Ch 6

True or false: Addressing the cover letter on your business plan "To whom it may concern" is considered preferable.

False

_______ want to maintain a balance lifestyle while doing the kind of work they want to do

Micropreneurs

Gaining financing, knowing how to get started in exporting, and navigating bureaucratic paperwork are major hurdles to consider when getting started in _________ business.

global

Mark recently started a small consulting firm. He is drafting a detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competition, and the resources and qualifications of the owner(s). Mark is writing a(n) ____________ ____________

Business Plan

A good business plan is between 25 and 50 pages long and takes many months to write. A comprehensive business plan will include which of the following?

Executive summary Cover letter company background

More personal ___________ service and the ability to respond quickly is an advantage for small businesses

Customer

An inexpensive marketing research study may help you determine which of the following?

Whom to select as your target market Where to locate What is an effective strategy for reaching your target market

There are a few hurdles that prevent many small businesses from engaging in the global market. Which of the following are examples of such problems?

Would-be exporters do not know how to get started. Financing is often difficult to find.

Understanding where to locate your business, who your target market is, and how to reach them, can be accomplished through

an inexpensive market research study

A(n) _________ is hired to assist the owner of a small business while gaining experience.

apprentice

Becoming a(n) ________ is one of the best ways to learn about how to run a business.

apprentice

David opened his own bicycle shop 30 years ago, and although he enjoyed his work, he needed more free time. When Josie requested to work as an apprentice, David was very willing. Before long Josie was able to run the store without any help. This is an example of how:

apprenticeships can benefit both the business owner and the apprentice

The executive summary is the part of the ______ plan that consists of a two- or three-page management summary of the proposed venture, including a short description of the business, and discusses major goals and objectives.

business

A(n) ______ is a detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competition, and the resources and qualifications of the owner(s).

business plan

A market consists of consumers with unsatisfied wants and needs who have both resources and the willingness to:

buy

When writing a business plan, it is important to:

calculate how much money you need to start analyze the competition

All organizations require the following:

capital information management

A banker or investor in a small business is very interested in making sure you are a person of good ___________ as a small business owner.

character

More personal ________ service and the ability to respond quickly is an advantage for small businesses.

customer

Entrepreneurs must recognize that they need competent and motivated employees. Since they can't compete with larger firms' pay and benefits, they need to

delegate more often provide more challenging opportunities to learn be respectful of employees' opinions

The expansion and development of the Internet has sprouted a world of small web-based businesses. This, among other reasons, may explain why online sales are rapidly:

increasing

According to a recent study, offering low-cost offices with basic services to new businesses in the early stages of development results in an 87% success rate of __________ graduates.

incubator

The best way to define a(n) _________ is all consumers with unsatisfied wants and needs who have both resources and the willingness to buy.

market

Which part of the business plan summarizes the most attractive points of your project in as few words as possible?

Cover Letter

As a small business grows, it is ____________ to oversee every detail; entrepreneurs must train and motivate employees.

impossible

A ____ is someone accepting the risk of starting and running a business

Entrepreneur

______ refers to accepting the risk of starting and running a business.

Entrepreneurship

A good business plan takes a lot of time to write, but you have only a few minutes to convince readers not to throw it away. This is why your _________ summary is very important.

Executive

A comprehensive business plan will include cover letter,_______ ________ , company background, management team, financial plan, capital required, marketing plan, location analysis, manufacturing plan, and an appendix.

Executive Summary

Bankers receive many business plans every day, so the ______ _______ of your business plan must be written to catch their interest quickly.

Executive Summary

__________ are creative people who work as entrepreneurs within corporations.

Intrapreneurs

The most important things investors want to know are what makes the product more desirable than what's already available and whether or not the product can be patented. In which section of the business plan should investors look to find this information?

Marketing plan

Entrepreneurs start a business with the desire to grow the business and generate wealth while _____________ start a business that will stay small, allowing them to have a balanced lifestyle and the ability to do the kind of work they want to do.

Micropreneurs

______ want to maintain a balanced life style while doing the kind of work they want to do.

Micropreneurs

Chris spent his own money on marketing research, and consulted his sister Kara, who is an accountant. They spent the next few months writing a business plan. Which of the following are some business functions Chris has addressed?

Planning Knowing your customers

_________ businesses are businesses that are independently owned and operated, are not dominant in their field of operation, and meet certain standards of size in terms of employees or annual receipts.

Small

The U.S. government agency that advises and assists small businesses by providing management training and financial advice and loans is called the:

Small Business Administration

Wayne is starting a small business, but needs help with management training, financial advice, and loans. He should contact the ________ ________ __________

Small Business Administration

Managerial incompetence and inadequate financial planning are two common reasons for ______ -______ failure.

Small, Business

While a business plan is a detailed document with many sections, its overall purpose is to describe the nature of the business, the _____________ market, and the _________ over the competition.

Target, Advantages

an entrepreneurial __________ is a group of experienced people from different areas of business who join together to form a __________ team with skills needed to develop, make, and market a new product.

