Intro to Business Chapters 5, 6, and 8
The SBA has provided more than $__ __ billion in loans to small businesses to allow access to capital and increased _______
$90 Billion, growth
About _ _ _ million people worldwide are employed by cooperatives.
100 million
Franchised businesses account for over _ _ million jobs in the US workforce
18 million
On average, _____ of every _______new jobs are created by companies with fewer than 500 employees.
2, 3
Up to _ _% of certain government contracts are designated for small businesses
23
The smallest firms, those with fewer than 20 employees, spend ____% more per employee than larger firms to comply with government regulation.
45
About ____% make it to the five year mark, but by the tenth ___% will have closed.
50, 82
Nearly ___ out of ____ new businesses survive at least two years.
7, 10
Franchising is responsible for close to _ _ _, _ _ _ businesses at a gross value forecasted to be over $__ trillion annually
825,000 and $2 trillion
__ __% of US farms are owned by individual farmers.
90
What does the business plan say about the competition?
A business plan addresses its existing and potential competitors with a strategy for creating superior or unique offerings. Studying the competition can provide valuable information about what does and doesn't work in the marketplace.
What does the business plan say about the customers?
A business plan identifies who the firm's customers will be and how it will serve their needs
What is a home-based business?
A firm operated from the residence of the business owners
Vertical merger
A merger that combines the firms operating at different levels in the productions and marketing process
What is public ownership?
A unit or agency of government which owns and operates an organization.
Acquisition
Agreement in which one firm purchases another
Merger
Agreement in which two or more firms combine to form one company
Small businesses play a significant role in____________
Agriculture
What is a small business?
An independent business with fewer than 500 employees, not dominant in the market.
Partnership
Associations of two or more people who operate a business as co-owners by voluntary legal agreement
The purpose of a ___ ___________ is to create a qualitative benefit to the public beyond financial gains for its shareholders.
B corporation
The founders of large corporations often compare the __________-such as tax incentives-provided by each state.
Benefits
If franchisees fail in any way, that failure reflects poorly on the overall brand as well as the ________ ________
Bottom line
Taxes are another __________________
Burdomesome expense.
Owners of small businesses can increase their chances of success of they become educated in the principles of ____________
Business and entrepreneurship, know the industry in which they intend to operate, develop good customer service and interpersonal skills, understand their customers, hire and train motivated employees, and seek professional advice on issues such as finance, regulation, and other legal matters.
The SBA seldom provides direct _________ _______
Business loans
Franchising can be the quickest way to become a _____ ______
Business owner
Employee ownership
Business ownership in which workers own shares of stock in the company that employs them
Today's ____________ are bound by stricter regulations than in the past
CEO's
Organizations such as the Center For_________ ________ _________ provide info, contacts, and other resources as well.
Center for Women's Business Research
New industries may be created when both the business world and consumers recognize a need for _________
Change
Although sole proprietorships are common in a variety of industries, they are _____________ primarily among small businesses.
Concentrated
Small businesses provide the most jobs in______, ________, ______, _______, and ________.
Construction, agriculture services, wholesale trade, services, and retail trade industries.
Franchising
Contractual business arrangement between a manufacturer or other supplier, and a dealer such as a restaurant operation or retailer.
Small businesses form the ________ of the US economy
Core
New industries are sometimes created when small businesses adapt to provide needed services to a larger __________ ___________
Corporate company
Limited liability corporation
Corporation that secures the corporate advantage of limited liability while avoiding the double taxation characteristic of a traditional corporation
S corporations
Corporations that do not pay corporate taxes on profits, instead, profits are distributed to shareholders who pay individual income taxes
What are the three categories of cooperatives?
Domestic, foreign, and alien
What does the business plan say about the assessment of the risks?
Every business undertaking involves risks. A solid business plan acknowledges these and outlines a strategy for dealing with them.
SBIC's are run by Experienced ________ ________
Experienced venture capitalists
Franchisor
Firm whose products are sold to customers by the franchise
Owners often overestimate the _______ their firms will generate from initial sales to allow operations to continue.
Funds
Small business are adept at developing new and improved ___________ ______ __________
Goods and services
Board of directors
Governing body of a corporation
Small business owners cite their struggle to comply with __________ __________ as one of the biggest challenges they face.
Government regulations
The agreements are fairly strict, and that generally helps to maintain the ________ and ________ of the brand.
Integrity, uniformity
Franchising combines the freedom of business ownership with the support of a ______________
Large company
Corporation
Legal organization with assets and liabilities separate from those of its owners
Many firms establish a ____________, which limits the liability of partners to the value of their interests in the company.
