Intro to Business Ch 6
500
According to the Small Business Administration a small business is an independent business with fewer than how many employees?
high school
Almost all people starting small businesses have graduated from what?
innovation
An invention or creation that is brand new.
no
Are all people that own a business considered an entrepreneur and does all entrepreneurship opportunities come from inventions.
start-up financing
The amount of money needed to open a business.
preparation
The most important step in starting a business is what?
entrepreneurship
The process of starting, organizing, managing, and assuming the responsibility for a business.
sales forecasts
This would not be a component of the operations plan section of a business plan?
$990 billion
U.S. businesses with a single owner and no staff account for more than _________ in annual sales.
Small Business Administration
U.S. government agency that helps small business owners obtain financing and other support for their companies.
give customers more individual attention
What advantage do small businesses have over large businesses?
professional, scientific, technical services, retail, construction, real estate, transportation, agriculture
What are some common categories of small businesses?
1. low sales 2. lack of capital 3. higher than expected expenses 4. competittive pressure 5. owner is unprepared to manage the business 6. business requires more time than the owner can commit to 7. poor recordkeeping 8. poor location
What are some reasons businesses started by entrepreneurs commonly close?
Money saved by the entrepreneur and that of family and friends is the most important to get the business started. There is also venture capital and loans.
What are types of funding for new businesses and which is the most important?
gather and review information
What is the first step in developing a business plan?
description of the business
What part of the business plan addresses short and long term goals for the business?
60-80 percent
What percentage of new jobs in the U.S. are created by small businesses?
government regulations
When starting a new business it is important to have information about competitors, customers, and what?
personal and business loans
Where does most of the money needed to start a new business come from?
It forces the owner to think about important activities, the time it will take, and the cost. It can show them potential problems and give a guide to keep the business on track.
Why is it important for all small business owners to create business plans?
location
_________ is important to small retail businesses because customers will stay away if it isn't easy to find, they don't want to travel long distances to find what they need and retailers need good customer traffic to survive.
location
____________ is a common reason small businesses fail.
inventory
Products or raw materials a business keeps on hand to do business.
customers
Small business owners usually get direct information from their ______ about what they like and dislike.
half
Small businesses account for more than _________ of the U.S. GDP each year.
entrepreneur
Someone who takes a risk in starting a business to earn a profit.
improvement
A designed change that increases the usefulness of a product, service, or process.
business plan
A written description of a business idea and how it will be carried out and is usually required when a business owner needs help from others to finance a new business?
yes
Can business plans be revised or updated once they've been written?
educational
Entrepreneurs come from all age categories and _________ backgrounds.
one year
How long does it typically take to develop a business plan?
less than one year
How long is short term financing?
close
In the U.S. nearly as many small businesses ________ as begin each year.
35%
In the U.S. women own what percentage of small business?
proprietorship
In what type of business would only one person supply the money to help start a business?
Service Corps of Retired Executives
Retired local business people who volunteer their services to counsel and mentor new business owners are members of what?
small business
Is it easier for a small business or a large business to meet the precise needs of a customer?
unimportant
Is living in a major U.S. city an important or unimportant factor in becoming an entrepreneur?
operates in one or very few locations
It serves a small market, the owner is usually the manager, and what are all characteristics of a small business?
long-term financing
Money needed for the main resources of a business that will last for many years.
short-term financing
Money needed to pay for the current operating activities of a business.
venture capital
Money provided by large investors to finance new products and new business that have a good chance to succeed.
500 thousand
More than how many new businesses are created in the U.S. every year.
professionals such as bankers, lawyers, and accountants
Most successful small business owners establish good relationships with who?
lose money
Out of all new businesses about 1/3 are profitable, 1/3 do not make a profit but continue to operate, and 1/3 do what?
over 50%
Over a 10 year period about how many new businesses will be discontinued?
