Test 2-take by saturday morning! testing center!

_______ planning provides comprehensive long-term direction to help a business accomplish its mission.

Strategic

_________ are the means by which the mission and objectives sought by a small business are achieved.

Strategies

If a firm has good resources that are effectively used, it has a(n):

Competitive edge

Many franchises are merging health care with what other industry?

Fitness activities

A onetime fee paid by the franchisee to the franchiser for the business concept, rights to use of trademarks, management assistance and other related services from the franchiser is also known as:

Franchisee fees

A marketing system whereby an individual owner conducts business according to the terms and conditions set by the franchiser is known as:

Franchising

When choosing a franchise, be careful with franchisers who:

Guarantee a return on your investment

A ______ security matures in one to five years.

Intermediate-term

A ______ is a contract that permits use of someone else's property for a specified period of time.

Lease

The system of gathering, recording, classifying, analyzing and interpreting data related to marketing of goods and services is also known as:

Market research

Which of the following is NOT set by operational planning

Mision

The process of finding a small but profitable demand for something and producing a custom-made product for that market is also known as:

Niche marketing

_________ give short-term direction to the business and serves as a benchmark for measuring performance.

Objectives

Equity financing results in the company being controlled by:

Owners

___________ should be the first management function performed:

Planning

____________ is the process of setting objectives and devising courses of action to achieve those objectives.

Planning

Venture capitalists:

Prefer to back fast growth industries

This style of franchise grants the franchisee the right to sell a widely recognized product or brand:

Product and Trademark Franchising

This document, sometimes called an offering circular, is a document that provides information to possible new franchisees on 20 items required by the Federal Trade Commission

Prospectus or Disclosure Agreement

Many successful small business owners start their own business because they want:

Recognition for personal success

Small business entrepreneurs, who are fearful of staring their own business, might buy an existing business because:

Revenue and profits are being generated and goodwill already exists

A new kind of financing that allows small businesses to cut through legal barriers and facilitates buying and selling investments are:

SCOR offerings

This organization of retired but active managers from all walks of life help small business entrepreneurs develop their business idea:

SCORE

______ assist socially and economically disadvantaged businesses with venture capital.

SSBICs

The SBA is also known as:

Small Business Administration

All of the following are names that describe the big-name franchise operations which offer both company's products under the same roof except:

Small Business Branding

What Organization, that provides counseling, training and technical assistance in small business management, is partially funded by the SBA?

Small Business Development Center (SBDC)

SBIC stands for:

Small Business Investment Company

Marketing research using _______ gathers new information through research.

Small business managers do some form of marketing research every time they interact with customers.

A 199 a law required what government agency to provide clients with information on the risks and benefits of franchising:

The Small Business Administration (SBA)

Buying a franchise to start your own small business might be chosen for all the following reason except:

The business concept will need my assistance in how to set up the systems of operations

An independent businesses person who agrees to sell the product according to the franchiser's requirement is known as:

The franchisee

______ involves giving special consideration to the needs, desires, and wishes of present and prospective customers.

The marketing concept

______ defines the present business scope and broadly describes the organization's present capabilities, focus and activities.

The mission statement

A company's computer services is one of the company's _________ resources.

human

_______ is a type of financing that arises spontaneously in the normal course of operating the business.

trade credit

Materials used to produce products are

variable expenses

_____ (is) are the current assets, less current liabilities, that are used by a firm to produce goods and services.

working capital

______ assets are assets of a relatively permanent nature.

fixed

which of the following statements regarding a business plan are true

1) A business plan reduces a small business owner's chances of failing 2) The plan is a money-raising tool to attract venture capital 3) A business plan is used for continuing operations of the firm Correct Answer 4) All of the above-answer

Which of the following statements is (are) true descriptions of who should write the business plan?

1) If the owner is the only one involved in the business, he or she should write the business plan 2) The business plan should be a team effort if two or more people own the business Both of these are the answer

Asset-based financing:

1) accepts as collateral the assets of the firm in exchange for the loan. 2) must be repaid. 3) are a legally enforceable debt. Correct Answer 4) all of the above- is the answer

Financial planning involves

1) estimating income and expenses 2) estimating initial investment 3) locating sources of funds All these choices is the answer

SWOT analysis:

1) is used to scan the business environment 2) is organized into the form of a matrix BOTH CHOICES

Business incubators:

1) provide shared space, shared services, and shared overhead to start-up companies. 2) assist young enterprises until they are healthy enough to go out on their own. both answers are right

An SBA-guaranteed loan can be used to:

