

organizing

the grouping of resources and activities to accomplish some end result in an efficient and effective manner

SWOT analysis

the identification and evaluation of a firm's strengths, weaknesses, opportunities, and threats

personal income

the income an individual receives from all sources less the Social Security taxes the individual must pay

Compensation

the payment employees receive in return for their labor

Compensation System

the policies and strategies that determine employee compensation

Orientation

the process of acquainting new employees with an organization

Recruiting

the process of attracting qualified job applicants

Management

the process of coordinating people and other resources to achieve the goals of an organization

Job evaluation

the process of determining the relative worth of the various jobs within a firm

market segmentation

the process of dividing a market into segments and directing a marketing mix at a particular segment or segments rather than at the total market

controlling

the process of evaluating and regulating ongoing activities to ensure that goals are achieved

Selection

the process of gathering information about applicants for a position and then using that information to choose the most appropriate applicant

leading

the process of influencing people to work toward a common goal

Management development

the process of preparing managers and other professionals to assume increased responsibility in both present and future positions

motivating

the process of providing reasons for people to work in the best interests of an organization

marketing research

the process of systematically gathering, recording, and analyzing data concerning a particular marketing problem

Employee training

the process of teaching operations and technical employees how to do their present jobs more effectively and efficiently

business buying behavior

the purchasing of products by producers, resellers, governmental units, and institutions

consumer buying behavior

the purchasing of products for personal or household use, not for business purposes

Small-business development centers (SBDCs)

university-based groups that provide individual counseling and practical training to owners of small businesses

Customer Relationship Management (CRM)

using information about customers to create marketing strategies that develop and sustain desirable customer relationships

Place utility

utility created by making a product available at a location where customers wish to purchase it

Time utility

utility created by making a product available when customers wish to purchase it

possession utility

utility created by transferring title (or ownership) of a product to a buyer

a private lender.

A business seeking a loan through the Small Business Administration will actually be given a loan through

business plan

A(n) ____ is a carefully constructed plan for an individual starting a business.

Less than a week

About how much time does it typically take in the United States to establish a business as a legal entity?

Small firms produce two-and-a-half times as many innovations as large firms relative to the number of persons employed

Adamaris and Britney recently moved their small computer design company into an industrial building. They have filed for a patent on their latest invention and are working on two others. Which of the following statements is correct regarding small business and technical innovation?

government regulations

As a class assignment, business students were told to prepare a business plan for a business they would like to own. Which of the following is something that would not be included in the plan?

service stations

Automobile dealerships and ___ were the primary uses for franchises in the early days of franchise agreements.

National Franchise Mediation Program

Because of disputes between franchisors and franchisees, a program was instituted to arbitrate them. What is the name of that program?

Distribution

Brenda has a small grocery store in a residential neighborhood where she primarily sells staples to the people who live in the area. Which of the following best describes the industry she operates in?

small-business institute.

Business students at universities can work together to provide management counseling to small businesses in their community. This program is part of the

This is a franchise and the franchisor has sent its inspector to ensure the business is operated according to the franchise license.

D'Anton owns a fast food business and takes great pride in its appearance, cleanliness, and customer service. One morning, an individual wearing a badge that identified him as an inspector entered the business and asked permission to inspect. Without hesitation, D'Anton permitted him to inspect. The individual was not from any government agency. What is the most likely explanation for D'Anton's actions?

are profit-making organizations.

Companies that invest in small businesses

Success will cause another outlet to be opened nearby.

Darrel's Donuts has been operating quite successfully for two years. Darrel is considering expanding the business by franchising. Which of the following is not an advantage of a franchise?

U.S. Commercial Service

Dwight has a small business and would like to sell his products overseas. Which of the following organizations can assist him?

500

For Jerry's Automobile Parts Fabricating business to qualify as a small business by the Small Business Administration, it can employ no more than ___ people.

$7 million

Fran's Fancy Frocks, a retail clothing store, may not exceed ___ in annual sales to qualify as a small business

They are franchises.

Genesis and Iziegbe are having a mother-daughter day together. Iziegbe took Genesis to Burger King for breakfast followed by a massage at Massage Envy, a fruit drink at Juice It Up, and getting nails done at Red Persimmon. They finish their day with frozen yogurt from Yogurtland. What do these businesses have in common?

the entrepreneurial spirit.

Hamilton has wanted to start a business of his own since he was a small child. This desire is referred to as

teen

High-tech ___ entrepreneurship is exploding

small businesses

In the United States, ___ account(s) for 97.7 percent of all identified exporters and produce(s) 33 percent of export value.

the reality that small-business workers are more innovative than workers in large businesses.

Jeff Katz, the founder of Orbitz, Inc., when speaking about new businesses recently said, "A flat checkbook is the mother of invention." He was referring to

36 percent

Jennifer would like to open her own business. According to the SBA, in 2017 women were 51 percent of the U.S. population, and owned at least ___ percent of all small businesses.

What are the goals for the business?

Jeremy has written a business plan for the business he would like to open. He states in the plan, "This business will serve over 400 customers by the end of the year and employ ten full-time employees." Which major question in his business plan does this statement address?

have the ability to quickly adapt to change.

Richard has a motorcycle and ATV store. His customers often talk about trikes. Richard orders some Harley-Davidson Trikes for his inventory. His actions are possible because small businesses

Service Corps of Retired Executives

SCORE is the acronym for

$2.0 million.

Samantha would like to get a small business loan from the SBA. What is the largest guaranteed loan she could be granted?

$30,000

Stuart has $50,000 to start a new business. This is higher than _____, the amount the Census Bureau and Federal Reserve say 50 percent of all new businesses begin with.

Eight.

Sylvia has an SBA-guaranteed business loan for the average life of such loans. How many years will she have to repay the loan?

a course that surveys eight to ten areas of business management.

The Small Business Administration offers many courses to individuals interested in going into business or improving his or her business. The most popular SBA course is

small business

The business that represents 99.9 percent of all employers in the United States is a

Subway.

The franchise with the most outlets in the United States is

28 million

There are approximately ___ businesses in the United States.