MGMT 159 Chapter 6

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

global

A business plan is a detailed written statement that describes:

(1) the target market (2) the resources and qualifications of the owner(s)

characteristics of an intrapreneur:

(!) a creative person who works within a corporation (2) someone who uses company's resources to launch new products (3) he or she generates profits by leveraging a firm's human financial and physical resources

Potential sources of ___ for an entrepreneur are personal savings and government agencies such as the Small Business Administration, the Farmers Home Administration, the Economic Development Authority, and the Minority Business Development Agency

capital

Included in the comprehensive business plan, the ___ plan provides five-year projections for income, expenses, and funding sources

financial

Planning, ____, keeping good business records, knowing your customers, and managing employees are what it takes to start and run a small business

financing

Managers address many activities including planning, financing, marketing, human resource development, and record keeping. Of these functions, which two are of a primary concern when starting a business?

planning and financing

Wayne is starting a small business, but needs help with management training, financial advice, and loans. He should contact the __ __ __

small business administration

___ use a company's existing resources to launch new products and generate new profits. They are the creative people who work as entrepreneurs within corporations.

Intrapreneurs

Working in a successful business is a good way to learn the operations and could:

be a step in buying out the owner

___ are specific geographic areas to which governments attract private business investment by offering lower taxes and other government support

enterprise zones

A comprehensive business plan will include cover letter, ___, company background, management team, financial plan, capital required, marketing plan, location analysis, manufacturing plan, and an appendix

executive summary

When starting a small business, government agencies such as the Small Business Administration, the Farmers Home Administration, the Economic Development Authority, and the Minority Business Development Agency are possible sources of:

information and capital

A small business is defined as:

one that meets certain standards of size in terms of employees or receipts one that is independently owned and operated one that is not dominant in its field

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

There are 27.8 million _ in the United States, accounting for more than 50 percent of the GDP

small businesses

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

venture capitalist

What are some of the factors that could be associated with small-business success?

Managerial competence Adequate financial planning

Entrepreneurs start a business with the desire to grow the business and generate wealth while micropreneurs start a business that will stay small, allowing them to have a(n) ___ ___ and the ability to do the kind of work they want to do

balanced lifestyle

A(n) ___ is someone accepting the risk of starting and running a business

entrapreneur

A(n) ____ assumes risk when deciding to start and run a business

entrepreneur

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

Business ___ are centers that offer businesses in the critical stage of early development low-cost offices and access to basic services such as accounting, legal advice, and secretarial help

incubators

The part of a business plan that includes an organization chart, job descriptions of listed positions, and detailed resumes of the current and proposed executives is called the ___ ___ section

management team

The section of a business plan that describes minimum plant size, machinery required, production capacity, inventory and inventory-control methods, quality control, and plant personnel requirements is called the:

manufacturing plan

The best way to define a(n) ____ is all consumers with unsatisfied wants and needs who have both resources and the willingness to buy

market

Entrepreneurs who are not interested in starting a mammoth corporation, but rather are interested in a balance between lifestyle and work are called ____

micropreneurs

A Self-Employment Assistance Program (SEA) offered by some states is designed to:

pay unemployment benefits while building a business and provide training and counseling to the new business owner