BUS
more likely to fail than male-owned businesses.
Matilda would like to open an ice cream and sweet treats store but she will need a loan to do so. She is concerned she may not be given a loan and researches the subject, discovering that in 2017, the SBA data showed that women-owned businesses are
soft-drink
Juan has been awarded a franchise in an industry in which the franchisor has licensed him to sell and distribute its product to retailers. Juan is most likely a franchisee in the ___ industry.
Macy because the SBA's primary financial function is to guarantee loans.
Marilyn and Macy are arguing about the primary financial function of the Small Business Administration. Marilyn argues that the SBA's primary function is to lend money. Macy argues that its primary function is to guarantee loans. Who is correct?
small-business investment company.
Milkshake Lending Company is a small privately owned firm providing venture capital to small businesses. This company could also be referred to as a
Owners of small businesses get to know many of their customers by name and deal with them on a personal basis. Through such relationships, small-business owners often become involved in the social, cultural, and political life of the community.
Molly has owned a small bakery in Napa for several years. The bakery offers breakfast, lunch, coffee, and a wide variety of pastries, breads, cakes, and pies. All breads and pastries are made on the premises. Molly has several regular customers who eat at the same time on the same days each week. One week, she read in the newspaper that one of her regulars had been injured in a car accident. When the regular's breakfast companion went to the bakery for breakfast alone, Molly gave him a basket of baked goods from the store to take to the injured patron. When a fire threatened the city, she made pots of coffee and baskets of baked goods and took them to the firefighters' staging area. Which of the following best demonstrates Molly's relationship with her customers and community?
venture capital.
Money invested in small, new, or struggling firms that have the potential to become very successful is called
Disagreements between the two parties have increased and contract disputes are causing many lawsuits.
Pick the correct phrase from the following that best characterizes the relationship between franchisors and franchisees.
Subassembly plant
Which of the following businesses would most likely be included in the production industry?
Retail and communications
Which of the following small businesses could be categorized as being in the distribution industry?
dual-branded franchise.
You stop by a Carl's Jr. fast food restaurant and notice that they also have Green Burrito Mexican food. This is an example of a
She most likely has a manufacturing franchise.
Zully has obtained an SBA loan to start a new business in her town. She has an arrangement with Ford Motor Company to be the exclusive seller of Ford vehicles. She has used the SBA loan to purchase this dealership, purchase land, build the dealership buildings, and pay for all of the initial advertising. What is the most likely form of business she has adopted for this company?
marketing concept
a business philosophy that a firm should provide goods and services that satisfy customers' needs through a coordinated set of activities that allow the firm to achieve its objectives
business plan
a carefully constructed guide for the person starting a business
wage survey
a collection of data on prevailing wage rates within an industry or a geographic area
marketing mix
a combination of product, price, distribution, and promotion developed to satisfy a particular target market
skills inventory
a computerized data bank containing information on the skills and experience of all present employees
Comparable worth
a concept that seeks equal compensation for jobs requiring about the same level of education, training, and skills
value
a customer's estimation of the worth of a product based on a comparison of its costs and benefits, including quality, relative to other products
SCORE Association
a group of business people who volunteer their services to small businesses through the SBA
marketing segment
a group of individuals or organizations within a market that share one or more common characteristics
target market
a group of individuals or organizations, or both, for which a firm develops and maintains a marketing mix suitable for the specific needs and preferences of that group
market
a group of individuals or organizations, or both, that need products in a given category and that have the ability, willingness, and authority to purchase them
Franchise
a license to operate an individually owned business as though it were part of a chain of outlets or stores
replacement chart
a list of key personnel and their possible replacements within a firm
job description
a list of the elements that make up a particular job
job specification
a list of the qualifications required to perform a particular job
first-line manager
a manager who coordinates and supervises the activities of operating employees
middle manager
a manager who implements the strategy and major policies developed by top management
administrative manager
a manager who is not associated with any specific functional area but who provides overall administrative guidance and leadership
financial manager
a manager who is primarily responsible for an organization's financial resources
marketing manager
a manager who is responsible for facilitating the exchange of products between an organization and its customers or clients
operations manager
a manager who manages the systems that convert resources into goods and services
customer lifetime value (CLV)
a measure of a customer's worth (sales minus costs) to a business over one's lifetime
incentive payment
a payment in addition to wages, salary, or commissions
commission
a payment that is a percentage of sales revenue
Human Resources manager
a person charged with managing an organization's human resources programs
franchisee
a person or organization purchasing a franchise
contingency plan
a plan that outlines alternative courses of action that may be taken if an organization's other plans are disrupted or become ineffective
marketing strategy
a plan that will enable an organization to make the best use of its resources and advantages to meet its objectives
benchmarking
a process used to evaluate the products, processes, or management practices of another organization that is superior in some way in order to improve quality
employee benefit
a reward in addition to regular compensation that is provided indirectly to employees
tactical plan
a smaller-scale plan developed to implement a strategy
salary
a specific amount of money paid for an employee's work during a set calendar period, regardless of the actual number of hours worked
hourly wage
a specific amount of money paid for each hour of work
objective
a specific statement detailing what an organization intends to accomplish over a shorter period of time
mission
a statement of the basic purpose that makes an organization different from others
marketing information system
a system for managing marketing information that is gathered continually from internal and external sources
Job analysis
a systematic procedure for studying jobs to determine their various elements and requirements
