chapter 5 business

a business can be classified as a "small business" if it has fewer than

500 employees

during the first five years of operation, about ______ of small businesses fail.

80 percent

who would NOT be considered an entrepreneur?

a doctor who is employed by a hospital

which is NOT a small business?

a fast food chain

a business plan must follow ______

a logical format

people become entrepreneurs for ______ reasons besides making money.

a variety of

what is the most important reason many small businesses fail?

entrepreneurs sometimes don't start with good financial planning

*entrepreneurs start a business in an area that is not similar to their experience

false

*knowing about business only benefits you as an employee, not a consumer

false

*there are 10 parts of a business plan

false

a virtual business acts like a business, but its not a real business

false

a plan presenting financial forecasts for the business

financial plan

which of the following is NOT on the checklist for starting a venue?

how will I produce?

which of the following is NOT a characteristic of successful entrepreneurs

irresponsible

what is a characteristic of the executive summary in a business plan?

it tells the most important points of the business plan

research of the potential business's industry

market analysis

the business plan section that includes demographic data about the target market and business location is called the

market analysis

the business plan section that presents research about the company's customer profile is called the ____

market analysis

how a company will make customers aware of its products/ services

marketing plan

what is the immediate future of virtual, or online, businesses?

more and more are coming on the scene

reasons to be an entrepreneur include all except

not wanting to work long hours

most business in the United States are owned and operated by

one person

a plan of the business processes that result in production and delivery of product or service

operational plan

which part of a business plan describes management and tells who will run the firm?

organizational

the business plan section that identifies trends and growth within the industry is called the industry

overview

a vision statement

related to the scope and purpose

which is NOT a reward of entrepreneurship?

risking capital resources

which would most likely describe a successful entrepreneur?

self-starter

______ businesses are the principle source of new jobs in the United States.

small

businesses that are owned and operated by one person is called

sole proprietorship

the most common form of business in the United States is

sole proprietorship

what does a mission statement do?

tells the major goals of a business

what is true of a long-term investment?

the value of the investment fluctuates over time.

which of the following is NOT a characteristic of an entrepreneur

timid

what is the most important reason for having a business plan?

to help you focus on how to succeed in your new venture

*in the marketing plan section, the market analysis includes research about the customers

true

the length of an executive summary should be limited to

two pages

what is a corporation?

a business with many owners

a business plan is a written description of a new business venture that describes all ______ of the business

aspects

why do people have trouble getting money to start their own businesses?

banks are concerned that they won't be repaid.

most successful entrepreneurs have similar

characteristics

in a business plan, the size, scope, and type of business is explained in the ______ .

company description

what other piece of the business plan is related to the market analysis?

competitive analysis

the business plan section that identifies likely risks to the business is called the ____

contingency plan

the first page of a business plan

cover page

when entrepreneurs find new ways to solve old problems they demonstrate their

creativity

which is often especially important to a small business?

creativity

before starting a particular business, an entrepreneur needs to determine if there is enough ______ for the product.

demand

a new business undertaking involves risk and is called an(n)

venture

Internet businesses are often called ______ businesses.

virtual

company values and beliefs are established in the

vision statement

which of the following is NOT on the checklist for starting a venture?

where will I locate my business?