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

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

Select all that apply When writing a business plan, it is important to:

calculate how much money you need to start analyze the competition

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

Venture capitalists

Select all that apply All organizations require the following:

capital information management

Two advantages small firms have over large firms include more personal customer service and the ability to respond quickly to:

opportunities

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.

target advantages

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

Blank 1: billion Blank 2: 12

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

Entrepreneurs

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

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

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

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

understanding cultural differences difficulty finding financing bureaucratic paperwork

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.

Blank 1: Small

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

Blank 1: Venture Blank 2: capitalists

Becoming a(n) is one of the best ways to learn about how to run a business.

Blank 1: apprentice or intern

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

Blank 1: apprentice or trainee

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

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

Blank 1: financing

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.

Blank 1: incubator

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

True

David opened his own bicycle shop 30 years ago, and although he enjoyed his work, he needed more free time. When Josie requested to work as an apprentice, David was very willing. Before long Josie was able to run the store without any help. This is an example of how:

apprenticeships can benefit both the business owner and the apprentice

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).

b plan

Select all that apply Select the characteristics of an intrapreneur.

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

Select the characteristics of an intrapreneur.

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

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

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

Blank 1: customer

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

Micropreneurs

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

cover letter

Select all that apply Select reasons why people become entrepreneurs.

profit independence opportunity

______ are creative people who work as entrepreneurs within corporations

intrapreneurs

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

Individuals who possess such attributes as being self-directed, action-oriented, and tolerant of uncertainty can make excellent like Bill Gates and Steve Jobs.

Blank 1: entrepreneurs

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.

Blank 1: entrepreneurs or micropreneurs

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

Blank 1: entrepreneurship

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?

Executive summary company background Cover letter

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

buy

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:

manage customer records follow the daily sales and expenses

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

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

Jason has prepared a comprehensive which includes a cover letter, executive summary, company background, management team, financial plan, capital required, marketing plan, location analysis, manufacturing plan, and an appendix.

Blank 1: business Blank 2: 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)

Blank 1: business Blank 2: 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.

Blank 1: executive

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.

Blank 1: incubators

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

Entrepreneurs start a business with the desire to grow the business and generate wealth while start a business that will stay small, allowing them to have a balanced lifestyle and the ability to do the kind of work they want to do.

Blank 1: micropreneurs

Managerial incompetence and inadequate financial planning are two common reasons for - failure

Blank 1: small Blank 2: business

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

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

Cover letter

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

Select all that apply Which of the following are good ways to learn how to run your own business?

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

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

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)

Blank 1: business Blank 2: plan

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).

Blank 1: plan or strategy

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

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

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

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

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

entrepreneur

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 Small Business Administration (SBA) is the U.S. government agency that advises and assists small businesses by:

providing loans providing management training providing financial advice

Kayla wanted to open her own dress design business. She spent a few hours putting together a marketing plan, then selected an award-winning dress she designed and wore it to the meeting with the bank. The most likely reason she did not receive a loan was:

she did not develop a thorough business plan

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

As a small business grows, it is _____ to oversee every detail; entrepreneurs must train and motivate employees

impossible

Some common causes of small business failure include:

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

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

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

Entrepreneurship