Business & Marketing Chapter 6 Quiz

plan

A business ________ is a written description of a business idea and how it will be carried out.

entrepreneur

A(n) ______ is someone who takes a risk in starting a business to earn a profit.

c

Entrepreneurs a) must have a very low tolerance for ambiguity b) almost never own their first business while in their teens c) come from all age categories and educational backgrounds d) must have a business degree to be successful

D

If you start a new business, you need information about a) competitors b) government regulations c) customers d) all of the above

b

In the united states, women own this percentage of small businesses. a) 25 percent b) 35 percent c) 50 percent d) 75 percent

D

Location is important to small retail businesses because a) most retailers need good customer traffic to survive b) many potential customers will stay away if the business is not easy to find c) customers generally do not want to travel long distances to find what they need d) all of the above

short-term

Money needed to pay for the current operating activities of a business is referred to as _____ financing

A

Of all new businesses a) about one-third are profitable, one-third to not make a profit but continue to operate, and one-third lose money b) about one-half are profitable, one-quarter do not make a profit but continue to operate, and one-third lose money c) about three-quarters are profitable and one quarter lose money d) about one-quarter are profitable and three-quarters lose money

customer analysis

Part of the business plan that discusses sales forecasts and the location and number of potential patrons.

description of competition

Part of the business plan that discusses the industry characteristics and condition of the economy

financial plan

Part of the business plan that discusses your projected income and costs

friends/family

Personal savings, _______, venture capital and bank loans are the sources of income used to start a business.

inventory

Products or raw materials a business keeps on hand to do business is referred to as _______

A

Scrubbles laundry detergent has been on the market for years. The manufacturer of Scrubbles recently added a new ingredient to give the detergence extra cleaning power. This is an example of an a) improvement b) invention c) innovation d) opportunity cost

C

Short-term financing is obtained for a period less than a) three months b) six months c) one year d) two years

A

Small business owners a) usually get direct information from their customers about what they like and dislike b) have less frequent contact with their customer than large businesses c) rely heavily on consumer research to gather information d) typically focus on products and services that meet the needs of a large group of customers

c

Small businesses account for ____ of the U.S. gross domestic product each year. a)about 10 percent b)almost a quarter c) more than half d)about 75 percent

b

Small businesses have an advantage over big businesses when customers a) are willing to buy standard products b) want more individual attention c) prefer low cost and efficient delivery d) all of the above

d

Successful entrepreneurs tend to have all of the following characteristics EXCEPT a) energetic b) goal-oriented c) creative d) hesitant

Administration

The Small Business ________ is a U.S. government agency that helps small business owners obtain financing and other support for their companies.

start-up

The amount of money needed to open a business is called ________ financing

D

The first step in developing a business plan is to a) identify alternative plans for production and marketing b) write the introductory section c) develop the "game plan" d) gather and review information

A

The most successful small business owners a) establish good working relationships with professionals such as bankers, lawyers, and accountants. b) have never worked for anyone before. c) do not need to choose employees carefully because they will be the ones giving orders d) understand that a written business plan is a waste of time and money

entrepreneurship

The process of starting, organizing, managing, and assuming the responsibilities of running a business.

False

True/False; All entrepreneurship opportunities emerge from inventions and innovations.

True

True/False; In the United States, nearly as many small businesses close as begin each year.

True

True/False; It is easier for a small business to meet the precise needs of customer than a large business.

True

True/False; Many small business fail simply because they are not located in the right spot.

False

True/False; Once a business plan is written, it should never be revised and should never be updated.

True

True/False; The most important step in starting a business is preparation

True

True/False; The most popular use of business plans is to persuade lenders and investors to finance the venture.

false

True/False; The process of starting, organizing, managing, and assuming the responsibility for a business is called capitalism.

C

Which element of a business plan discusses the entrepreneur's short- and long-term goals for the business? a) financial plans b) description of the competition c) description of the business d) customer analysis

B

Which of the following does NOT describe a typical small business? a) The owner is usually the manager b) It is dominant in its field c) It serves a small market d) It operates in one or very few locations

B

Which of the following would NOT be discussed in the operation plan section of a business plan? a) organization of the company b) sales forecasts c) human resource plans d) analysis of resources needed

Local businesses

______ _______ help to counsel and mentor new business owners

venture

_______ capital is money provided by large investors to finance new products and new businesses that have a good chance to succeed.

long-term

________ financing is money needed for the main resources of a business that will last for many years

improvement

A designed change that increases the usefulness of a product, service, or process is called a(n) ___________

Service corps of retired executives

A group of retired local business people that help new businesses

innovation

A(n) _______ is an invention or creation that is brand new

b

About how many new businesses are created in the United States every year? a) 62.5 thousand b) 625 thousand c)6.25 million d) 625 million

D

According to the Small Business Administration, a small business is an independent business with fewer than _____ employees. a) 10 b) 50 c) 100 d) 500

idea

Every business begins with a(n) _______

one

Most business plans are developed for _____ year.

d

Most of the money needed to start a new business comes from a) the sale of stock b) credit given by businesses that sell products and services to the new business c) bank loans d) the entrepreneur and his/her family and friends

proprietorship

The source of owner-supplied money depends on the business's ownership structure. In a(n) ________ one person will supply the money.

True

True/False; U.S. businesses with just a single owner and no staff account for over $600 billion in annual sales.

false

True/false; Everyone who owns a business is an entrepreneur.

A

Which of the following is probably the LEAST important factor in becoming an entrepreneur? a) living in a major US city b) having special skills and abilities c) having a real desire to be your own boss d) developing a good initial business plan