BUS 101 Chapter 6 Questions

Entrepreneurs:

(1) Create thousands of jobs (2) Help the country prosper (3) Strengthen the economy

There are many good reasons for going global. Which of the following are examples of such reasons?

(1) Exporting can extend product life (2) Exporting can absorb excess inventory

There are a few hurdles that prevent many small businesses from engaging in the global market. Which of the following are examples of such problems?

(1) Financing is often difficult to find (2) Would-be exporters do not know how to get started

Entrepreneurial attributes include:

(1) Highly energetic (2) Action-oriented (3) Tolerant of uncertainty

A business that meets the criteria for a small business:

(1) Is independently owned and operated (2) Is small only in relationship to the rest of its industry

Which of the following are indications a business idea is a good opportunity?

(1) It fills customers' needs (2) You can sell the product at a price customers will pay and still make a profit

Which of the following are some challenges of running a home-based business?

(1) Managing time (2) Keeping work and family tasks separate

An important quality for entrepreneurs is:

The ability to tolerate uncertainty

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

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

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):

Business plan

Potential sources of ____________ for an entrepreneur are personal savings and government agencies such as the Small Business Administration (SBA), the Farmers Home Administration, the Economic Development Authority, and the Minority Business Development Agency

Capital

Which section of the comprehensive business plan indicates the amount of capital needed to commence or continue operations, and describes how these funds are to be used?

Capital required

A reason for the growth and success of home-based businesses is that:

Computer technology has leveled the playing field

____________ zones are specific geographic areas to which governments attract private business investment by offering lower taxes and other government support

Enterprise

Opportunity, profit, independence, and challenge are some reasons people are willing to take the risks of being 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

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

Entrepreneurship

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

Executive

If you want to be both independent and rich, you need to pursue a business with high:

Growth

____________ are creative people who work as entrepreneurs within corporations

Intrapreneurs

Himanshu called his large U.S. supplier to ask for an urgent delivery to his firm in Japan, but his request needed the approval of a high-level manager in the supplying firm. After 10 minutes browsing the Internet, Himanshu found a small business in the U.S. offering the same product. Seconds later, he was talking to the owner. The shipment left for Japan that day. This example demonstrates:

The advantages small businesses have over large businesses in international trade

Which of the following is a factor that increases the chances of success of a small business over a large one?

The customer requires a lot of personal attention

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 they then presented to a bank. Daniel:

Understands the steps needed to start a small business

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

Venture capitalists

Micropreneurs are willing to accept the risk of starting and managing a business that:

(1) Remains small (2) Offers them a balanced lifestyle (3) Lets them do the kind of work they want to do

It is possible to get started in business by working in a successful one to learn about it and then:

(1) Suggesting the owner take a partial retirement so you can gradually take over (2) Offering to buy out the owner over time (3) Buying out the current owner all at once

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

(1) To hire a good lawyer and accountant (2) That finding and retaining good workers is hard (3) Starting with enough money

Some common causes of small business failure include:

(1) Underpricing or overpricing goods or services (2) Starting with too little capital (3) No experience in that business or industry

The personal qualities needed to be an entrepreneur include being:

(1) Very energetic (2) Self-directed (3) Tolerant of uncertainty

An inexpensive marketing research study may help you determine which of the following?

(1) What is an effective strategy for reaching your target market (2) Where to locate (3) Whom to select as your target market

____________ use a company's existing resources to launch new products and generate new profits. They are the creative people who work as entrepreneurs within corporations.

Intrapreneurs

A necessary and invaluable aid to entrepreneurs is a competent, experienced ____________ who knows and understands small business. This person can help with leases, contracts, partnership agreements, and protection against liabilities.

Lawyer

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

Community Development Financial Institutions (CDFI) have been successful because they:

(1) Maintained financial discipline other lenders lack (2) Provide counseling on improving cash flow (3) Offer counseling on marketing strategies

A small business is defined as:

(1) One that meets certain standards of size in terms of employees or receipts (2) One that is not dominant in its field (3) One that is independently owned and operated

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.

Incubator

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

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

Knowledge

The part of a business plan that includes an organization chart, job descriptions of listed positions, and detailed resumes of the current and proposed executives is called the ____________ section.

Management team

Within the comprehensive business exam, the ____________ plan outlines sales, advertising, promotion, and public relations programs. This section also compares prices to competitors and forecasts sales in dollars and units.

Marketing

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

Opportunities

Managers have many functions, such as planning, financing, marketing, human resource development, and accounting. Of those, ____________ and ____________ are the two primary concerns in the start up phase.

Planning; financing

____________ businesses generate 60% to 80% of the new jobs each year and about 80% of United States workers find their first jobs in this type of business

Small

Taking over a(n) ____________ business is a good way to get started in business.

Successful