Intro Bus-Chapter 5

Which of the following is a disadvantage of small-business ownership?

High failure rate

The business plan should do all of the following except

act as a constraint that limits the business's flexibility and decision making.

Persons or organizations that agree to provide some funds for a new business in exchange for ownership interest or stock are called

venture capitalists.

Echo boomers

were born between 1977 and 1994.

Advances in _____ have opened many new markets for small businesses, allowing them to more effectively expand their businesses and marketing efforts into new markets.

technology

A precise statement of the rationale for a business and a step-by-step explanation of how it will achieve its goals is a

business plan.

Small businesses usually only have one layer of management, making them more ______ and able to adapt to market demands.

flexible

A license to sell another's products or to use another's name in business is called a

franchise

The Small Business Administration

is an independent agency of the federal government to provide managerial and financial assistance to small businesses.

Downsizing helps firms to become

more flexible.