MAN3025 Midterm Review #4

russia

Experts agree that small businesses will be quite important in the emerging economies of countries such as _____.

niche

A(n) _____ is defined as a segment of a market that is not currently being exploited.

a sports card and comic book retail store

Financial constraints will limit your new business to no more than one employee in addition to yourself. Which option would be most amenable to this, at least in the short run?

financial statements

How much money will the owners invest in the business start-up?

there has been an increase in the number of African American-owned businesses

Which of the following statements is true of minorities in small businesses?

fewer than 20 people

Research shows that most U.S. businesses employ:

only one out of five workers in the United States work for companies with more than 500 employees approximately 86% of businesses in the United States employ fewer than 20 people

Running a small business is a lot of work. However, the Lacostes were pleasantly surprised to learn how many small businesses exist, especially as they think about hiring their first full-time employees. Which of the following are reasons that small businesses are so important when it comes to job creation? Check all that apply.

take a more balanced approach in their choices than venture capital companies

Small-business investment companies:

a big business may need smaller businesses to provide services it cannot (or chooses not to) perform itself small businesses can contribute to the success of larger businesses

The Lacostes like the independence of having their own business. However, they realize that Woofshirt relies on its relationships with other, often larger, businesses. For example, Woofshirt buys fabric from a big textile manufacturer. You explain that both small and large companies frequently conduct business with each other. Which of the following are accurate reasons for you to provide? Check all that apply.

an economy of scale

The relationship between cost and production when manufacturing costs fall as production increases is termed _____.

service or product line

What are the unique features of this business's merchandise?

marketing and sales management

What kind of advertising will this business do to sell its products?

the harness-hiding design of Woofshirt sweatshirts is innovative a product can be innovative even if it is not a high-tech invention

When you first saw Woofshirt sweatshirts, you congratulated the Lacostes on how innovative their products are. They were puzzled, claiming that there is no way the Woofshirt can be called innovative. Which of the following are accurate statements for you to make to support your assertion that Woofshirts are innovative? Check all that apply.

a gourmet coffee and coffee bean store a pizza home-delivery restaurant

Which business or businesses would likely have the most competition from national firms? Check all that apply.

cruddas created an innovative product that lowered the cost of a service in the financial industry

Which of the following indicates that Peter Cruddas created a product that allowed him to gain the first-mover advantage?

specialized dog training

Which of the following is a diverse field in which entrepreneurs have achieved success?

advisory boards

Which of the following is a source of management advice?

an effective control system

Which of the following is required to help alert entrepreneurs to potential trouble?

they lend to firms that are unable to get private financing

Which of the following is true of Small Business Administration (SBA) financial programs?

it provides fundamentally new ways of doing businesses

Which of the following is true of electronic commerce?

new jobs are created by small firms specializing in international business

Which of the following is true of small businesses?

small businesses suffer a higher mortality rate than larger concerns

Which of the following is true of trends in small businesses?

they have managerial incompetence

Which of the following is true of unsuccessful entrepreneurs?

a new business must answer yes to all three questions to sustain a competitive advantage

Which of the following statements is an accurate interpretation of the diagram for sustaining a competitive advantage?

luck plays a role in the success of some businesses

Which of the following statements is true in the context of businesses?

they make products that are sold to consumers by small businesses

Which of the following statements is true of big businesses?

a store that sells shirts for fans of local sports teams a store that sells clothes for people who travel a lot a store that sells shirts for fans of a certain genre of music a store that sells clothes for pregnant women

Which of the following would qualify as a niche clothing store? Check all that apply.

venture capital companies

_____ are groups of small investors seeking to make profits on companies with rapid growth potential.