Small Business Management Exam Review 1

Economies of Scale

leads to a condition where a single firm making 100 percent of the product is the most efficient

Skill Identification

Hobbies, education, work experience, family history

Who were the Robber Barons and what did they do?

American industrialists and financiers who made fortunes by monopolizing huge industries through the formation of trusts, unethical business practices, exploiting workers. Ex. Rockefeller oil

According to the book, the development and implementation of a new business is

Part art, Part Science

What term is used to describe individuals or other organizations that impact the success of a business

Stakeholders

The Small Business Administration was organized as a part of

The Small Business Act of July 30, 1953

gap analysis

a marketing research method that measures the difference between a customer's expectation of a service quality and what actually occurred

what are the critical elements that an entrepreneur must solve for success

an effective sales generation model, sustainable operating profit margins, being properly financed

Years ago, economists mistakenly predicted that small businesses would

be replaced by a smaller number of big businesses

Opportunity Analysis

examines opportunities in the marketplace side-by-side with the individual's ability to address those gaps

Gap Analysis Categories

finances, time, nonfinancial resources, risk, competitors

The success of entrepreneurial businesses occurs partially because they are

more focused than their large corporate counterparts

Economies of Scale

term used to describe Walmart's ability to purchase more advertising space at a lower cost per ad

Small companies have flourished for all the reasons except

they often expand easily in mature industries

In the context of the initial developments of the industrial base in the United States, which of the following statements is true about robber barons?

they quickly came to dominate new sectors of the economy