operational plan
a type of plan designed to implement tactical plans
marketing plan
a written document that specifies an organization's resources, objectives, strategy, and implementation and control efforts to be used in marketing a specific product or product group
human resources management (HRM)
all the activities involved in acquiring, maintaining, and developing an organization's human resources
goal
an end result that an organization is expected to achieve over a one- to ten-year period
lump-sum salary increase
an entire pay raise taken in one lump sum
sales forecast
an estimate of the amount of a product that an organization expects to sell during a certain period of time based on a specified level of marketing effort
franchisor
an individual or organization granting a franchise
strategic plan
an organization's broadest plan, developed as a guide for major policy setting and decision making
plan
an outline of the actions by which an organization intends to accomplish its goals and objectives
top manager
an upper-level executive who guides and controls the overall fortunes of an organization
core competencies
approaches and processes that a company performs well that may give it an advantage over its competitors
External recruiting
attracting job applicants from outside an organization
flexible benefit plan
compensation plan whereby an employee receives a predetermined amount of benefit dollars to spend on a package of benefits he or she has selected to meet individual needs
Internal recruiting
considering present employees as applicants for available positions
undifferentiated approach
directing a single marketing mix at the entire market for a particular product
discretionary income
disposable income less savings and expenditures on food, clothing, and housing
relationship marketing1
establishing long-term, mutually satisfying buyer-seller relationships
Planning
establishing organizational goals and deciding how to accomplish them
Small-business institutes (SBIs)
groups of senior and graduate students in business administration who provide management counseling to small businesses
participative leadership
leadership style in which all members of a team are involved in identifying essential goals and developing strategies to reach those goals
Venture Capital
money that is invested in small (and sometimes struggling) firms that have the potential to become very successful
small business
one that is independently owned and operated for profit and is not dominant in its field
disposable income
personal income less all additional personal taxes
Entreprenural leadership
personality-based leadership style in which the manager seeks to inspire workers with a vision of what can be accomplished to benefit all stakeholders
small-business investment companies (SBICs)
privately owned firms that provide venture capital to small enterprises that meet their investment standards
technical skills
specific skills needed to accomplish a specialized activity
autocratic leadership
task-oriented leadership style in which workers are told what to do and how to accomplish it without having a say in the decision-making process
interpersonal skills
the ability to deal effectively with other people
analytic skills
the ability to identify problems correctly, generate reasonable alternatives, and select the "best" alternatives to solve problems
leadership
the ability to influence others
communication skills
the ability to speak, listen, and write effectively
conceptual skills
the ability to think in abstract terms
Decision making
the act of choosing one alternative from a set of alternatives
marketing
the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
Franchising
the actual granting of a franchise
directing
the combined processes of leading and motivating
Total quality management (TQM)
the coordination of efforts directed at improving customer satisfaction, increasing employee participation, strengthening supplier partnerships, and facilitating an organizational atmosphere of continuous quality improvement
buying behavior
the decisions and actions of people involved in buying and using products
Human Resources Planning
the development of strategies to meet a firm's future human resources needs
problem
the discrepancy between an actual condition and a desired condition
Profit Sharing
the distribution of a percentage of a firm's profit among its employees
strategic planning process
the establishment of an organization's major goals and objectives and the allocation of resources to achieve them
Performance appraisal
the evaluation of employees' current and potential levels of performance to allow managers to make objective human resources decisions
organizing
the grouping of resources and activities to accomplish some end result in an efficient and effective manner
SWOT analysis
the identification and evaluation of a firm's strengths, weaknesses, opportunities, and threats
personal income
the income an individual receives from all sources less the Social Security taxes the individual must pay
Compensation
the payment employees receive in return for their labor
Compensation System
the policies and strategies that determine employee compensation
Orientation
the process of acquainting new employees with an organization
Recruiting
the process of attracting qualified job applicants
Management
the process of coordinating people and other resources to achieve the goals of an organization
Job evaluation
the process of determining the relative worth of the various jobs within a firm
market segmentation
the process of dividing a market into segments and directing a marketing mix at a particular segment or segments rather than at the total market
controlling
the process of evaluating and regulating ongoing activities to ensure that goals are achieved
Selection
the process of gathering information about applicants for a position and then using that information to choose the most appropriate applicant
leading
the process of influencing people to work toward a common goal
Management development
the process of preparing managers and other professionals to assume increased responsibility in both present and future positions
motivating
the process of providing reasons for people to work in the best interests of an organization
marketing research
the process of systematically gathering, recording, and analyzing data concerning a particular marketing problem
Employee training
the process of teaching operations and technical employees how to do their present jobs more effectively and efficiently
business buying behavior
the purchasing of products by producers, resellers, governmental units, and institutions
consumer buying behavior
the purchasing of products for personal or household use, not for business purposes
Small-business development centers (SBDCs)
university-based groups that provide individual counseling and practical training to owners of small businesses
Customer Relationship Management (CRM)
using information about customers to create marketing strategies that develop and sustain desirable customer relationships
Place utility
utility created by making a product available at a location where customers wish to purchase it
Time utility
utility created by making a product available when customers wish to purchase it
possession utility
utility created by transferring title (or ownership) of a product to a buyer
a private lender.
