Entrepreneur
The challenges of a home-based business are _____ and ______.
Professional image and local laws
Some cities may have laws that may limit the operations of home-based businesses. These _____, are local laws set to regulate land use.
Zoning ordinances
In order to maintain a strong competitive advantage it is essential that a business owner
add a solid reputation for honesty and dependability
A financial report that shows a firm's assets, liabilities, and owner's equity at a specific point in time is a _________.
balance sheet
The traditional physical facility from which businesses have historically been operated is called a
brick and mortar facility
The oldest and largest source of early stage equity capital for entrepreneurs, ______, are private individuals who invest in early-stage companies.
business angels
In the event of potential conflicts, an entrepreneur should consider a ____, someone that can assist in buying and selling businesses
business broker
A ______ is a document that outlines the basic concept underlying a business specifically, what problem will be solved and describes how you will execute your plan to solve the problem
business plan
The business model, perfected by Amazon, Apple, and Best Buy focuses on sale of products and services to final consumers
business to consumer model (B2C)
It is important to have a clear distinction between a market and industry... A market consist of _____. Where an industry is composed of
buyers; sellers
A firm's operating activities, investing activities, and financing activities make up the ____________.
cash flow activities
The financial report that shows a firm's sources of cash as well as its uses of cash is the _________.
cash flow statement
Businesses owned and managed by couple teams are known as
co-preneurs
Small companies that otherwise would have little to no access to startup funding can choose ______ as their lenders, serving low income communities.
community-based financial instititions
Opposite of a short plan, a _______ provides an in-depth analysis of the critical factors that will determine a firm's success or failures, along with all of the underlying assumptions
comprehensive plan
A "short plan" , an abbreviated form of a business plan consist of all the following except
exit strategy
Saving time and money wasted on daily commutes, spending more time with family and friends, and getting a business up and running quickly and cheaply are several advantages of having a
home-based business
The financial report that shows the amount of profits or losses from a firm's operations over a given period of time is known as the ____________.
income statement
This model, usually used to complement an existing facility, offers information about a business, its products, and other related matters
information-based model
All of the following are key factors for success, except
management
The section of the business plan that indicates how much money is needed, and when and how the money will be used
offering
Cost that are related to marketing and selling a firm's product or service, general and administrative expenses, and depreciation.
operating expenses
The two general approaches that can help in identifying business ideas are
outside-in and inside-out
When a venture is operated by the founding entrepreneur, it is known as
owner managed business
This technique can be used to project figures for individual assets, such as accounts receivables and inventory.
percentage-of-sales techniques
In addition to a business plan, an entrepreneur may be asked to give an oral presentation, this is known as a/an
pitch
The greatest advantage of buying a franchise is
probability of success
Family businesses sometimes face the stereotype of not being
professionally managed
For a small firm the two most important services of a bank are ______ and ______.
provision of checking account facilities and the extension of short-term loans
For a typical small firm, ________ is/are the primary source of equity capital for financing growth.
retained earnings
"Accidental discoveries" are also known as
serendipity
A revenue stream that receives revenue from a single product or service is known as a
single stream
A _____ briefly covers all aspects of the business plan, giving each topic relatively equal treatment
synopsis
In the business paradigm a person who thinks in short-term, is paternalistic, uses only traditional marketing strategies, and relies on personal selling is known as a
technician
Which of the following are good qualities in an entrepreneur?
Be motivated, Be committed, Be creative
One of the first steps in building a healthy family business relationship is by having ______, a gathering of family members, usually at a remote location, to discuss family business matters.
Family retreat
When _______, entrepreneurs make assumptions and , based on the assumptions, determine financing requirements.
Forecasting
_____ and _____ on part of the entrepreneur are required when applying for a government loan program.
Time and patience
The greater a firm's sales, the greater the asset requirements will be and, in turn, the greater the need for financing.
True
The positive or negative impact that of financing with debt rather than equity is known as _______.
leverage
The types of loans provided by bankers are...
lines of credit, term loans, and mortgages
The practice of employing relatives, is known as
nepotism
The passing of the ownership of a business to the next generation is known as
transfer of ownership
In average, family businesses survive longer than non-family firms
true
Nowhere in the business plan is it important to provide hard evidence to support your claims than when presenting your analysis of the market
true
In forecasting _________, an owner of a business must consider the time period used for projections.
cash flows
All of the following are part of the "Five C's of credit" except...
consideration
A ______ is the organizational and strategic planning arm of a family business
family council
A _____ is defined by the SBA as a business model that involves a business owner who licenses trademarks and methods to an independent entrepreneur
franchise
The cost of borrowed money is known as __________.
interest expense
All loan agreements include the interest rate, the loan maturity date, the repayment schedule, and the _______.
loan covenants
Restrictions imposed by the bank on the borrower are ____________.
loan covenants
Which of the following is a positive of being in a family business
long-range thinking by leaders of the firm
Earnings that may be distributed to the owners or reinvested in the company are the ____________.
net profits
A measure of a companies liquidity _______, is the companies current assets less current liabilities.
networking capital
Which of the following represent the types of ideas that develop into startups
new market, new technology, & new benefit
When small businesses try to shield themselves from competition by targeting a specific group of customers who have been identifiable buy have a very narrow range of product and service interest, this is known as
niche market
Rachel purchased a new industrial oven for $7,000 with a life expectancy of 7 years. What is Rachel's depreciation expense for one year?
