chapter 5 small business

Shere Vincente operates a travel service that specializes in arranging trips for​ women, giving special attention to their needs and preferences from security and comfort to activities and events designed to appeal to her target customers. Vincente is pursuing which type of competitive​ strategy?

Focus

Which component of intellectual capital consists of the​ talents, creativity,​ skills, and abilities of a​ company's work force and shows up in the innovative​ strategies, plans, and processes the people of the organization develop and​ pursue?

Human

are negative internal factors that inhibit a​ company's ability to accomplish its​ mission, goals, and objectives.

Weaknesses

One report forecasts increasingly​ fragmented, niche markets and​ customers' growing demand for customized products. Small companies pursuing which of the following strategies are most likely to benefit from this​ scenario?

focus

Creating a meaningful vision for a business is important because​ it:

All of these are correct.

Which one of the​ "five Cs of​ credit" includes assets that an entrepreneur pledges as security for repayment of a​ loan?

Collateral

When potential lenders and investors consider this component of the​ "five Cs of​ credit," they are evaluating factors that are beyond the​ entrepreneur's control, such as the overall condition of the​ economy, the intensity of competition the business​ faces, and other factors.

Conditions

The Ice Hotel in Sweden is unlike any other hotel in the world. Everything in the​ hotel, including the​ walls, the​ decorations, the​ glasses, and even the​ beds, is made out of ice. Despite​ below-freezing temperatures, thousands of guests pay up to​ 11,305 Swedish Kroner​ (about $1,350) for the adventure of staying there. The Ice Hotel is pursuing which type of competitive​ strategy?

Differentiation

Which of the following statements about creating a business plan is false​?

Entrepreneurs who create business plans and realize that the business just​ won't work have wasted valuable time and resources.

Which of the following statements about writing a business plan is true​?

In addition to providing all of the relevant facts and analysis of a business​ opportunity, the best business plans also include a compelling story.

Many companies use balanced​ scorecards, dashboards that include a composite both financial and operational​ measures, to gauge a​ company's performance. Which perspective of a balanced scorecard focuses on the factors and processes at which a business must excel if it is to​ succeed?

Internal business perspective

are factors that vary from one industry to another and determine a​ company's ability to compete successfully in the marketplace.

Key success factors

Which of the following elements is not recommended as part of an​ entrepreneur's elevator​ pitch?

Profit - The amount of profit the company expects to earn in its first year of operation.

Which test of a business plan involves proving that a market for the product or service really does exist and that the company can produce the product or provide the service at a reasonable​ cost?

Reality

one of the​ "five Cs of​ credit," is a synonym for cash flow.

capacity

The value proposition that sets a small business apart from its competitors and gives it a unique position in the market that is superior to its rivals is​ its:

competitive advantage

The unique set of capabilities that a company develops in key​ areas, such as superior​ quality, customer​ service, innovation,​ responsiveness, and​ others, that allow it to vault past competitors is known as the​ company's:

core competencies

In a business​ plan, the​ ____________ is the broadest expression of a​ company's purpose, defines the direction in which the company will​ move, and serves as a thesis statement for the entire business plan by answering the​ question, "What business am I​ in?"

mission statement

Mike owns a shop that specializes in​ submarine-style sandwiches,​ fries, and side​ items, including salads. Across the street is a​ quick-service franchise affiliated with a national chain that sells burgers and​ fries, but its menu also includes chicken​ sandwiches, fish​ sandwiches, and onion rings. To​ Mike, the franchise represents a​ _________ competitor.

significant

The most common reason banks give for rejecting small business loan applications​ is:

undercapitalization and too much debt.

Which of the following statements concerning making a business plan presentation is false​?

The amount of time an entrepreneur has to present his or her plan usually is at least 40 minutes to an hour.

Mike owns a shop that specializes in​ submarine-style sandwiches,​ fries, and side​ items, including salads. Less than a mile away is a submarine sandwich shop affiliated with a national chain whose product line is very similar to​ Mike's. To​ Mike, this nearby franchise represents a​ _________ competitor.

direct