Foundations of business 6

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: Multiple choice question. decreasing stagnating shifting abroad increasing

D

Which of the following is a factor that increases the chances of success of a small business over a large one? Multiple choice question. Low skills needed to run the business High startup cost Low barriers to exit the industry The customer requires a lot of personal attention

D

Select all that apply Select reasons why people become entrepreneurs. Multiple select question. opportunity independence profit regulations

ABC

Select all that apply What are some of the factors that could be associated with small-business success? Multiple select question. Managerial competence Borrowing money without planning Adequate financial planning Forgetting about some costs of doing business

AC

Select all that apply Micropreneurs are willing to accept the risk of starting and managing a business that: Multiple select question. remains small offers them a balanced lifestyle requires large investors known as "angels" to fund rapid growth lets them do the kind of work they want to do

ABD

Started by the Small Business Administration in 1991, the ______ program provides very small loans (up to $50,000) and technical assistance to small-business owners. Multiple choice question. finance microloan help start-up

B

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. Multiple choice question. operational business financial marketing

B

Which part of the business plan summarizes the most attractive points of your project in as few words as possible? Multiple choice question. Operations plan Cover letter Marketing plan Company background

B

Which section of the comprehensive business plan indicates the amount of capital needed to commence or continue operations, and describes how these funds are to be used? Multiple choice question. Financial plan Capital required Executive summary Cover letter

B

Community Development Financial Institutions (CDFIs) are motivated to make sure that their borrowers are successful because if borrowers do not pay back their loans the _______ takes the hit.

CDFI

The part of a business plan that includes an organization chart, job descriptions of listed positions, and detailed resumes of the current and proposed executives is called the __________ ___________section.

management team

The most common source of funding for small businesses after friends and family is _________ savings.

personal

SBA microloans are often given to people such as __________ mothers, and tenants in __________ housing.

single, public

_____ want to maintain a balanced life style while doing the kind of work they want to do. Multiple choice question. Micropreneurs Intrapreneurs Entrepreneurs Managers

a

Because investors want to be protected against any possible mishaps, it is also a good idea to include a description of ___________ coverage in the Company Background portion of the business plan.

insurance

Select all that apply When starting a small business, government agencies such as the Small Business Administration (SBA), the Farmers Home Administration, the Economic Development Authority, and the Minority Business Development Agency are possible sources of: Multiple select question. capital customers interest free loans information

AD

Business _______ are centers that offer businesses in the critical stage of early development low-cost offices and access to basic services such as accounting, legal advice, and secretarial help.

Incubators

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

A(n) _______ can benefit both the trainee and the business owner by hiring the trainee to learn small-business management while assisting the owner in getting daily work done.

apprentice

A(n) ____________ can benefit both the trainee and the business owner by hiring the trainee to learn small-business management while assisting the owner in getting daily work done.

apprentice

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

apprentice

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

apprentice

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

billion, 12

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.

market research study

_______ ________are individuals or companies that invest in new businesses in exchange for partial ownership of those businesses.

venture capitalists

Select all that apply Learning from others is a useful way to avoid pitfalls when starting a small business. Some things you may be told would include: Multiple select question. to hire a good lawyer and accountant starting with enough money that finding and retaining good workers is hard to plan to start big and the money will come

ABC

A business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size in terms of employees or annual receipts is a(n): Multiple choice question. independent business corporate business small business big business

C

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

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

business plan

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

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

executive, summary

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

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

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

global

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

Factors like the customer needing a lot of personal attention, the product not being easily made, and sales not being large enough to appeal to a larger firm all create opportunities for ___________ business success.

small

Managerial incompetence and inadequate financial planning are two common reasons for______________-_____________ failure.

small business

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

small business administration

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 the skills needed to develop, make, and market a new product.

team, managerial

Venture capitalists may ask for a large stake in your small business - as much as _______________ percent which could cause you to lose control of the business.

60

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: Multiple choice question. understands the steps needed to start a small business does not understand what it takes to start a small business is riding the coat tails of his uncle took the wrong initiatives

A

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). Multiple choice question. strategy plan business plan cover letter executive summary

B

Which of these are centers that offer new businesses in the critical stage of early development low-cost offices with basic services such as accounting, legal advice, and secretarial help? Multiple choice question. Enterprises Affiliates Business incubators Small Business Administration offices

C

Select all that apply When writing a business plan, it is important to: Multiple select question. develop a vision that sets a cultural tone develop a Gantt chart analyze the competition calculate how much money you need to start

CD

A market consists of consumers with unsatisfied wants and needs who have both resources and the willingness to: Multiple choice question. supply sell demand buy

D

Select all that apply A small business is defined as: Multiple select question. one that is not dominant in its field one that is independently owned and operated one whose stock is traded on the open stock market one that meets certain standards of size in terms of employees or receipts

aBD

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

Totals that are shown in the Capital Required portion of a business plan should be the same as the ones shown in the _________ ________ statement.

cash flow

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

If managers do not have expertise in all the necessary disciplines of the business, the Management Team portion of the business plan should mention outside __________.

consultants

True or false: Personal savings, venture capitalists, and government agencies such as the Small Business Administration (SBA) are possible sources of capital or information when starting a small business.

true

Phil invests in new businesses in exchange for partial ownership in those businesses. Phil is a(n) ____________ ______ .

