SEVI chapter 5

Giovanni would like to start his own business, but he has very little savings. Additionally, his family isn't willing to invest any money into his business because they fear it may fail. Giovanni's bank is also unwilling to provide a loan that is large enough to start the business. This is an example of which disadvantage of small business? Limited ability to raise capital Inability to adapt to change Risk of failure Limited potential

Limited ability to raise capital

Bhavika has created a business plan as part of an assignment for her entrepreneurship class. Her plan is for a screen-printing business. In the _____ section of the business plan, Bhavika discusses current competition, pricing, and promotion. Introduction Marketing Plan Company and Industry Benefits to the Community

Marketing Plan

Portia knows the customers of her hat shop by name and knows each of their preferences. What small business advantage does this demonstrate? Independence Ability to adapt to change Personal relationships with customers Simplified record keeping

Personal relationships with customers

______ entrepreneurs own 42 percent of all businesses. Women Teen Immigrant Black

Women

Suki is discussing franchising with her uncle. He owns and operates a BP franchise. Suki knows from her business courses that her uncle operates a type of franchise in which _____. a producer licenses distributors to see a given product to retailers a dual-branded franchise is one in which franchisors offer their products together a franchisor supplies brand names, techniques, or other services rather than a complete product a manufacturer authorizes a number of retail stores to sell a certain brand-name item

a manufacturer authorizes a number of retail stores to sell a certain brand-name item

Celeste owns a small business and needs some technical help. She contacts a university-based group that provides individual counseling and practical training to owners of small businesses. Celeste contacted ____. a small-business development center (SBDC) a small-business institute (SBI) the Service Corps of Retired Executives (SCORE) the Small Business Administration (SBA) local office

a small-business development center (SBDC)

Hwan owns his own accounting firm and has just hired his first two employees. He seeks information from _____ who are senior and graduate students in business administration who provide management counseling to small businesses. a small-business institute (SBIs) a small-business development center (SBDC) the Small Business Administration (SBA) local office the Service Corps of Retired Executives (SCORE)

a small-business institute (SBIs)

Haamid has received an investment for his small business from a private individual who invested money in exchange for ownership in Haamid's company. Haamid likely received the investment from a(n) _______. small business investment company (SBIC) angel investor venture capital firm bank loan

angel investor

a carefully constructed guide for the person starting a business

business plan

Elif is a musician who would like to raise money to start her business. She decides to use ____ as a source of financing. To do so, she posts a description about her business and products on a website and invites people to contribute. venture capital franchising crowdfunding a small business investment company (SBIC)

crowdfunding

a person or organization purchasing a franchise

franchisee

anindividual or organization granting a franchise

franchisor

The UPS store offers franchises to investors who have a net worth of at least $150,000 and can pay an initial franchise fee of $29,950. The UPS store is considered the _____ and benefits from the arrangement ______. franchisee; by ensuring that outlets are maintained and operated according to its own standards franchisor; by having more capital available to expand operations and use for advertising franchisor; by making use of the business experience of others franchisee; by starting a business with limited capital

franchisor; by having more capital available to expand operations and use for advertising

a license to operate an individually owned business as though it were part of a chain of outlets or stores

francise

Sriranjani has a motorcycle and ATV store. Her customers often talk about trikes. Sriranjani orders some Harley-Davidson Trikes for her inventory. Her actions are possible because small businesses _____. have simplified record keeping can keep all profits have the ability to quickly adapt to change have personal relationships with customers

have the ability to quickly adapt to change

Frustrated that she was working many hours for someone else, Morgan decided to start her own business. She could work when she wanted to and take a day off as needed instead of having to work on a set schedule. Morgan was likely influenced by ____ when starting her own business. age family background independence money

independence

an independent business with fewer than 500 employees, depending on its industry

small business

a government agency that assists, counsels, and protects the interests of small businesses in the United States

small business administration (SBA)

groups of senior and graduate students in business administration who provide management counseling to small businesses

small business institutes (SBIs)

privately owned firms that provide venture capital to small enterprises that meet their investment stan ards

small-business investment companies (SBICs)

Trevon has worked in a manufacturing industry for twenty years. He wants to open his own manufacturing firm and sell his products globally. Trevon thinks his company has a good chance to be successful internationally because he knows _____. that only one percent of small business in the U.S. currently engage in deliberate exporting that real-time communications are shrinking business opportunities and he needs to act now that national economies are becoming more self-reliant that technology only allows for large corporations to reach global markets

that only one percent of small business in the U.S. currently engage in deliberate exporting

When Betsy started her business, she knew that if she needed any assistance she could contact _____ and receive help from retired and active businesspeople who volunteer their services to small-business owners. the Small Business Administration (SBA) local office a small-business institute (SBI) the Service Corps of Retired Executives (SCORE) a small-business development center (SBDC)

the Service Corps of Retired Executives (SCORE)

Your friend would like to own their own business one day. You have learned a lot about franchises in your business course, so you tell your friend that as a franchisee, they would benefit from _____. the fee paid to open the franchise the use of the brand image and design of the business the well-controlled distribution of products more capital to expand the business

the use of the brand image and design of the business

Small businesses are important to the U.S. economy for all of the following reasons except _____. that they represent 99.9 percent of all employer firms they employ about half of all private-sector employees they have generated 50 percent of net new jobs over the past 20 years pay 40 percent of total U.S. private payroll

they have generated 50 percent of net new jobs over the past 20 years

money that is invested in small (and sometimes struggling) firms that have the potential to become successful

venture capital

Which of the following businesses would not be considered a small business? A car repair shop with over $250,000 in revenue and eight employees A wholesale trade company with $1 million in profit and 300 employees A real estate development company with $100 million in revenue and 54 employees A manufacturing firm with $17 million in revenue and 95 employees

A wholesale trade company with $1 million in profit and 300 employees

The organization chart for a business would appear in which section of the business plan? Executive Summary Labor Force Management Team Appendix

Appendix

Malik must submit a business plan with his loan application. He has just finished the section of the plan that discusses the weaknesses of the business and how he plans to deal with those. Malik has just completed the _____ section. Executive Summary Financial Plan Company and Industry Critical Risks and Assumptions

Critical Risks and Assumptions

the actual granting of a franchise

Franchising

a group of businesspeople who volunteer their services to small businesses through the SBA

Service Corps of Retired Executives (SCORE)

university-based groups that provide individual counseling and practical training to owners of small businesses

Small-business development centers (SBDCs)

Kushi has collected money from savings, family investments, and bank loans in order to start her own florist shop. She is optimistic that her business will be a success because she loves arranging flowers and receives many likes and comments when she posts her designs online. Kushi asks you, a business major, what advice you have about starting a business. Which of the following is correct information you can share with Kushi? Small businesses inherently possess the ability to expand. Starting a small business requires much more than optimism and a good idea. Entrepreneurs should always adopt a "fast growth" mindset. Most small businesses generate a profit in their first year of operation.

Starting a small business requires much more than optimism and a good idea.