Intro to Business

A firm or individual providing financial capital to small businesses in exchange for an ownership stake in the company is called a:

venture capitalist

A ___________ is an overall explanation of why an organization exists and where it is trying to head

vision

Monica was hired by the Misty Mount Corporation to take over as the new chief executive officer. Her initial impression is that the company is in disarray, primarily because the employees do not have a sense of purpose or a common set of values. Monica's observations suggest that she needs to provide a(n) _________ for Misty Mount.

vision

Management is more progressive today. There is more emphasis on:

working in teams

Small businesses create about ______________ percent of the new jobs in the United States

65

Entrepreneurship is:

Accepting the risk of starting and running a business.

A ________ analysis is used to help companies evaluate their internal strengths and weaknesses, and develop an awareness of external threat and opportunities

SWOT

Which of the following government agencies is responsible for encouraging the development of small businesses?

Small Business Administration

Which of the following statements has resulted in changes in the role of management?

The marketplace is becoming global, which increases both competition and opportunities for cooperation and integration

Which of the following statements is a characteristic of entrepreneurs?

They look at problems and see opportunities

Which of the following statements accurately depicts an advantage that small businesses has over big businesses?

a small business can maneuver and change quicker than most large businesses can. It can react to market conditions and customer concerns much faster.

A successful web-based strategy that helps a business spread the word about its website and products is called?

affiliate marketing

Yesterday, on Facebook, one of Sarah's friends suggested that she spread the word about Mia Bella Boutique, an online company that designs hats and shoes. If Sarah's efforts generate 25 more people to spread the word, Sarah will receive 30% off her order. Mia Bella is utilizing ___________, an effective strategy for increasing awareness and market share for web-based businesses.

affiliate marketing

One reason we have seen continued growth in home-based businesses is:

affordable technology makes it easier to compete

Small businesses must seek advice from outside experts. In order to put together official documents such as leases, contacts, and partnership agreements, it is important to seek the advice of:

an attorney

A vision for a company is:

an explanation of why the company exists and where it wants to go.

____________ are private individuals who invest their own money in potentially hot new companies before these firms become larger, publicly traded companies.

angel investors

Enterprise zones are specific geographic areas that:

attract business investment by offering lower taxes and government support for development

The _______ style of leadership is characterized by making managerial decisions without consulting others

autocratic

Successful entrepreneurs are self-nurturing. This means they:

believe in themselves and their ideas

A _____________ is a written document that details the business idea, the target market and the business's competitive advantages, financial resources available for business, and the qualification of the management

business plan

Which of the following is not a reason stated for small business failure?

buying too little on credit and not being lenient enough with your credit paying customers

For prospective entrepreneurs, enrolling in an introduction of business or small business management course offered through their community college:

can be helpful by offering them an opportunity to meet experienced small business owners

____________ is choosing among two or more alternatives

decision making

Which of the following persons is most likely to be involved in strategic planning?

chief executive officer

A basic difference between goals and objectives is that goals are:

concerned with broad, long-term accomplishments, while objectives focus on specific short-term details

When managers determine that an organization is not making sufficient progress toward achieving its goals and objectives and they develop corrective measures, they are involved in:

controlling

________ is the management function that involves determining whether an organization is progressing toward its goals, rewarding employees for doing a good job, and taking corrective action when they are not

controlling

___________ planning is a part of contingency planning that is used to deal with sudden and unexpected changes in the business environment

crisis

The first step in developing a knowledge management system it to:

determine what knowledge is most important to the organization

Tactical planning is concerned with:

developing detailed strategies about what is to be done, who is to do it, and how it is to be done.

Middle managers are responsible for:

developing tactical plans and controlling

Leaders:

embrace change

Today's progressive managers:

emphasize teamwork and cooperation rather than discipline and order-giving

_____________ means giving employees the authority and responsibility to respond quickly to customer request

empowerment

___________ is the term used to describe giving workers the education and tools they need to assume decision-making powers

enabling

Kyra recently quit a job with a large corporation to start her own business. While she realizes that her decision comes with risk, she is excited at the chance to be independent and by the challenges of running her own firm. Kyra is an example of a(n):

entrepreneur

Entrepreneurs applying for a bank loan should realize that bankers will:

expect the entrepreneur to provide a business plan

An entrepreneurial team consists of:

experienced professionals from different areas of business

___________ include dealers, who buy products to sell to others, and ultimate customers who buy products for their own personal use

external customers

A(n) __________ leader would set objectives and give employees a great deal of freedom to decide for themselves how to accomplish those objectives

free-rein

After personal savings, the next largest source of capital for entrepreneurs is from:

friends and family

_________ are broad, long-term accomplishments an organization want to achieve

goals

Leadership, coaching, and morale building are all part of a manager's _________ skills.

human relations

When a firm makes use of SWOT analysis, one of its objectives is to:

identify the things it does well as an organization and the things it needs to improve

