Princ. of Bus. Chapter 6 Entrepreneurship and Small Business Management

Business Plan

A written description of the business idea and how it will be carried out, including all major business activities.

Of all new businesses

About one-third are profitable, one- third do not make a profit but continue to operate, and one-third lose money

The small business _______ Is a US government agency that help small business owners obtain financing and other support for their companies

Administration

Small Business

An independent business with fewer than 500 employees.

Innovation

An invention or creation that is brand new.

Which of the following is probably the least important factor in becoming an entrepreneur?

Living in a major US city

________ Financing is money needed for the main resources of a business that will last for many years

Long-term

Long-term Financing

Money needed for the main resources of a business (such as land, buildings, and equipment) that will last for many years.

Venture Capital

Money provided by large investors to finance new products and new businesses that have a good chance to be very profitable.

Most business plans are developed for ______ year(s)

One

Short term financing is obtained for a period of less than

One year

The source of owner-supplied money depends on the business's ownership structure. In a(n) _________, each partner will be expected to contribute (owners)

Partnership

A business ______ Is a written description of a business idea and how it will be carried out

Plan

What is the most important step in starting a business?

Preparation

The source of owner-supplied money depends on the business's ownership structure. In a(n) ________, One person will supply the money

Proprietorship

Money needed to pay for the current operating activities of a business is referred to as ________ financing

Short-term

Entrepreneur

Someone who takes a risk in starting a business to earn a profit.

The amount of money needed to open a business is called ______ financing

Start-up

Start-up Financing

The amount of money needed to open the business.

Most of the money needed to start a new business comes from

The entrepreneur and his/her family and friends

Short-term Financing

The money needed to pay for the current operating activities of a business.

Entrepreneurship

The process of starting, organizing, managing, and assuming the responsibility for a business.

T/F : In the United States, nearly as many small businesses close as begin each year

True

T/F : The most popular use of business plans is to persuade lenders and investors to finance the venture

True

Which of the following does not describe a typical small business

it is dominant in its field

Which of the following would not be discussed in the operations plan section of the business plan

sales forecasts

Small business owners

usually get direct information from their customers about what they like and dislike

Small businesses have an advantage over big businesses when customers

want more individual attention

Over ______ of Small businesses have African-American, Asian-American, or Hispanic-American ownership

17%

The majority of small business owners are over _______ Years old, but nearly 20% are under 25

35

In the United States, women own this percentage of small businesses

35%

According to the Small Business Administration, a small business is an independent business with fewer than ____ employees

500

Improvement

A designed change that increases the usefulness of a product, service, or process.

Small Business Administration (SBA)

A government agency that helps small business owners develop business plans and obtain financing and other support for their companies.

Name three people a business needs

Banker, lawyer, and accountant

The source of owner-supplied money depends on the business's ownership structure. In a(n) ________, it's owned and financed by the shareholders

Corporation

If you start a new business, you need information about A. Competitors B. Government regulations C. Customers D. All of the above

D. All of the above

Location is important to small retail businesses because A. Most retailers need good customer traffic to survive B.Many potential customers will stay away if the business is not easy to find C. Customers generally do not want to travel long distances to find what they need D. All of the above

D. All of the above

Successful entrepreneurs tend to have all of the following characteristics except A. Energetic B. Goal-Oriented C. Creative D. Hesitant

D. Hesitant

Which element of a business plan discusses the entrepreneur short- and long-term goals for the business?

Description of the business

An ______ Is someone who takes a risk in starting a business to earn a profit

Entrepreneur

The most successful small business owners

Establish good working relationships with professionals such as bankers, lawyers, and accountants

Members of the Service Corp of Retired _______ Are retired local business people who volunteer their services to counsel and mentor new business owners

Executives

T/F : All entrepreneurship opportunities emerge from inventions and innovations

False

T/F : Once a business plan is written, it should never be revised and should never be updated

False

T/F : The process of starting, organizing, managing, and assuming the responsibility for a business is called capitalism

False

_______Of all small businesses are home - based businesses

Half

Almost all people starting small businesses have graduated from ________

High school

A(n) _______ Is an invention or creation that is brand new

Innovation

_______ Capital is money provided by large investors to finance new products and new business that have a good chance to succeed

Venture

The first step in developing a business plan is to

gather and review information

A designed change that increases the usefulness of a product, service, or process is called a(n) _______

improvement

Products or raw materials a business keeps on hand to do business are referred to as ____

inventory