Business 101 (Chapter 6)

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

True

____ percent of the nation's new jobs are in small businesses

65

Micropreneurs

Entrepreneurs willing to accept the risk of starting and managing a business that remains small, lets them do the work they want to do, and offers them a balanced lifestyle

What advice would established entrepreneurs likely tell a new, would-be business owner? Multiple choice question. You don't need to hire an accountant if you can balance a checkbook. Make sure your business is not undercapitalized. Employees are plentiful; focus on your product instead. Location isn't as important as everyone says.

Make sure your business is not undercapitalized.

The section of the business plan that is designed to initially captivate and energize a potential financial investor would be the

executive summary

What are the three main factors addressed in a business plan?

goals, plans, and metrics for success

elect all that apply Among the hurdles small businesses must overcome in starting to operate globally are: Multiple select question. understanding cultural differences difficulty finding financing bureaucratic paperwork many shippers available to start shipping more quickly

understanding cultural differences difficulty finding financing bureaucratic paperwork

What term is given to individuals or companies that invest in new businesses in exchange for partial ownership in those businesses? Multiple choice question. Investment advisers White knights Venture capitalists Finance brokers

venture capitalists

Small Business Administration (SBA)

A U.S. government agency that advises and assists small businesses by providing management training and financial advice and loans.

Small business

A business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size (set by the Small Business Administration) in terms of employees or annual receipts

Business plan

A detailed written statement that describes the nature of the business, the target market, the advantages the business will have in relation to competition, and the resources and qualifications of the owner(s).

Which businesses need to write business plans?

All businesses should write business plans in order to create a framework for success.

Select all that apply What two tasks are important to complete when writing a business plan? Multiple select question. calculate how much money you need to start develop a Gantt chart analyze the competition develop a vision that sets a cultural tone

Calculate how much money you need to start. Analyze the competition.

Select all that apply A good business plan is between 25 and 50 pages long and takes many months to write. A comprehensive business plan will include which three items? Multiple select question. Executive summary Bank analysis List of all competitors Company background Cover letter

Executive summary Company background Cover letter

Entities organized to deliver support services to businesses during startup phase of operation.

Incubator

Service Corps of Retired Executives (SCORE)

More than 11,000 volunteers from industry, trade associations, and education who counsel small business at no cost.

Enterprise zones

Specific geographic areas to which governments try to attract private business investment by offering lower taxes and other government support

Select all that apply An inexpensive marketing research study may help you determine which of the following? Multiple select question. What is an effective strategy for reaching your target market How to lower the cost of your product or service Where to locate Whom to select as your target market

What is an effective strategy for reaching your target market Where to locate Whom to select as your target market

All consumers with unsatisfied wants and needs who have both resources and the willingness to buy are: Multiple choice question. located in a specific region a country's population customers a market

a market

Small Business Investment Company (SBIC)

a program through which private investment companies licensed by the SBA lend money to small businesses

An Internet-based marketing strategy that rewards businesses or individuals for each visitor or customer they send to a website.

affiliate marketing

What is included in a business plan? Multiple choice question. a listing of all potential funding contacts an analysis of the competition a public relations plan the trade secrets of the business operation

an analysis of the competition

What type of business relationship benefits both a trainee and a business owner and occurs when a trainee is hired to learn small-business management while assisting the owner in getting daily work done? Multiple choice question. enterprise zone sponsorship incubator apprenticeship

apprenticeship

Jason has prepared a comprehensive Blank______ which includes a cover letter, executive summary, company background, management team, financial plan, capital required, marketing plan, location analysis, manufacturing plan, and an appendix. Multiple choice question. business plan statement of operations vision statement action plan

business plan

Select all that apply All organizations require the following: Multiple select question. many employees capital planning information management

capital planning information management

Incubators

centers that offer new businesses low-cost offices with basic business services

Intrapreneurs

creative people who work as entrepreneurs within corporations Intrapreneurs use a company's existing resources to launch new products for the company

Geographic area in which business growth is encouraged by government through tax relief and other financial incentives.

enterprise zone

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. Multiple choice question. creative franchise business entrepreneurial

entrepreneurial

Accepting the risk of starting and running a business.

entrepreneurship

Select all that apply Select the characteristics of an intrapreneur. Multiple select question. he or she generates profits by leveraging a firm's human financial and physical resources. someone who uses company's resources to launch new products a creative person who works within a corporation a person who assumes the risk of starting a business.

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

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

Since entrepreneurs can't compete with larger firms' pay and benefits, what are three ways they can motivate employees? Multiple select question. reduce employee empowerment maintain good employee relations provide more challenging opportunities to learn be respectful of employees' opinions increase employees' workload

maintain good employee relations provide more challenging opportunities to learn be respectful of employees' opinions

Select all that apply 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 Blank______. Multiple select question. travel to other area businesses lengthen their daily working hours manage customer records follow the daily sales and expenses

manage customer records follow the daily sales and expenses

Which section of the business plan details and outlines the authority structure that exists inside the company?

management plan

Classes on small business and entrepreneurship offered at a local community college offer prospective business owners the chance to Blank______. Multiple choice question. recruit instructors who will help write your business plan form a network of students who might be willing to invest in your business meet with experienced entrepreneurs to get advice and form support networks present business ideas to an instructor to see if it is worth pursuing

meet with experienced entrepreneurs to get advice and form support networks

A small business is defined as: one that meets certain standards of size in terms of employees or receipts one whose stock is traded on the open stock market one that is not dominant in its field one that is independently owned and operated

one that meets certain standards of size in terms of employees or receipts one that is not dominant in its field one that is independently owned and operated

Two advantages small firms have over large firms include more personal customer service and the ability to respond quickly to Blank______. Multiple choice question. employee requests for higher wages large increases in demand opportunities employee benefits needs for better benefits

opportunities

Market

people with unsatisfied wants and needs who have both the resources and the willingness to buy

Although there are many functions that are important in both the start-up and management phases of the business, what two functions are considered to be primary concerns? Multiple choice question. planning and financing production and sales hiring and human resource development accounting and marketing

planning and financing

Some common causes of small business failure include: Multiple select question. starting with too little capital underpricing or overpricing goods or services no experience in that business or industry overestimating time needed to build the business

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

Select all that apply What two items are described in a business plan? Multiple select question. the target market the resources and qualifications of its owner(s) a demand forecast of employees the advantages of using a chosen bank

the target market the resources and qualifications of its owner(s)

Why should Mary Ann and Nana create a business plan?

to provide an overall road map of how to start the business and to notify competitors they will be entering the market