Chapter 6 business quiz
Small businesses create a bout ____ percent of the new jobs in the US
65
Which of the following statement accurately depicts an advantage that small business has over big business
A small business can maneuver and change quicker than most large businesses can. It can react to market conditions and customer concerns much faster
Entrepreneurship
Accepting the risk of starting and running a business.
A successful web based strategy that helps a business spread the word about its website and products is called ________
Affiliate marketing
Small businesses must seek advice from outside experts. In order to put together official documents such as leases, contracts, and partnership agreements, it is important to seek the advice of_____
An attorney
State and city government have promoted facilities where new businesses can open up shop and share common services such as secretarial accounting and legal services. Due to their remarkable success rate ________ continue to grow in popularity
Incubators
A business size is measured
In relation to other firms in its industry
A creative person working within a corporation to launch new products and generate new profits is known as
Intrapreneur
One of the challenges of running a home based business is
Keeping work and family separate
a____refers to people with unsatisfied wants and needs who are willing and able to buy a product or serviceq
Market
According to SBA guidelines a manufacturing firm with 1000 employees
May be classified as a small business depending upon the size of other firms in the industry
Business owners who prefer to maintain their business at a manageable size are called
Micropreneurs
Southwest college received a government grant to establish a business incubator. This facility will offer____
New business low cost office space with basic business services
Affiliate marketing is a web based business strategy that_____
Rewards individuals who are willing to link a company's website to their blog or social network page
Which of the following government agencies is responsible for encouraging the development of small business
Small Business Administration
Bankers and potential investors are likely to read____ first
The executive summary
The small business administration sponsors volunteers from industry, trade associations, and eduction who offer advice to small business owners. These volunteers are called
The service corps of retired executives
Entrepreneurs make use of ______ to develop and launch new products and generate new profits
Their employers existing human financial and physical resources
Which of the following statements is a characteristic of entrepreneurs
They look at problems and see opportunities
A firm or individual capital to small businesses in exchange for an ownership stake in the company is called a
Venture capitalist
Which of the following explains why individuals accept the risks of business ownership
the sense of self-satisfaction and independence
One way to get into business is to buy an existing company. The value of the business used to determine a fair purchase price is based on:
the value of what the business owns, what it earns, and what makes it unique.
Successful small business owners are
valuable sources for information since you can learn from their experiences.
Successful entrepreneurs are self nurturing which means they
Believe in themselves and their ideas
A ______ is a written document that details the business idea, target market and the businesses competitive advantage, financial resources available for the business, and the qualification of the management
Business plan
Entrepreneurs applying fro a bank loan should realize that bankers will
Expect the entrepreneur to provide a business plan
One reason we have seen continued growth in home-based businesses is
affordable computer and information technology makes it easier to compete.
_____ are private individuals who invest their own money in potentially hot new companies before these firms become larger, publicly traded companies
angel investors
Enterprise zones are specific geographic areas that
attract business investment by offering lower taxes and government support for development.
For prospective entrepreneurs enrolling in an introduction to business or small business management course offered through their community college
can be helpful by offering them an opportunity to meet experienced small business owners.
An entrepreneurial team consists of
experienced professionals from different areas of business
After personal savings, the next largest source of capital for entrepreneurs is from
friends and family
The small business administration defines a small business as a firm that
is independently owned but not dominant in its industry.
When starting a small business, its important to remember
learning from others and gaining relevant business experience improves the odds for success.
Business incubators are usually government funded facilities intended to
offer startup firms low-cost office space and basic business services
A market consists of potential buyers of a good or service. However, for a market to exist
people must have unsatisfied wants and needs as well as a willingness and ability to buy
Two key management functions that need particular attention when starting a business are
planning and financing
When comparing small businesses to their larger competitors it is clear that
small firms often can offer more personalized customer services than big firms