Business and Entrepreneurship Chapter 1-3

Aptitude

The ability to learn a particular kind of job.

Goal

(I) will learn more about starting (my) own business.

SMART Goal

(I) will learn more about starting a catering business by obtaining information from the small business administrating and talking with the owners of three local catering businesses by the end of the month.

Some documents that might be contained in the appendix include:

-Tax returns for the past three years. -Personal financial statement of the owner. -Copy of licenses/resume of the owner. -Letters of recommendation. -Copies of letters of intent from suppliers.

Medium-term sales projections cover a period of about ____ year.

2-5

Brainstorming

A creative problem-solving technique that involves generating a large number of fresh ideas.

Business Plan

A written document that describes all the steps necessary in operating a business.

Self-Assessment

An evaluation of your strengths and weaknesses.

An advantage of entrepreneurship is that entrepreneurs are their own ____.

Boss

____ is another name for the economic system in the United States.

Capitalism

Communism is an example of a(n) ____ economy.

Command

The ___ for your business plan should briefly describe your business, its potential for success, and the amount of capital you need.

Cover letter

The first step in the problem-solving model is to ____ the problem.

Define

When operating with ____, entrepreneurs behave consistently in actions, values, methods, measures, principles, expectations, and outcomes.

Enetegrady

A(n) ____ is the way an entrepreneur intends to extract his or her money from a business after it is operating successfully.

Exit strategy

How much money you want to earn is a(n) ____ goal.

Financial

A business plan may help you secure ____ for a business.

Financing

Successful entrepreneurs are ____ -oriented.

Goal

Specific (SMART Goal Component)

Goals should be specific and answer "what", "how" and "why" questions.

Measurable (SMART Goal Component)

Goals should establish ways to measure your progress.

Timely (SMART Goal Component)

Goals should have a time frame for achievement.

Attainable (SMART Goal Component)

Goals should not be too far out of reach.

Realistic (SMART Goal Component)

Goals should represent things to which you are willing to commit.

To assess your suitability for entrepreneurship, you should consider your strengths, weakness, ____, interests, past experiences, and aptitude.

Hobbies

The people who create goods and services are called ____ resources.

Human

Financial Statements

In the financial management section of the business plan an entrepreneur should include proforma financial statement, which is a financial statement based on projected revenues and expenses.

Many entrepreneurs make decisions casually or base them on ____.

Intuition

Table of Contents

Listing of the material included in a publication, full page. Shows reader what each page covers. Sections are listed in proper order, and given page number are correct.

____ measures the advantages of producing one additional unit of a good or service.

Marginal benefit

A description of the industry in which you will operate your business is found in the ____ section of a business plan.

Marketing

In comparing different business opportunities, you should look at the particular ____ associated with the business.

Markets

Entrepreneurs try to identify unmet ____ of the marketplace.

Needs

Attending conferences, seminars, and workshops enable entrepreneurs to ____.

Net Work

Statement of Purpose

No more than one or two paragraphs. Brief explanation of why you are asking for a loan and what you plan to do with the money.

When a market is dominated by a small number of businesses that gain the majority of total sales revenue, it is called a(n) ____.

Oligopoly

Title Page

One paper, standard paper. Name of company, date, owner of company, title of the owner, address, and phone number.

The ____ section of a business plan discusses hiring and personnel procedures.

Operations

An entrepreneur who chooses one alternative over another is using the concept of ____ cost.

Opertunity

Employees

People hired to work for someone else.

Entrepreneurs

People who own, operate, and take the risk of a business venture.

A market with ____ competition consists consists of a very large number of businesses producing nearly identical products and has many buyers.

Perfect

Opportunities

Possibilities that arise from existing conditions.

The ____ function of business creates or obtains products or services for sale.

Production

A business plan must provide detailed financial information that shows how your business will succeed in earning a(n) ____.

Profit

If it is not possible to quantify the alternatives in the fourth step of the problem-solving model, the decision maker may ____ each alternative.

Rank

Goals should be ____, or represent things to which you are willing to commit.

Realistic

____ businesses sell products directly to the people who use or consume them.

Retailing

____ is a nonprofit association made up of working and retired business professionals who volunteer their time to provide small businesses and entrepreneurs with free real-world advice and know-how.

Score

____ are activities that are consumed as they are produced.

Services

Executive Summary

Short restatement of the report. No longer than one or two paragraphs. Describe your business concept and communicated what is unique, projects for sale/costs and profits, identify you needs. State how much you want to borrow.

Trade Shows

Special meetings where companies of the same industry or related industries display their products.

____ occurs when individual workers focus on single tasks, enabling each worker to become more efficient and productive.

Specialization

In the concluding statement of a business plan, you should emphasize your commitment to the ____ of the business.

Success

WHat should be in the appendix of a business plan?

Supporting documents that provide additional information and back up statements made in the body the report.

Entrepreneurship

The process of running a business of one's own.

Trade Associations

They save organizations that exist to provide information, education, support, and networking opportunities to entrepreneure's and small businesses.

Ideas

Thoughts or concepts that come from creative thinking.

A common mistake made by many entrepreneurs is to provide ____ financial projection in their business plans.

Unrealistic