$1,000
Rachel's Cupcake Shop had sales totaling $300,000 her first year of operation. Her cost of goods sold totaled $180,000. What was Rachel's Cupcake Shop's gross profit her first year?
$120,000
Compute the current ratio for a company whose current assets equal $425,000 and liabilities equal $200,000.
$2.13
Rachel had Gross fixed Assets totaling $65,000 for the year. Accumulated depreciation totaled $15,000. What did Net Fixed Assets total for the year?
$50,000
Rachel's Cupcake Shop had an accounts payable balance of $50,000, Long-term notes totaling $3,000, Mortgaged totaling $50,000, and Short-term notes totaling $22,000. What is Rachel's Total Current debt as shown on a balance sheet?
$72,000
Focus strategies can be set up by which of the following ways
-By restricting the target market to a single subset of customers -By emphasizing a single product or service -By limiting the market to a single geographical region -By concentrating on the superiority of the product service
Compute the total asset turnover for a company whose sales total $785,000, total debt is $275000, total assets total $920,000, and have operating profits totaling $150,000.
.85
Compute the return on equity for for a company whose net assets total $600,000, sales total $350,000, net profits total $85,000, and owner's equity totals $700,000.
12.14%
Compute return on assets for a company whose net profits today $70,000, Operating profits total $150,000, total assets are $830,000, and a total debt of $250,000.
18.07%
Compute the debt ratio for a company whose sales total $785,000, total debt is $275,000, assets total $920,000, and operating profits total $150,000.
29.89%
In evaluating the financial health of a firm, the first step is reviewing financial statements and tax returns for the past _____ year(s).
3-5
Compute the operating profit margin for a company whose operating profits equal $300,000, sales equal $725,000, and assets equal $990,000.
41.38%
_____ refers to electronic commerce or the buying and selling of products or services over the internet.
E-commerce
_____ is by far the most common source of equity financing used to start a new business.
Personal savings
McDonald's operating a restaurant out of a Walmart is an example of
Piggy Back Franchising
All of the following are components an entrepreneur needs to forecast profitability, except...
depreciation
In a startup, where there is so much uncertainty, a business model forces an entrepreneur to be ______ and avoid wishful thinking about financial projections
disciplined
A person who pursues opportunities, in either a new or existing enterprise is known as a/an
entrepreneur
Raising new capital through _______ financing would mean giving up a part of a firm's ownership, and most owner's of small firms resist giving up control to outsiders.
equity
All of the following are components of a franchise cost, except
Approval Cost
One of the primary tools that a small business owner can use to manage cash flow is __________.
cash budget
Owner's equity in a business comes from 3 sources: investments, the owners make in the business, retained earnings, and cumulative profits.
False
A firm's _______ depends on the availability of cash to meet debt obligations.
Liquidity
_______ is an agreement in which the buyer promises the seller that he or she will not reveal confidential information or violate the seller's trust.
Nondisclosure agreement
Central to the entrepreneurship process, _______, is identifying imaginative new products or services that may lead to business ventures.
Opportunity recognition
The following are factors that determine the nature and degree of competition in an industry, except
Socialcultural
A ______ model could be considered the center of the e-commerce universe. In this model a website is setup to provide a mechanism for buying and selling products or services.
Transaction-based
Assets are always grouped into 3 categories, they are Current Assets, Fixed Assets, and Other Assets.
True
A small business can be defined as having fewer than _______ employees.
500
Research has found that _____ of all full-time workers are not involved in, enthusiastic about, or committed to their work
52%
Which of the following are key factors in determining a good business location?
Customer accessibility, resource availability, site availability and cost, business environment conditions
Profits and cash flows are the same thing.
False
Relationships among family members in a business are less sensitive than relationships among unrelated employees
False
"Pure" entrepreneurs can also be know as
Founders
A _____ is a detailed statement of such information as the franchisor's finances, experience, size, and involvement in litigation
Franchise Disclosure Document (FDD)
All of the following ate examples of how to fail as an entrepreneur, except
Hire knowledgeable, hard workers
The ______ has become the first stop for consumers who need information on a local business
Internet
An assessment that provides a concise overview of a firm's strategic is known as a/an
S.W.O.T. Analysis
S.W.O.T. Analysis stands for
Strengths, Weaknesses, Opportunities, and Threats
______, one of the five factors in screening business ideas, says that businesses are more likely to thrive if the focus is on a sizable market that is easy to identify, grow rapidly, and is composed of customers with high levels of purchasing power
Target markets and customers
In some situations, new franchisees of some franchise organizations have felt misled about their earnings opportunities
True
New and often costly provisions is a common complaint when letting a franchise contract expire
True
According to the Business Paradigm all of the following are traits of a manager except
Visualized the future