venture, capitalist

Two advantages small firms have over large firms include more personal customer service and the ability to respond quickly to: Multiple choice question. opportunities large increases in demand employee requests for higher wages employee benefits needs for better benefits

A

Select all that apply Examples of businesses that require high rates of advanced training are Multiple select question. veterinary services dental practices building services

AB

A(n) ______ team is a group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make, and market a new product. Multiple choice question. franchise entrepreneurial creative business

B

Included in the comprehensive business plan, the ______ plan provides five-year projections for income, expenses, and funding sources. Multiple choice question. human resources financial operational marketing

B

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? Multiple select question. Organizing employees Planning Knowing your customers Receiving a bank loan

BC

Select all that apply A business plan is a detailed written statement that describes: Multiple select question. the advantages of using a chosen bank the resources and qualifications of its owner(s) the target market a demand forecast of employees

BC

Which of the following is true regarding businesses with low failure rates, such as veterinary services, dental practices, and medical practices? Multiple select question. They grow very large in a short time. They do not tend to produce much growth. They often require advanced training to start. They are easy to start.

BC

Select all that apply All organizations require the following: Multiple select question. less planning information management more employees capital

BD

Select all that apply 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? Multiple select question. Bank analysis Cover letter List of all competitors company background Executive summary

BDE

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: Multiple choice question. the bank officer did not like her dress she did not have a good idea for a business she did not develop a thorough business plan she already had all of the capital needed to start

C

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? Multiple choice question. Operational plan Capital required Marketing plan Financial plan

C

All consumers with unsatisfied wants and needs who have both resources and the willingness to buy are: Multiple choice question. a country's population customers located in a specific region a market

D

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: Multiple choice question. having your own business allows one to take long vacations all apprenticeships work well business owners can save money by hiring an apprentice apprenticeships can benefit both the business owner and the apprentice

D

The ______ section of a business plan describes company operations to date (if any), potential legal considerations, and areas of risk and opportunity. This portion also summarizes the firm's financial condition, and includes past and current balance sheets, income and cash flow statements. Multiple choice question. financial plan executive summary marketing plan company background

D

_________ zones are specific geographic areas to which governments attract private business investment by offering lower taxes and other government support.

empowerment

Within the comprehensive business plan, the ______ plan outlines sales, advertising, promotion, and public relations programs. This section also compares prices to competitors and forecasts sales in dollars and units. Multiple choice question. operations marketing executive financial

B

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

customer

The Financial Plan part of a business plan should show how you plan to fund the business at various stages of the company's _______ .

growth

__________ are creative people who work as entrepreneurs within corporations.

intrapreneurs

A necessary and invaluable aid to entrepreneurs is a competent, experienced ________ who knows and understands small business. This person can help with leases, contracts, partnership agreements, and protection against liabilities.

lawyer

______ are specific geographic areas to which governments attract private business investment by offering lower taxes and other government support. Multiple choice question. Enterprise zones Venture capitalists Marketing zones Government zones

A

Select all that apply Which of the following is true regarding businesses with low failure rates, such as veterinary services, dental practices, and medical practices? Multiple select question. They often require advanced training to start. They do not tend to produce much growth. They are easy to start. They grow very large in a short time.

AB

Select all that apply In addition to good ideas, entrepreneurs must Multiple select question. want to see their dream become reality be action oriented have a burning desire to realize and actualize their dream continually come up with new ideas

ABC

Select all that apply Some common causes of small business failure include: Multiple select question. underpricing or overpricing goods or services starting with too little capital no experience in that business or industry overestimating time needed to build the business

ABC

Select all that apply Which of the following are good ways to learn how to run your own business? Multiple select question. Run a small business during your off hours Work for a successful entrepreneur Talk to other business owners Start the business immediately to speed up the learning process

ABC

Select all that apply Select the characteristics of an intrapreneur. Multiple select question. a creative person who works within a corporation he or she generates profits by leveraging a firm's human financial and physical resources. a person who assumes the risk of starting a business. someone who uses company's resources to launch new products

ABD

Select all that apply Which of the following characteristics are needed to become a successful entrepreneur? Multiple select question. Tolerant of uncertainty Initiative Bachelor's degree in business Action-oriented

ABD

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

Entrepreneurs who are not interested in starting a mammoth corporation, but rather are interested in a balance between lifestyle and work are called __________.

Micropreneurs

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

difficult

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.

entrepreneur

Select all that apply A business plan is a detailed written statement that describes: Multiple select question. the target market the advantages of using a chosen bank the resources and qualifications of its owner(s) a demand forecast of employees

AC

Select all that apply Community Development Financial Institutions (CDFI) have been successful because they: Multiple select question. offer counseling on marketing strategies offer more funding than is actually needed maintained financial discipline other lenders lack provide counseling on improving cash flow

ACD

Venture capitalists try to safeguard their investment by taking some control over the business. What could happen if a venture capitalist takes too large a stake in your company? Multiple choice question. You could destroy employee morale. You could lose control of the business. You could gain control of the business. You could run out of money.

B

Which of the following is a factor that increases the chances of success of a small business over a large one? Multiple choice question. Low barriers to exit the industry The customer requires a lot of personal attention Low skills needed to run the business High startup cost

B

If you want to start a business, you cannot be afraid to fail. Many well-known _____________ failed several times before achieving success. This is why these people are considered to be tolerant of uncertainty.

entrepreneur

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

entrepreneurship