Business chapter 6 A(n) assumes risk when deciding to start and run a business.

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

A banker or investor in a small business is very interested in making sure you are a person of good as a small business owner.

character

Select reasons why people become entrepreneurs.

opportunity independence profit

______ are creative people who work as entrepreneurs within corporations.

Intrapreneurs

A(n) can benefit both the trainee and the business owner by hiring the trainee to learn small-business management while assisting the owner in getting daily work done.

apprenticeship

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

Blank 1: Small Blank 2: Business Blank 3: Administration

As a small business grows, it is to oversee every detail, so entrepreneurs must hire, train and motivate good employees.

Blank 1: impossible, difficult, or hard

______ are individuals or companies that invest in new businesses in exchange for partial ownership in those businesses.

Venture capitalists

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

entrepreneur

Becoming an apprentice, talking to other business owners, and working for a successful entrepreneur are all examples of effective ways to obtain for running your own business.

experience, information, knowledge, skills, or training

True or false: Addressing the cover letter on your business plan "To whom it may concern" is considered preferable.

false

When writing a business plan, it is important to:

calculate how much money you need to start analyze the competition

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

true

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

a market

Bankers receive many business plans every day, so the of your business plan must be written to catch their interest quickly.

Blank 1: executive Blank 2: summary

More personal service and the ability to respond quickly is an advantage for small businesses.

customer

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

______ refers to accepting the risk of starting and running a business.

Entrepreneurship

A(n) ______ is 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).

business plan

Being self-directed, self-nurturing, action-oriented, and tolerant of uncertainty are all considered characteristics of a(n):

entrepreneur

A(n) ______ team is a group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make, and market a new product.

entrepreneurial

Many use their time, money, and energy to turn their passions into sustainable businesses. They are comfortable being their own bosses and are not afraid of failure.

entrepreneurs or micropreneurs

businesses are businesses that are independently owned and operated, are not dominant in their field of operation, and meet certain standards of size in terms of employees or annual receipts.

small

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

Cover letter

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

Cover letter Executive summary company background

Entrepreneur Micropreneur

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

The most important things investors want to know are what makes the product more desirable 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

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 organizations require the following:

capital information management

Local community college classes are a good place to start to learn about business and

entrepreneurship

Entrepreneurial attributes include:

highly energetic tolerant of uncertainty action-oriented

A small business is defined as:

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

In 2019, online retail sales reached over $365 , or approximately percent of all retail sales.

Blank 1: billion Blank 2: 12

It is extremely important to develop a(n) before going to a 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.

Blank 1: business Blank 2: plan

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) .

Blank 1: business Blank 2: plan

Since the Executive Summary is the summary of the proposed business venture, it should include parts of the entire .

Blank 1: business Blank 2: plan

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.

Blank 1: executive Blank 2: summary

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

Blank 1: global or international

An inexpensive can help you determine where to locate your business, whom to select as your target market, and what is an effective strategy for reaching it.

Blank 1: market or marketing Blank 2: research Blank 3: study

While a business plan is a detailed document with many sections, its overall purpose is to describe the nature of the business, the market, and the over the competition.

Blank 1: target or targeted Blank 2: advantages or advantage

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

Blank 1: team Blank 2: managerial or management

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

Blank 1: venture Blank 2: capitalist

are creative people who work as entrepreneurs within corporations.

Intrapreneurs

______ want to maintain a balanced life style while doing the kind of work they want to do.

Micropreneurs

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. Which of the following are some business functions Chris has addressed?

Planning Knowing your customers

Which of the following are good ways to learn how to run your own business?

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

The U.S. government agency that advises and assists small businesses by providing management training and financial advice and loans is called the:

Small Business Administration

To 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

A(n) is hired to assist the owner of a small business while gaining experience.

apprentice

The executive summary is the part of the ______ plan that consists of a two- or three-page management summary of the proposed venture, including a short description of the business, and discusses major goals and objectives.

business

Adam hopes to show the bank lending manager he is meeting 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

A good business plan takes a lot of time to write, but you have only a few minutes to convince readers not to throw it away. This is why your summary is very important.

executive

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:

follow the daily sales and expenses manage customer records

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

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.

incubators

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

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

maintain good employee relations be respectful of employees' opinions provide more challenging opportunities to learn

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 large firms include more personal customer service and the ability to respond quickly to:

opportunities

Entrepreneurs often come up with an idea for a new business and need financing. At this stage, it is important to develop a business , which forces potential small-business owners to be quite specific about the products or services they intend to offer (answer is one word).

plan

Learning from others is a useful way to avoid pitfalls when starting a small business. Some things you may be told would include:

that finding and retaining good workers is hard to hire a good lawyer and accountant starting with enough money

True or false: Most entrepreneurs do not get their ideas from a flash of inspiration; they come more from their passions or looking at problems.

true

Among the hurdles small businesses must overcome in starting to operate globally are:

understanding cultural differences difficulty finding financing bureaucratic paperwork

Daniel wanted to start his own small business. After spending his own money on marketing research, Daniel asked his friend Chase to be 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

After working for a large auto manufacturing company for over 20 years, Silvia decided to start her own auto accessory store. While facing new challenges every day, Silvia enjoys being free to manage her company as she desires. This example illustrates:

why people take the risks of entrepreneurship