Princ. of Bus. Chapter 6 Entrepreneurship and Small Business Management
Business Plan
A written description of the business idea and how it will be carried out, including all major business activities.
Of all new businesses
About one-third are profitable, one- third do not make a profit but continue to operate, and one-third lose money
The small business _______ Is a US government agency that help small business owners obtain financing and other support for their companies
Administration
Small Business
An independent business with fewer than 500 employees.
Innovation
An invention or creation that is brand new.
Which of the following is probably the least important factor in becoming an entrepreneur?
Living in a major US city
________ Financing is money needed for the main resources of a business that will last for many years
Long-term
Long-term Financing
Money needed for the main resources of a business (such as land, buildings, and equipment) that will last for many years.
Venture Capital
Money provided by large investors to finance new products and new businesses that have a good chance to be very profitable.
Most business plans are developed for ______ year(s)
One
Short term financing is obtained for a period of less than
One year
The source of owner-supplied money depends on the business's ownership structure. In a(n) _________, each partner will be expected to contribute (owners)
Partnership
A business ______ Is a written description of a business idea and how it will be carried out
Plan
What is the most important step in starting a business?
Preparation
The source of owner-supplied money depends on the business's ownership structure. In a(n) ________, One person will supply the money
Proprietorship
Money needed to pay for the current operating activities of a business is referred to as ________ financing
Short-term
Entrepreneur
Someone who takes a risk in starting a business to earn a profit.
The amount of money needed to open a business is called ______ financing
Start-up
Start-up Financing
The amount of money needed to open the business.
Most of the money needed to start a new business comes from
The entrepreneur and his/her family and friends
Short-term Financing
The money needed to pay for the current operating activities of a business.
Entrepreneurship
The process of starting, organizing, managing, and assuming the responsibility for a business.
T/F : In the United States, nearly as many small businesses close as begin each year
True
T/F : The most popular use of business plans is to persuade lenders and investors to finance the venture
True
Which of the following does not describe a typical small business
it is dominant in its field
Which of the following would not be discussed in the operations plan section of the business plan
sales forecasts
Small business owners
usually get direct information from their customers about what they like and dislike
Small businesses have an advantage over big businesses when customers
want more individual attention
Over ______ of Small businesses have African-American, Asian-American, or Hispanic-American ownership
17%
The majority of small business owners are over _______ Years old, but nearly 20% are under 25
35
In the United States, women own this percentage of small businesses
35%
According to the Small Business Administration, a small business is an independent business with fewer than ____ employees
500
Improvement
A designed change that increases the usefulness of a product, service, or process.
Small Business Administration (SBA)
A government agency that helps small business owners develop business plans and obtain financing and other support for their companies.
Name three people a business needs
Banker, lawyer, and accountant
The source of owner-supplied money depends on the business's ownership structure. In a(n) ________, it's owned and financed by the shareholders
Corporation
If you start a new business, you need information about A. Competitors B. Government regulations C. Customers D. All of the above
D. All of the above
Location is important to small retail businesses because A. Most retailers need good customer traffic to survive B.Many potential customers will stay away if the business is not easy to find C. Customers generally do not want to travel long distances to find what they need D. All of the above
D. All of the above
Successful entrepreneurs tend to have all of the following characteristics except A. Energetic B. Goal-Oriented C. Creative D. Hesitant
D. Hesitant
Which element of a business plan discusses the entrepreneur short- and long-term goals for the business?
Description of the business
An ______ Is someone who takes a risk in starting a business to earn a profit
Entrepreneur
The most successful small business owners
Establish good working relationships with professionals such as bankers, lawyers, and accountants
Members of the Service Corp of Retired _______ Are retired local business people who volunteer their services to counsel and mentor new business owners
Executives
T/F : All entrepreneurship opportunities emerge from inventions and innovations
False
T/F : Once a business plan is written, it should never be revised and should never be updated
False
T/F : The process of starting, organizing, managing, and assuming the responsibility for a business is called capitalism
False
_______Of all small businesses are home - based businesses
Half
Almost all people starting small businesses have graduated from ________
High school
A(n) _______ Is an invention or creation that is brand new
Innovation
_______ Capital is money provided by large investors to finance new products and new business that have a good chance to succeed
Venture
The first step in developing a business plan is to
gather and review information
A designed change that increases the usefulness of a product, service, or process is called a(n) _______
improvement
Products or raw materials a business keeps on hand to do business are referred to as ____
inventory
