GEB 1011 Business Principles Chapter 6 Smartbook
Most entrepreneurs get ideas for products and services ______.
from looking around and asking questions
Wayne is starting a small business, but needs help with management training, financial advice, and loans. He should contact the _______ ________ __________.
"Blank 1: Small or S Blank 2: Business or B Blank 3: Administration or A"
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.
"Blank 1: business Blank 2: plan
Adam hopes to show the bank's lending manager that he is aware of who the target market is, who the competition is, how much money he needs, and exactly how he intends to turn a profit by supplying him with a(n)_____ ______.
"Blank 1: business Blank 2: 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.
"Blank 1: business Blank 2: plan"
What is a good tactic for entrepreneurs to implement in order to keep a new company growing?
delegate authority to employees
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
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
Although there are many functions that are important in both the start-up and management phases of the business, what two functions are considered to be primary concerns?
planning and financing
The Small Business Administration (SBA) is the U.S. government agency that advises and assists small businesses by:
providing management training providing loans providing financial advice
After working for a large auto manufacturing company for over 20 years, Silvia decided to start her own auto accessory store. While facing new challenges every day, Silvia enjoys being free to manage her company as she desires. This example illustrates:
why people take the risks of entrepreneurship
Match the goals with the type of business person.
Entrepreneur matches ChoiceDesire to grow the business and generate wealth. Micropreneur matches ChoiceDesire to remain small and balance lifestyle with work.
Select the characteristics of an entrepreneurial team that will be developing and marketing a new product.
A group of experienced people , Each from different areas of business, Members have complementary skills and are creative
What is the "Executive Summary" component of a business plan?
A short description of the business along with major goals and objectives
Identify the principle characteristic of an entrepreneur.
A tendency toward self-discipline
What two advantages do small businesses have over larger companies?
Able to respond quickly to opportunities, More personal customer service
What is the best definition of entrepreneurship?
Accepting the risk of starting and running a business
Which part of the business plan summarizes the most attractive points of your project in as few words as possible?
Cover letter
A good business plan is between 25 and 50 pages long and takes many months to write. A comprehensive business plan will include which three items?
Cover letter Company background Executive summary
What section of a business plan is intended to catch the readers interest quickly and convince them to read it further and not throw it away?
Executive Summary
True or false: Addressing the cover letter on your business plan "To whom it may concern" is considered preferable.
FALSE
There are a few hurdles that prevent many small businesses from engaging in the global market. Which of the following are examples of such problems?
Financing is often difficult to find. Would-be exporters do not know how to get started.
______ are creative people who work as entrepreneurs within corporations.
Intrapreneurs
What advice would established entrepreneurs likely tell a new, would-be business owner?
Make sure your business is not undercapitalized.
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 would have addressed?
Marketing Financing Planning
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?
Marketing plan
What is the outlook for online businesses?
Online sales are projected to increase.
"Which of the following are good ways to learn how to run your own business?
Run a small business during your off hours Talk to other business owners Work for a successful entrepreneur
The SBA defines a____business as one 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.
Small
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
True or false: The principles of management are similar for a small neighborhood business and a giant global firm.
TRUE
What term is given to individuals or companies that invest in new businesses in exchange for partial ownership in those businesses?
Venture capitalists
An inexpensive marketing research study may help you determine which of the following?
Whom to select as your target market What is an effective strategy for reaching your target market Where to locate
Which of the following are good ways to learn how to run your own business?
Work for a successful entrepreneur Run a small business during your off hours Talk to other business owners
What advice is helpful for someone wanting to learn small-business management?
You should become an apprentice or work for a successful entrepreneur.
Select the characteristics of an intrapreneur.
a creative person who works within a corporation someone who uses company's resources to launch new products he or she generates profits by leveraging a firm's human financial and physical resources.
All consumers with unsatisfied wants and needs who have both resources and the willingness to buy are:
a market
To keep track of daily sales, expenses, profits, inventory control, customer records, and payroll a small business needs a good
accounting system
What is included in a business plan?
an analysis of the competition
What type of business relationship benefits both a trainee and a business owner and occurs when a trainee is hired to learn small-business management while assisting the owner in getting daily work done?
apprenticeship
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 ______.
apprenticeships can benefit both the business owner and the apprentice
Since entrepreneurs can't compete with larger firms' pay and benefits, what are three ways they can motivate employees?
be respectful of employees' opinions maintain good employee relations provide more challenging opportunities to learn
There are a few hurdles that prevent many small businesses from engaging in the global market. Which of the following are examples of such problems?
bureaucratic paperwork difficulty finding financing understanding cultural differences
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.
business
An _____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
business plan
If you want bankers or other investors to provide capital for your business venture, it is essential that you have a(n) ______ before you talk with them
business plan
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) Blank______.
business plan
What two tasks are important to complete when writing a business plan?
calculate how much money you need to start analyze the competition
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.
entrepreneurial
Some causes of small-business ______ include underpricing or overpricing goods or services, starting with too little capital, going into business without first learning something about the industry or market, and underestimating how much time it will take to build a market.
failure
Managing a small business became relatively easy with the advent of inexpensive personal computers. Inexpensive computer systems and off-the-shelf or even free, open-source software make it easy for the small business manager to _____.
follow the daily sales and expenses manage customer records
Gaining financing, knowing how to get started in exporting, and navigating bureaucratic paperwork are major hurdles to consider when getting started in ____business.
global
What are three attributes of successful entrepreneurs?
highly energetic action-oriented tolerant of uncertainty
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:
increasing
According to a recent study, offering low-cost offices with basic services to new businesses in the early stages of development results in an 87% success rate of___graduates.
incubator
"All organizations require the following:
information management capital planning
The best way to define a(n) ________is all consumers with unsatisfied wants and needs who have both resources and the willingness to buy.
market
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?
marketing plan
Classes on small business and entrepreneurship offered at a local community college offer prospective business owners the chance to ______.
meet with experienced entrepreneurs to get advice and form support networks
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
Some common causes of small business failure include:
no experience in that business or industry underpricing or overpricing goods or services starting with too little capital
A small business is defined as:
one that is not dominant in its field one that is independently owned and operated one that meets certain standards of size in terms of employees or receipts
Two advantages small firms have over large firms include more personal customer service and the ability to respond quickly to ______.
opportunities
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):
small business
What two items are described in a business plan?
the resources and qualifications of its owner(s) the target market
What four items are addressed in a business plan?
the target market qualifications of owners any competitive advantages the business has the nature of the business
Naomi invests in new businesses in exchange for partial ownership in those businesses. Naomi is a(n)______.
venture capitalist