BMF Chapter 6 test review

venture capital

money invested in a business by investors who form partnerships or groups to pool investments

which of the following is not a potential advantage of purchasing an existing business?

expensive purchase price

market structure

gathering and analyzing information about a business

which pro forma financial statement projects revenue and expenses to show whether or not a business is profitable?

income statement

which of the following is not a reason why many new businesses fail?

lack of profit motive

which of the following is a quality of an effective leadership?

self-confidence

which of the following is a source of professional advice for new entrepreneurs?

small business administration (SBA)

mentor

someone with experience who can provide advice, suggestion and ideas

an entrepreneur can choose to_____.

start a new business, purchase an existing business, buy a franchise

leadership

the ability to reach others and reach a goal

start-up capital

the money necessary to start and open a business

capital structure

the way a business is financed

market analysis

the_____provides an overview of the industry and market that the business will serve.

two sources of equity financing are_____.

venture capital and angel investors

angel investors

private investors who fund start-up businesses are_____.

entrepreneurs willingly risk resources to start and run a business in pursuit of______

profit

assets

property or item of value which a business owns are_____.

cash flow

the movement of money into and out of a business

executive summery

a description of a business and why it will be successful is a(n)_____.

trait

a distinguishing characteristic or quality that makes each person unique

franchise

a licence to sell a company's goods or services within a certain territory or location is a(n)_____.

entrepreneur

a person who starts a business or purchases an existing business is a(n)_____.

mission statement

a sentence describing the purpose of a business is a(n)_____.

business plan

a written statement of goals and objectives for a businesses and a strategy to achieve them

passion

_____is something which entrepreneurs believe in or are enthusiastic about

transferable

_____skills help an individual performed in the workplace or gain success in a career.

market

all the people and organizations that might purchase a product

small business administration (SBA)

an independent agency of the federal government dedicated to helping entrepreneurs starts, build and grow their business is the____.

which of the following is a basic skill every entrepreneur should master?

basic math functions

a business plan includes_____.

financial projection