1) purchase land, buildings, or equipment. 2) provide working capital. 3) refinance existing debts. all of the above- are correct

Managers neglect planning because:

1) they lack knowledge of how to plan 2) they fear the weaknesses planning may reveal 3) they have little or no time to plan all of the above--ANSWER

The Small Business Administration:

1) helps small firms find financing. 2) guarantees loans to small businesses. 3) matches each dollar an SBIC puts into a small business loan. all these are correct

Marketing research:

2) can be used to identify customers for the firm's products. 3) is part of the company's overall marketing system. both are the answer

The oral presentation of the business plan:

2) should demonstrate that the business plan has a marketable product 3) should use visual aids for financial projections both these answers are right

One survey found what percentage of U.S. franchises operated internationally?

20%

An effective business plan should be about _______ pages long.

25-30

Franchises account for what percent of all retail trade?

41%

Deciding on what product to take to the marketplace might be found by all of the following except:

Asking a college student

_____ consist(s) of two companies exchanging items of roughly equal value.

Barter

________ are detailed plans of the results expected from operations

Budgets

This style of franchise grants the franchisee the right to market the product and trademark and use a complete operating system:

Business Format Franchising

To get into business, a new entrepreneur can start his own business, buy an existing business or:

Buy a franchise

______ are financial arrangements that provide tax advantages by selling shares to workers.

ESOP's

The best, three prong approach to studying the market for business opportunities would include all of the following except:

Estimate your potential to get a small business loan

Venture capitalists rely heavily on the ______ in making investment decisions.

Executive summary of the business plan

The entrepreneurial process begins with the idea for a new:

Product

What market condition has fueled the growth of convenience franchises?

Two-career families

______ are wealthy individuals who invest part of their assets in high-risk, high-return investments.

angel capitalists

The external environment consists of:

opportunities and threats

Which of the following is NOT an example of strategic planning?

staffing the assembly line

In a ________ all parts of the business work in unison.

system

Expenses that do not vary in value as sales volume rises or falls are called ________.

fived

An agreement whereby an independent business person is given exclusive rights to sell a specified good or service is known as:

A franchise

The continuous fee paid by the franchisee to the franchiser based on a percentage of the franchisee's gross revenue is known as:

A royalty fee

What local source can help small business entrepreneurs better understand the area's needs and have a vested interest in expanding business opportunities?

Chamber of commerce

_________ is the amount of cash available at a given time to pay expenses.

Cash flow

Expected revenues should be included in which part of the business plan?

financial data

Using fixed charge funding to increase the return to common stockholders is:

financial leverage

Choosing the business to enter as a new entrepreneur requires that you concentrate on:

What you would like to do- not on what someone else wants you to do

_______ project working capital needs by estimating what out-of-pocket expenses will be incurred and when revenues from these sales are to be collected.

cash budgets

A(n) ______ loan is backed by some physical asset other than land.

chattel mortgage

The primary source of loans to small businesses is:

commercial banks

The true owners of a firm are the ______ stockholders.

common

_____ give(s) the owner voting rights.

common stock

A _______ is some unique advantage a firm has over its competitors.

competitive edge

______ involves prodding businesses to improve the quality of their products and to expand consumer knowledge.

consumerism

Which of the following is NOT a method of marketing research?

credit magagement

______ financing comes from lenders who must be repaid.

debt

Which of the following statements regarding debt financing is NOT true?

debt financing creates owners

There are several reasons why small businesses use debt financing, in spite of the risks involved. Which of the following is NOT one of those reasons?

debt financing gives investors a voting interest

The role of _______ is to serve as a buffer that protects creditors from loss in case of financial difficulty.

equity financing

The _______ is the part of the business plan that outlines the entire plan, its major objectives and the expected results.

executive summary

In order to maintain control, the owner should

invest more personal funds than all other sources combined

A(n) ______ permits a business to borrow up to a set amount from a bank without red tape.

line of credit

A small business's long-lived assets, such as buildings, should be financed with:

long term loans

________ is the systematic gathering, recording and analyzing of data about the marketing of goods and services.

marketing research

The largest expense for companies selling products is usually:

materials and supplies

Once you decide to start a business you need to do extensive

planning

_______ are general statements that guide action.

policies

_____ stock has a fixed par value and fixed dividend payment.

preferred

The stockholders who have a superior claim to the firm's profits than other stockholders are the:

preferred stockholders

The marketing concept includes all of the following basic elements EXCEPT:

retail approach

A change in the number of competitors is a change in:

the external environment

With a business plan:

the information to be included is standardized but the format of the business plan is not