Ch 5 reading questions

Excluding farm workers the service sector accounts for what percentage of jobs in the United States

80%

Tony is interested in staring a subway in the Portland. The license to sell another's products or use another's name in business is referred to as

A franchise

An agreement by which a financial institution promises to lend a business a predetermined sum on demand is called ______

A line of credit

A business plan outlines what?

A step by step explanation of how the business will achieve its goals A precise statement of the rationale for the business

All of the the following are characteristics of a small business except

A. It does not employ more than 500 people B. It's independently owned C. It's independently operated D. It's dominated in its competitive area D. Is correct

A well written business plan will include which of these items?

An estimate of income and expenses An analysis of the competition An explanation of the business

A would be entrepreneur might choose retailing services and high technology industries to start their businesses because these fields

Are relatively easy to enter

For a small business entrepreneur independence refers to

Being your own boss

A _____ is a precise statement of the rationale for the business and a step by step explanation of how it will achieve its goals

Business plan

Rocco owns a small condo in downtown Portland the same city where he is opening a small coffee shop specializing in only organic roasts. He is using the equity of his condo as _______ to obtain a loan from his local bank

Collateral

SBA is the government agency that advises and assists small businesses by providing which of the following

Consulting on improving operations Management assistance Training for owners and their employees

Daniel wanted to start his own small business. After spending his own money on marketing research he wants his pal chase to be his accountant since he is lacking skills in that area. They spend a few months writing a business plan when then they presented to a bank to obtain funding. What does this example illustrate

Daniel understands the steps needed to start a small business

Financial assistance by the SBA for a new startup company is a form of ______ financing

Debt

What are two types of nonstore retailing

Direct marketing Direct selling

Nadia decided to start a business selling her handmade jewelry and is doing parties at her friends and families houses. She does this to display her jewelry to potential customers. This is called.....

Direct selling

A reduction in management layers corporate staff and work tasks in order to make a firm more flexible and resourceful

Downsize Right size

T or f rarely If ever does an owner of a new startup business invest his or her own money in venture

F

T or f technological advances and an increase in service exports have created additional challenges for small companies to expand to their operations abroad

F

Which of the following relates to a successful business plan

Flexible

Facts about innovation and small business

Franchises make up about 2% of small businesses Small firms produce more than half of all innovations Many of the US largest businesses started as small firms that used innovation as a path to success

Franchises offer people staring a business the advantage of a recognized name management assistance and

Greater chance for success

Businesses that innovate and open new markets in the field of computers biotechnology and robotics are called

High technology

The ______ population represent over 17 percent of the total U.S. workforce with retailers employing the most from this group

Immigrant

Creative people who work as entrepreneurs within corporations are known as

Intrapreneurs

A retail business would be especially attractive to an entrepreneur for what reasons

It requires low initial financing It's a field that is relatively easy to enter

Small businesses often require _____ money to start and maintain than do larger businesses

Less

An entrepreneur that is interested in nonstore retailing as a business opportunity should know that the cost to enter this type of business is

Low

A small business makes goods and customizes it's products to meet specific needs and wants. This business is a

Manufacturer

An entrepreneur with five or fewer employees is called a______

Microentrepreneur

The united states largest living generation are called

Millennials

What is considered equity financing

Personal laptop Savings account of the owner The accumulated value in a life insurance policy

Most typical functions of a wholesaler

Planning and negotiating for supplies Distributing Promoting

_____ likely affects a company's reputation (through lack of funding) more than anything else at least initially

Poorly managed growth

Which of the following is considered a shortcoming of owning a franchise

Possible market saturation

Women own more than 9 million businesses in the US. Found success in which of the following areas

Professional services Retail Communication Administration services

economic turbulence and small businesses

Provides both opportunities and threats

Advantages of buying an existing business

Reduces some of the guesswork inherent in stating a new business from ground up Built in network of customers suppliers and distributors

How a firm is perceived by its various stakeholders is its

Reputation

Restaurants, boutiques, and hardware stores are examples of

Retailers

The SBA has organized _____ on almost 500 university and college campuses in the US I which seniors graduate students and faculty provide onsite management counseling

SBIs

Which of the following are volunteer agencies funded by the SBA to provide advice for owners of small firms

SCORE ACE

In a ______ economy entrepreneurs earn income by renting out an underutilized resource such as lodging or vehicles

Sharing

Which of the following is in regards to flexibility and small business ownership

Small business owners can make and execute decisions quickly

Which of the following is an independent agency of the federal government that offers managerial and financial help to small businesses

Small businesses administration SBA

These two statements are true regarding the role of the small business in the US economy

Small businesses employ nearly half of all private workers More than 99% of US firms are classified as small businesses

A growing trend among small businesses is ____; which involves individuals who use entrepreneurship to address social problems

Social entrepreneurship

T or f in order to save the expense of maintaining various departments small business owners may hire other firms to supply services on an as need basis

T

Due to changes in_______ small companies can better customize their services quickly for international customers

Technology

The most important source of funds for any new business comes from_____

The owner of the business

_______ is when suppliers allow a business to take possession of needed goods and pay for them at a later date or in installments

Trade credit

When two companies engage in bartering they

Trade products that they make with each other

________ or the lack of funding to operate a business normally can cause a business to fail no matter how good the small business concept is

Under capitalization

Which of the following are common primary reasons that small businesses fail

Under capitalization Inability to cope with growth Managerial inexperience

The lack of funds to operate a business in a normal and potentially successful manner is known as ______

Undercapitalization

People or organizations that agree to help fund a business provided they receive an ownership interest or stock in a firm ate called_____

Venture capitalists

____ supply products to industry retail and institutional users for resale or for use in making other products

Wholesalers

Concerns of small business owners that can contribute toward high stress levels

Worries about competition Changing market demand Employee problems

What is an example of a market niche

Young male thrill seekers who enjoy rock climbing

born between 1946 and 1964 Many small businesses do not actively pursue this group but many experts believe it to be the market of the future

baby boomers

____ is the process of creating and managing a business to achieve desired objectives

entrepreneurship