Limited-liability partnership
Business incubator
Local programs designed to provide low-cost shared business facilities to small start-up ventures
__________ ___________ is another advantage of sole proprietorship
Management flexibility
Conglomerate merger
Merger that combines unrelated firms, usually with the goal of diversification, spurring sales growth, or spending a cash surplus in order to avoid a takeover attempt.
Horizontal merger
Merger that joins firms in the same industry for the purpose of diversification, increasing the customer bases cutting costs, or expanding product lines.
Venture Capital
Money invested in a business by another business firm of group of individuals in exchange for an ownership share
In instances, there are ____ ________ cooperatives
One person
What are symptoms of shortcomings in management?
Overconfidence, lack of people skills, inadequate knowledge of finance, inability to track inventory or sales, poor assessment of the competition or customer, poor time management, or lack of time to do everything required.
Stockholders
Owners of a corporation due to their purchase of stock in the corporation
Joint venture
Partnership between companies formed by a specific undertaking
Small businesses with fewer than 49 employees are exempt from both the _______________, and the ______________
Personal protection and affordable act, and the Family and medical leave act.
Sole ______________ are the most common form of business ownership, accounting for more than __ __% of all firms in the US.
Proprietorships, 70
Congress sometimes exempts the smallest companies from certain ___________
Regulations
John W. Nordstrom opened his his first shoe store in _________ in the year_________
Seattle, 1901
Preferred stock
Shares that give owners limited voting rights, and the right to receive dividends or assets before owners of common stock
Common stock
Shares that give owners voting rights but only residual claims to the firm's assets and income distributions.
A common cause of failure in small businesses is_________ of __________
Shortcomings of management.
Small business loans are also available through SBA licensed organizations called______ _______ _______ ______
Small business investment companies (SBIC)
What is the SBA's mission statement?
Small business is critical to our economic recovery and strength, to building America's future, and to helping the US compete in today's global marketplace.
This is the business ownership in which there is no legal distinction between the sole proprietor's status as an individual and his or her status as a business owner.
Sole Proprietorship
In a _______________________ no legal distinction separates the sole proprietor's status as an individual from his or her status as a business owner.
Sole proprietorship
The discovery of _____________ or produce at one franchise restaurant can cause panic to spread throughout an entire chain.
Tainted meat
A good plan addresses the ______________ and ___________________
The company's mission and vision, and an outline of what makes the company unique.
What are incorporators?
The individuals who create the corporation
What is a corporate charter?
The legal document that establishes a corporation
What is an executive summary?
This briefly answers the who, what, when, where, why, and how questions for the business
What are separate financial and marketing sections?
This describes the firm's target market and marketing plan as well as detailed financial forecasts of the need for funds and when the firm is expected to break even-the level of sales at which the revenues equal cost.
What is an introduction?
This includes a general statement of the concept, purpose, and objectives of the proposed business,.
What is a Co-Op?
This is collective ownership, in which owners join forces to operate all or part of the activities in their firm or industry.
What is the resume of principals?
This is the written plan for obtaining financing
What does the business plan say about the financial evaluation of the industry and market conditions?
This knowledge helps develop a credible financial forecast and budget
What is a foreign cooperative?
When a company does business in states other than the one where it has filed incorporation papers.
What is a domestic cooperative?
When it is in the state where it is incorporated
What is a publicly held corporation?
When the company sells stock to the general public, establishing diversified ownership and often leading to a broader scope of operations than those of a closed corporation.
What is a closely held corporation?
When the stockholders control and manage the company's activities
The average loan is $13,000 with a maximum of _____ years
six
The SBA guarantees microloans of up to $_ _, _ _ _
$35,000
Small businesses account for $__ __ billion in exports, shipping more than _ _% of all exported goods.
$65 Billion, 13
About __.__ million not-for-profits operate in the US.
1.5 million
More than ______ business incubator programs operate in the US, with about _______ worldwide
1250, 7000
__ __% of small businesses are home based
52
What is an alien cooperative?
A firm incorporated in one nation that operates in another.
Some for profit organizations choose a newer corporate form called a ________ _______
Benefit corporation
Another problem for small businesses is __________ __________
Inadequate financing.
A US firm can actually _______________ in any state it chooses
Incorporate
Franchisee
Individual or business firm purchasing a franchise
Businesses with fewer than 500 employees generate ______ _______ ______ the nation's GDP
More than half
_____ __________ can be created when small businesses adapt to shifts in consumer interests and preferences.
New industries
Small businesses sometimes don't turn a ______ for months, or even years.
Profit
In a typical year, small firms develop _______ as many product innovations per employee as larger firms.
Twice
