Business Chapter 6

All consumers with unsatisfied wants and needs who have both resources and the willingness to buy are:

- A market

The keep track of daily sales, expenses, profits, inventory control, customer records, and payroll a small business needs a good.

- Accounting system

Understanding where to locate your business, who your target market is, and how to reach them, can be accomplished through

- An inexpensive market research study

What type of business relationship benefits both trainee and a business owner occurs when trainee is hired to learn small-business management while assisting the owner in getting daily work done?

- Apprenticeship

David opened his own bicycle shop 30 years ago, and although he enjoyed his work, he needed more free time. When Josie requested to work as an apprentice, David was very willing. Before long Josie was able to run the store without any help. This is an example of how ________.

- Apprenticeships can benefit both the business owner and the apprentice.

Since entrepreneurs can't compete with larger firms' pay and benefits, what are three ways they can motivate employees?

- Be respectful of employees' opinions - Maintain good employee relations. - Provide more challenging opportunities to learn.

Adam hopes to show the bank lending manager he is meting with that he is aware of who the target market is, who the competition is, how much money he needs, and exactly how he intends to turn a profit by supplying him with a(n) _____.

- Business Plan

Is it extremely important to develop a(n) _____ before going to the bank for a loan, because it shows that you are aware of who the target market is, who the competition is, how much money you need, and exactly how you intend to turn a profit.

- Business Plan

Mark recently started a small consulting firm. He is drafting a detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competition, and the resources and qualifications of the owner(s). Mark is writing a(n) ______.

- Business Plan

All markets consists of consumers with unsatisfied wants and needs who have both resources and the willingness to:

- Buy

What is a good tactic for entrepreneurs to implement in order to keep a new company growing?

- Delegate authority to employees

Match the goals with the type of business person: Entrepreneur - Micropreneur-

- Entrepreneur- Desire to grow the business and generate wealth. - Micropreneur- Desire to remain small and balance lifestyle with work.

Some causes of small-business ______ include underpricing or overpricing goods or services, starting with too little capital, going into business without first learning something about the industry or market, and underestimating how much time it will take to build a market.

- Failure

Gaining financing, knowing how to get started in exporting, and navigating bureaucratic paperwork are major hurdles to consider when getting started in _______ business.

- Global or international

According to a recent study, offering low-cost offices with basic services to new businesses in the early stages of development results in an 87% success rate of _________ graduates.

- Incubator

What advice would established entrepreneurs likely tell a new, would-be business owner?

- Make sure your business is not undercapitalized.

Managing a small business became relatively easy with the advent of inexpensive personal computers. Inexpensive computer systems and off-the-shelf or even free, open-source software make it easy for the small business manager to Blank______.

- Manage customer records - Follow the daily sales and expenses

Classes on small business and entrepreneurship offered at a local community college offer prospective business owners the chance to _______.

- Meet with experienced entrepreneurs to get advice and form support networks.

What TWO advantages do small businesses have over larger companies?

- More personal customer service - The ability to respond quickly to opportunities.

Some common causes of small business failure include:

- No experience in that business or industry. - Starting with too little capital. - Underpricing or overpricing goods or services.

Two advantages small firms have over larger firms include more personal customer service and the ability to respond quickly to ______.

- Opportunities.

Select all that apply All organizations require the following:

- Planning - Information Management - Capital

Although there are many functions that are important in both the start-up and management phases of the business, what two functions are considered to be PRIMARY concerns?

- Planning and financing

What two items are described in a business plan?

- The resources and qualifications of its owner(s). - The target market.

True or False: The principles of management are similar for a small neighborhood business and a giant global firm.

- True

Among the hurdles small businesses must overcome in starting to operate globally are: Multiple select question.

- Understanding cultural differences - Bureaucratic paperwork - Difficulty in finding financing

Daniel wanted to start his own business. After spending his own money on marketing research, Daniel asked his friend Chase to his accountant. They spent a few months writing a business plan, which then they presented to a bank. Daniel:

- Understands the steps needed to start a small business.

Naomi invests in new businesses in exchange for partial ownership in those businesses. Naomi is a(n) _______.

- Venture Capitalist

What term is given to individuals or companies that invest in new businesses in exchange for partial ownership in those businesses?

- Venture capitalists

What two questions do entrepreneurs often ask themselves?

- What do I want, but can never find? -What really irritates me, and what product or service would help?

An inexpensive marketing research study may help you determine which of the following?

- Where to locate - What is an effective strategy for reaching your target market - Whom to select as your target market

What are THREE good ways to learn how to run your own business?

- Work for a successful entrepreneur. - Talk to other business owners - Run a small business during your off hours.

There are a few hurdles that prevent many small businesses from engaging in the global market. What are two examples of such problems?

- Would-be exporters do not know how to get started. - Financing is often difficult to find.

What advice is helpful for someone wanting to learn small-business management?

- You should become an apprentice or work for a successful entrepreneur.

A small business is defined as :

-Independently Owned and Operated -Not dominant in its field of operation -Meets certain standards of size in terms of employees or annual receipts.

A business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size in terms of employees or annual receipts is a(n):

-Small Business