BUSAD250 Module 2
Most small businesses employ __________ employees.
0
Which of the following best characterizes a lifestyle business?
A business built around the needs of an individual or family.
Which of the following best describes a business plan?
A document that summarizes a proposed business venture, its goals, and plans for achieving those goals.
______________ are people who invest very small amounts of personal resources early in a new business's life in the hopes of eventually selling a percentage of the company for a profit.
Angel investors
Which of the following provide new businesses with a variety of services—such as counseling and financial support—that a company needs to get under way?
Business incubators
Which of the following terms describes various accommodations containing small companies and offering support services during a company's early growth phases?
Business incubators
Which of the following is true about a business incubator?
Business incubators provide facilities to start-up companies.
Which of the following summarizes an anticipated company project along with its objectives, and strategies for accomplishing particular objectives?
Business plan
Which one of the following statements is NOT an accurate reflection of the definition and functions of a business plan?
Business plans are written soon after the company is launched, when the company is seeking funding, and when it is up and running.
Which one of the following private sources of funding is extremely risky?
Credit cards and personal lines of credit
Which term defines a company seeking capital from the community for various business ventures, investments, or loans?
Crowdfunding
____________ involves pursuing investment from the public for business ventures, investments, or loans.
Crowdfunding
What is a specific type of machine learning that uses layers of artificial neural networks to mimic brain functions?
Deep learning
What system uses layers of artificial neural networks to process incoming data and become more accurate?
Deep learning
_____________________ is the optimistic, progressive aspiration to establish lucrative, sustainable business ventures.
Entrepreneurial spirit
Which of the following is the best explanation of what entrepreneurs do?
Entrepreneurs identify, evaluate, and exploit new business opportunities.
Which section of the plan should address how investors can cash out or sell their investment?
Exit strategy
Which of the following enables the buyer to use a larger company's trade name and sell its goods or services in a specific territory?
Franchise
Dan has developed an smart phone application that lets people know when they are most likely to be bitten by a mosquito. Which of the following best describes Dan in this context?
He is an entrepreneur.
Which of the following is NOT a common category of private financing?
IPO
Which of the following is a firm's first offering of the availability of stocks for purchase?
Initial public offering
Which of the following is true of an executive summary?
It is a shortened version of a business plan for quick presentation purposes.
The following are start-up companies in different situations. Which business is at a greater risk of failure?
Jelly Works faces an early surge in sales with insufficient inventory on hand.
What term refers to the general capability of computers to learn?
Machine learning
The following are start-up companies in different situations. Which business is at a greater risk of failure?
March Company has been careful not to borrow a lot of money to gets its business started, only the bare minimum.
______________ represent establishments that offer minor quantities of capital to company owners who might not be eligible for conventional loans.
Microlenders
Which aspect of a business plan explains the intentions of the company and what it plans to accomplish?
Mission and objectives
Which of the following can put a business at a greater risk of failure?
Poor inventory control
________________ is the initial collection of resources expended in order to establish a company.
Seed money
Which group was created by the SBA to make smaller investments and consider businesses others might not want to finance by offering loans, venture capital, and management assistance?
Small Business Investment Companies (SBICs)
Which term defines a company that is generally not a leader in its industry; is individually owned, managed, and maintained; and characteristically has fewer than 500 employees?
Small business
Which of the following is a way that smaller companies differ from larger companies?
Small firms have a narrow focus.
Which of the following is true of small businesses?
They are major employers.
Which best describes most small businesses?
They have no employees.
Which of the following is a trait of successful entrepreneurs?
They innovate to realize a vision.
Which of the following is true about microlenders?
They lend smaller amounts of money to business owners who might not qualify for conventional bank loans.
Which of the following is NOT a major contribution of small businesses?
They meet the needs of smaller organizations.
A(n) _________________________ is a group of individuals with particular knowledge or important connections that assists a company owner with the evaluation of strategies and decision making.
advisory board
A collection of individuals with specific skills or significant connections who assist a company owner with the evaluation of strategies and decisions are known as _______.
advisory boards
Companies with solid growth potential may seek public funding, which can be secured from ________.
an initial public offering (IPO)
An example of a reliance on machine learning is _________.
a self-driving car
Jim, a businessman, wishes to start a chain of grocery stores. However, all the banks he approaches turn him down due to a lack of direction in his ideas. Finally, Sheila, a bank manager, asks Jim to draft a formal document that outlines the nature of his business, its short-term and long-term goals, and the potential for its success. Sheila advises him to draft this document and approach the bank once more. The formal document that Jim is advised to draft is known as a __________.
business plan
A(n) _________ summarizes an anticipated company project, including the project's objectives and strategies for accomplishing those objectives.
business plan
Sean, operates a store that employees five people. One day Sean noticed that many students from a college in the neighborhood purchased pre-made sandwiches and food from his store. So he decided that setting up a fast-food kiosk near campus would be a good opportunity for him. Due to other commitments, he handed over the store to his wife to run and now he does not take part in its day-to-day management. When Sean set up the kiosk, he became a(n) __________.
entrepreneur
The optimistic, progressive aspiration to establish lucrative, sustainable business ventures is known as ________.
entrepreneurial spirit
A(n) ____________ is an agreement in which an entity acquires permission to retail goods and utilize certain features of another business's structure.
franchise
A(n) ____________ is a business that authorizes components of its business structure for use by other businesses for an initial start-up fee and monthly royalties.
franchisor
"Intrapreneurship" is difficult to implement for all of the following reasons EXCEPT _____________.
innovating within a larger organization is often much easier
Entrepreneurial effort within a larger organization is referred to as _____.
intrapreneurship
Businesses that are built around the personal and financial needs of an individual or family are called _________.
lifestyle businesses
The general capability of computers to learn is known as _______.
machine learning
The ________ section of a business plan explains the purpose of the business and what it hopes to accomplish.
mission and objectives
Many cities and states have a(n) ____________ that helps companies succeed and contribute to the local or regional economy, specifically.
office of economic development
The right to sell trademarked goods purchased from the franchisor is the result of owning a __________.
product franchise
FreshGrow, an organic vegetable market, is not a leader in its industry; is individually owned, managed, and maintained; and has 32 employees. FreshGrow is best described as a ______________.
small business
Compared with starting a new business, buying an existing business has both advantages and disadvantages. One of the disadvantages of buying an existing business is ________.
the potential for a considerable amount of financing
Financiers who offer capital to support start-up companies in order to gain a percentage of ownership, with the goal of eventually turning the company around and selling it for a profit, are called ____________.
venture capitalists