A business seeking a loan through the Small Business Administration will actually be given a loan through
business plan
A(n) ____ is a carefully constructed plan for an individual starting a business.
Less than a week
About how much time does it typically take in the United States to establish a business as a legal entity?
Small firms produce two-and-a-half times as many innovations as large firms relative to the number of persons employed
Adamaris and Britney recently moved their small computer design company into an industrial building. They have filed for a patent on their latest invention and are working on two others. Which of the following statements is correct regarding small business and technical innovation?
government regulations
As a class assignment, business students were told to prepare a business plan for a business they would like to own. Which of the following is something that would not be included in the plan?
service stations
Automobile dealerships and ___ were the primary uses for franchises in the early days of franchise agreements.
National Franchise Mediation Program
Because of disputes between franchisors and franchisees, a program was instituted to arbitrate them. What is the name of that program?
Distribution
Brenda has a small grocery store in a residential neighborhood where she primarily sells staples to the people who live in the area. Which of the following best describes the industry she operates in?
small-business institute.
Business students at universities can work together to provide management counseling to small businesses in their community. This program is part of the
This is a franchise and the franchisor has sent its inspector to ensure the business is operated according to the franchise license.
D'Anton owns a fast food business and takes great pride in its appearance, cleanliness, and customer service. One morning, an individual wearing a badge that identified him as an inspector entered the business and asked permission to inspect. Without hesitation, D'Anton permitted him to inspect. The individual was not from any government agency. What is the most likely explanation for D'Anton's actions?
are profit-making organizations.
Companies that invest in small businesses
Success will cause another outlet to be opened nearby.
Darrel's Donuts has been operating quite successfully for two years. Darrel is considering expanding the business by franchising. Which of the following is not an advantage of a franchise?
U.S. Commercial Service
Dwight has a small business and would like to sell his products overseas. Which of the following organizations can assist him?
500
For Jerry's Automobile Parts Fabricating business to qualify as a small business by the Small Business Administration, it can employ no more than ___ people.
$7 million
Fran's Fancy Frocks, a retail clothing store, may not exceed ___ in annual sales to qualify as a small business
They are franchises.
Genesis and Iziegbe are having a mother-daughter day together. Iziegbe took Genesis to Burger King for breakfast followed by a massage at Massage Envy, a fruit drink at Juice It Up, and getting nails done at Red Persimmon. They finish their day with frozen yogurt from Yogurtland. What do these businesses have in common?
the entrepreneurial spirit.
Hamilton has wanted to start a business of his own since he was a small child. This desire is referred to as
teen
High-tech ___ entrepreneurship is exploding
small businesses
In the United States, ___ account(s) for 97.7 percent of all identified exporters and produce(s) 33 percent of export value.
the reality that small-business workers are more innovative than workers in large businesses.
Jeff Katz, the founder of Orbitz, Inc., when speaking about new businesses recently said, "A flat checkbook is the mother of invention." He was referring to
36 percent
Jennifer would like to open her own business. According to the SBA, in 2017 women were 51 percent of the U.S. population, and owned at least ___ percent of all small businesses.
What are the goals for the business?
Jeremy has written a business plan for the business he would like to open. He states in the plan, "This business will serve over 400 customers by the end of the year and employ ten full-time employees." Which major question in his business plan does this statement address?
have the ability to quickly adapt to change.
Richard has a motorcycle and ATV store. His customers often talk about trikes. Richard orders some Harley-Davidson Trikes for his inventory. His actions are possible because small businesses
Service Corps of Retired Executives
SCORE is the acronym for
$2.0 million.
Samantha would like to get a small business loan from the SBA. What is the largest guaranteed loan she could be granted?
$30,000
Stuart has $50,000 to start a new business. This is higher than _____, the amount the Census Bureau and Federal Reserve say 50 percent of all new businesses begin with.
Eight.
Sylvia has an SBA-guaranteed business loan for the average life of such loans. How many years will she have to repay the loan?
a course that surveys eight to ten areas of business management.
The Small Business Administration offers many courses to individuals interested in going into business or improving his or her business. The most popular SBA course is
small business
The business that represents 99.9 percent of all employers in the United States is a
Subway.
The franchise with the most outlets in the United States is
28 million
There are approximately ___ businesses in the United States.