BUS 101 CHAPTER 6

A small business is considered "small" only in relationship to other _ in its industry

businesses

a market consist of consumers with unsatisfied wants and needs who have both resources and the willingness to:

buy

Which section of the comprehensive business plan indicates the amount of capital needed to commence or continue operations, and describes how these funds are to be used

Capital required

Which of the following are some reasons for the growth of home-based businesses

Corporate downsizing Computer technology Tax laws that allow home office deductions

Which part of the business plan summarizes the most attractive points of your project in as few words as possible

Cover letter

Which of the following are some challenges of running a home-based business

Keeping work and family tasks separate Managing time

Chris spent his own money on marketing research, and consulted his sister Kara, who is an accountant. They spent the next few months writing a business plan. What are some business functions Chris has addressed?

Knowing your customers, planning

At what point is it most important to make your marketing decisions

Long before you introduce a product or open a store

_ are entrepreneurs willing to accept the risk of starting and managing a business that remains small, lets them do the kind of work they want to do, and offers them a balanced lifestyle

Micropreneurs

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

Small Business Administration

Which of the following regarding high-growth business (e.g.,technology firms) are true

They are difficult to start They are extremely difficult to keep going

Which of the following regarding entrepreneurs are true d

They are thoroughly comfortable being their own boss They are self-discipline the have job-creating powers

An inexpensive marketing research study may help you determine which of the following Where to locate Whom to select as your target market What is an effective strategy for reaching your target market

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

Which of the following are indications a business idea is a good opportunity

You can sell the product at a price customers will pay and still make a profit It fills customers' needs

One of the greatest advantages small business have is the ability to know their customers better and:

adapt quickly to their needs

The _______ section of a business plan describes company operations to date (if any), potential legal considerations, and areas of risk and opportunity. This portion also summarizes the firm's financial condition, and includes past and current balance sheets, income and cash flow statements

company background

A good business plan is between 25 and 50 pages long and takes many months to write. A comprehensive business plan will include the following:

cover letter, executive summary, company background, management team, financial plan, capital required, marketing plan, location analysis, manufacturing plan, appendix

Select all that are true of entrepreneurs

create thousands of jobs help the country prosper strengthen the economy

is a group of experienced people from different areas of business who join to form a managerial team with the skills to develop, make, and market a new product

entrepreneurial team

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

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

financial

Managers have many functions, such as planning, financing, marketing, human resource development, and accounting. Of those, _______ and _________ are the two primary concerns in the start up phase.

financing, planning

Most entrepreneurs get ideas for products and services:

from asking questions from looking around

The expansion and development of the internet has sprouted a world of small web-based businesses. This, among other reasons, may explain why online sales are rapidly:

increasing

The SBA determines whether a business is considered "small" only after analyzing how a particular business measures up compared to other businesses in its ____

industry

A necessary and invaluable aid to entrepreneurs is a competent, experienced _ who knows and understands small business. This person can help with leases, contracts, partnership agreements, and protection against liabilities

lawyer

The part of a business plan that includes an organization chart, job descriptions of listed position, 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 plan personnel requirement is called the:

manufacturing plan

Within the comprehensive business plan, the _______ plan outlines sales, advertising, promotions, and public relations programs. This section also compares prices to competitors and forecasts sales in dollars and units

marketing

__________ do not have the goal of growing their businesses into corporations but rather desire to maintain a balanced lifestyle while doing the kind of work they want to do. Most commonly these people own home or web-based businesses.

micropreneurs

A small business is defined as

one that is independently owned and operated one that is not dominant in its field

the phrase "poor management" covers a number of faults. Those faults include:

poor employee relations, poor planning

Entrepreneurs must recognize that they need competent and motivated employees. Since they can't compete with larger firms' pay and benefits, they need to:

provide more challenging opportunities to learn be respectful of employees' opinions delegate more often

Entrepreneurial _ may be better suited to run a business than individual entrepreneurs because members can combine creative skills from the start and it may ensure cooperative and coordination later among functions in the business

teams

A business plan is detailed written statement that describes:

the target market the resources and qualifications of its owner(s)

Some common causes of small business failure include:

underpricing or overpricing goods or services no experience in that business or industry starting with too little capital

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

Managerial competence Adequate financial planning

One of the most difficult tasks is raising money for a start-up. To raise money, entrepreneurs talk with bankers and other potential investors, and try to sell their ideas. In order to have a chance, most of the time, entrepreneurs have to present a(n) _

business plan

The program through which investment companies licensed by the Small Business Administration lend money to small businesses is called the:

Small Business Investment Company

The most important things investors want to know are what makes the product more desireable than what's already available and whether or not the product can be patented. In which section of the business plan should investors look to find this information?

Marketing plan

The SBA office staffed with volunteers from industry, trade associations, and education who counsel small businesses at no cost (except for expenses) is called:

Service Corps of Retired Executives