Team, managerial

True or false: the principles of management are similar for a small neighborhood business and a giant global firm

True

_________ __________ are individuals or companies that invest in new businesses in exchange for partial ownership of those businesses. Listen to the complete question

Venture Capitalists

______ are individuals or companies that invest in new businesses in exchange for partial ownership in those businesses.

Venture capitalists

Being self-directed, self-nurturing, action-oriented, and tolerant of uncertainty are all considered characteristics of a(n):

entrepreneur

Opportunity, profit, independence, and challenge are some reasons people are willing to take the risks of being a ___________

entrepreneur

Individuals who possess such attributes as being self-directed, action-oriented, and tolerant of uncertainty can make excellent ___________ like Bill Gates and Steve Jobs. Listen to the complete question

entrepreneurs

Many ________ use their time, money, and energy to turn their passions into sustainable businesses. They are comfortable being their own bosses and are not afraid of failure.

entrepreneurs

A small business is defined as:

one that meets certain standards of size in terms of employees or receipts one that is independently owned and operated one that is not dominant in its field

Two advantages small firms have over large firms include more personal customer service and the ability to respond quickly to:

opportunities

Entrepreneurs often come up with an idea for a new business and need financing. At this stage, it is important to develop a business __________, which forces potential small-business owners to be quite specific about the products or services they intend to offer (answer is one word).

plan

Kayla wanted to open her own dress design business. She spent a few hours putting together a marketing plan, then selected an award-winning dress she designed and wore it to the meeting with the bank. The most likely reason she did not receive a loan was:

she did not develop a thorough business plan

Select the characteristics of an intrapreneur.

someone who uses company's resources to launch new products a creative person who works within a corporation he or she generates profits by leveraging a firm's human financial and physical resources.

An entrepreneurial __________ is a group of experienced people from different areas of business who join together to form a _____________ team with the skills needed to develop, make, and market a new product.

team, managerial

Learning from others is a useful way to avoid pitfalls when starting a small business. Some things you may be told would include:

to hire a good lawyer and accountant that finding and retaining good workers is hard starting with enough money

True or false: Most entrepreneurs do not get their ideas from a flash of inspiration; they come more from their passions or looking at problems.

true

Daniel wanted to start his own small business. After spending his own money on marketing research, Daniel asked his friend Chase to be his accountant. They spent a few months writing a business plan, which then they presented to a bank. Daniel:

understands the steps needed to start a small business

After working for a large auto manufacturing company for over 20 years, Silvia decided to start her own auto accessory store. While facing new challenges every day, Silvia enjoys being free to manage her company as she desires. This example illustrates: Multiple choice question.

why people take the risks of entrepreneurship

In 2019, online retail sales reached over $365 _________, or approximately __________ percent of all retail sales.

Billion, 12

It is extremely important to develop a(n) ________ _______ before going to a bank for a loan, because it shows that you are aware of who the target market is, who the competition is, how much money you need, and exactly how you intend to turn a profit.

Business Plan

Jason has prepared a comprehensive ___________ ____________which includes a cover letter, executive summary, company background, management team, financial plan, capital required, marketing plan, location analysis, manufacturing plan, and an appendix.

Business Plan

One of the most difficult tasks is raising money for a start-up. To raise money, entrepreneurs talk with bankers and other potential investors, and try to sell their ideas. In order to have a chance, most of the time, entrepreneurs have to present a(n) ________ _________

Business Plan

Since the Executive Summary is the summary of the proposed business venture, it should include parts of the entire __________ __________

Business Plan

Which of these are centers that offer new business in the critical stage of early development low-cost offices with basic services such as accounting, legal advice, and secretarial help?

Business incubators

Select the characteristics of an entrepreneurial team that will be developing and marketing a new product.

Each from different areas of business Members have complementary skills and are creative A group of experienced people

An inexpensive _________ _________ _________ can help you determine where to locate your business, whom to select as your target market, and what is an effective strategy for reaching it.

Marketing Research Study

To keep track of daily sales, expenses, profits, inventory control, customer records, and payroll a small business needs a good

accounting system

Among the hurdles small businesses must overcome in starting to operate globally are:

bureaucratic paperwork understanding cultural differences difficulty finding financing

Local community college classes are a good place to start to learn about business and _______________

entrepreneurship

Becoming an apprentice, talking to other business owners, and working for a successful entrepreneur are all examples of effective ways to obtain ____________ for running your own business.

experience

Some causes of small-business ______ include underpricing or overpricing goods or services, starting with too little capital, going into business without first learning something about the industry or market, and underestimating how much time it will take to build a market.

failure

Managing a small business became relatively easy with the advent of inexpensive personal computers. Inexpensive computer systems and off-the-shelf or even free, open-source software make it easy for the small business manager to:

follow the daily sales and expenses manage customer records

As a small business grows, it is __________ to oversee every detail; entrepreneurs must train and motivate employees.

impossible