Chapter 20 : Achieving Success in the Small Business

walkaway.

A business termination in which the entrepreneur ends the business with its obligations met is called a:

getting expertise as quickly as possible.

For most owners of firms, the solution for liabilities of newness lies in:

sell off

In a _____ the assets of a firm are sold to another business, with the proceeds used to pay off the firm's remaining debts, and perhaps leaving the owner some small profit.

supplemental profits

Returns above costs intended as a secondary income for entrepreneurs are referred to as _____.

substitution profits

Returns intended to equal and replace the salary or wages the entrepreneur could draw working for someone else are referred to as _____.

Workout

Sue, the owner of a small business which bakes and sells homemade butter cookies, plans to close down the business and leave the country. If Sue arranges to pay off all debts after the business is officially closed, which of the following methods of business termination is being used here?

focuses on minimizing estate tax payments.

Tax management:

a lack of stability in terms of markets, operations, or finances.

The existence stage is defined by:

liquidation

The popular name for a Chapter 7 bankruptcy in which a bankrupt firm's assets are sold by the bankruptcy trustee and the proceeds used to pay the firm's debts is _____.

entrepreneurial experience

The two broad types that CSFs fall into are outside help and _____.

Rapid growth begins to slow down.

Which of the following events precedes the maturity stage of the product life cycle?

The emergence stage is characterized by a person thinking about and taking actions toward starting a firm.

Which of the following has been observed about the emergence stage of a small business life cycle?

Avoiding complacency

Which of the following is a challenge of the resource maturity stage?

Sales and profits during this stage grow at higher rates than at any other part of the product life cycle.

Which of the following is a characteristic of the growth stage of the product life cycle?

Bankruptcy

Which of the following is a form of business termination that uses a legal method for closing a business and paying off creditors when debts are substantially greater than assets?

Workout

Which of the following is a type of termination that is employed when the entrepreneur feels that the business was less than successful, usually because of the result of poor use of the firm's assets combined with an unsatisfying business experience?

Pass off

Which of the following is a type of transfer?

Most small businesses can only afford to launch a product on a small scale, so profits are not likely when a product emerges into the market.

Which of the following is true regarding the introduction stage of the product life cycle?

Products that are successfully revised move on to the growth stage.

Which of the following statements describes the introduction stage of the product life cycle accurately?

Service changes can be done relatively more quickly than changes in products.

Which of the following statements points out the difference between a product life cycle and a service life cycle accurately?