A business's size is measured:

in relation to other firms in its industry

State and city governments have promoted facilities where new businesses can open up shop and share common services such as secretarial, accounting, and legal services. Due to their remarkable success rate, _______________ continue to grow in popularity.

incubators

______________ are units within an organization that receive services from other units within the organization

internal customers

A creative person working within a corporation to launch new products and generate new profits is known as a(n):

intrapreneur

The Small Business Administration defines a small business as a firm that:

is independently owned but not dominant in its industry

One of the challenges of running a home-based business is:

keeping work and family task separate

_____________ is concerned with finding the right information and making that information accessible and understood by everyone in an organization

knowledge management

As a manager, two of Sylvia's strengths are her ability to communicate goals clearly, and her ability to guide, coach, and motivate workers. Based on these strengths, __________ is a management function that Sylvia is likely to be good at performing.

leading

___________ is the management function of creating a vision for the organization and guiding, training, coaching, and motivating employees to help achieve the goals and objectives of the organization

leading

When starting a small business, it's important to remember:

learning from others and gaining relevant business experience improves the odds for success

Which of the following activities is part of the planning function of management?

looking at market forecasts to identify future business opportunities and challenges

___________ is the art of utilizing organizational resources to accomplish goals at work

management

A ________ refers to people with unsatisfied wants and needs who are willing and able to buy a product or service

market

According to SBA guidelines, a manufacturing firm with 1,000 employees:

may be classified as a small business depending upon the size of other firms in the industry

Pete inherited a thriving dry cleaning business from his father and mother. As the surrounding towns expanded, several people suggested that Pete expand the business to offer service in new locations. He chose to maintain only one operation, so as not to lose control and to keep his work and home life balanced. Pete is a good example of a(n):

micropreneur

Business owners who prefer to maintain their businesses at a manageable size are called:

micropreneurs

Employees ofter work with managers to develop a(n) ___________ that outlines the fundamental purposes of their organization

mission statement

Jenna Raiter, the president and CEO of AutoMotion Auto Service Centers, has asked several managers and employees to help establish a statement to outline the fundamental purposes of their company. The result of this effort is likely to be a document known as a(n):

mission statement

Southwest College received a government grant to establish a business incubator. This facility will offer:

new businesses low-cost office space with basic business services

_______ are specific, short-term, measurable results an organization wants to achieve in order to fulfill its long-term goals

objectives

Business incubators are usually government-funded facilities intended to:

offer start-up firms low-cost office space and basic business services

Strategic planning looks at the organization as a whole, while ___________ planning focuses on daily tasks and decisions

operational

When managers work on creating conditions and systems to ensure that everything and everyone works together to achieve the organization's goals, they are involved in the __________ function of management.

organizing

Mangers who listen to their subordinates and allow them to participate in decision making are using the _________ style of leadership

participative

A market consists of potential buyers of a good or service. However, for a market to exist:

people must have unsatisfied wants and needs as well as a willingness and ability to buy

Pam is a sales manager for Paradise Beauty Products. She has told her sales people that she expects each of them to increase their customer contacts by at least 5% in the next month. Pam has set a(n):

performance standard

The management function concerned with anticipating future trends and determining the best strategies to achieve an organization's goals and objectives is known as:

planning

_______ is the management function that involves setting goals, strategies, and tactics for achieving the organization's goals and objectives

planning

__________ involves setting the organization's vision, goals, and objectives

planning

Two key management functions that need particular attention when starting a business are:

planning and financing

Affiliate marketing is a web-based business strategy that:

rewards individuals who are willing to link a company's website to their blog or social network page

Which of the following would be a concern addressed in a strategic plan?

should the firm make a long-term commitment to expand into new markets?

When comparing small businesses to their larger competitors, it is clear that:

small firms often can offer more personalized customer services than big firms

_________ planning determines the major goals of an organization and lays the foundation for obtaining and using resources to achieve those goals

strategic

The type of planning that is concerned with developing detailed short-term actions about what is to be done, who is to do it, and how it is to be done is known as _________.

tactical

_________ skills include the ability to preform tasks of a specific department or job, such as selling (marketing) or bookkeeping (accounting)

technical

The Small Business Administration sponsors volunteers from industry, trade associations, and education who offer advice to small business owners. The volunteers are called:

the Service Corps of Retired Executives

Bankers and potential investors are likely to read ___________ first.

the executive summary

Intrapreneurs make use of __________ to develop and launch new products and generate new profits.

their employer's existing human, financial, and physical resources

Autocratic leadership likely to be effective when:

the organization faces an emergency situation

Which of the following explains why individuals accept the risks of business ownership?

the sense of self-satisfaction and independence

One way to get into business is to buy an existing company. The value of the business used to determine a fair purchase price is based on:

the value of what the business owns, what it earns, and what makes it unique

Successful small business owners are:

valuable sources for information since you can learn from their experiences.