Intro-Into-Business: Ch. 6 Learn Study: Practice

match the goals with the type of business person. A. Entrepreneur B. Micropreneur 1. Desire to grow the business and generate wealth. 2. Desire to remain small and balance lifestyle with work.

A. = 1. B. = 2.

Small companies started by entrepreneurs may grow into large corporations that employ thousands of people. Match the entrepreneurs below with the corporations they started. A. Amazon.com B. Avon C. Kodak D. Facebook E. Starbucks 1. Jeff Bezos 2. Howard Schultz 3. Mark Zuckerberg 4. David McConnell 5. George Eastman

A. = 1. B. = 4. C. = 5. D. = 3. E. = 2.

Select the characteristics of an entrepreneurial team that will be developing and marketing a new product. A. Each from different areas of business B. Members have complementary skills and are creative C. A group of experienced people D. Members compete with each other in order to receive individual credit for outputs

A. Each from different areas of business and B. Members have complementary skills and are creative and C. A group of experienced people

There are many good reasons for going global. Which of the following are examples of such reasons? A. Exporting can absorb excess inventory B. Exporting can extend product life C. Exporting can simplify shipping needs D. Exporting can reduce the amount of bureaucratic paperwork

A. Exporting can absorb excess inventory and B. Exporting can extend product life

Two advantages small firms have over large firms include more personal customer service and the ability to respond quickly to: A. large increases in demand B. opportunities C. employee benefits needs for better benefits D. employee requests for higher wages

B. 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): A. corporate business B. small business C. big business D. independent business

B. small business

A business plan is a detailed written statement the describes: A. a demand forecast of employees B. the resources and qualifications of its owner(s) C. the advantages of using a chosen bank D. the target market

B. the resources and qualifications of its owner(s) and D. the target market

__________ are creative who work as entrepreneurs within corporations.

Intrapreneurs

Wayne is starting a small business, but needs help with management training, financial advice, and loans. He should contact the __________ __________ __________.

Small Business Administration (SBA)

T/F: Personal savings, venture capitalists, and government agencies such as the Small Business Administration (SBA) are possible sources of capital and information when starting a small business.

True

__________ __________ are individuals or companies that invest in new businesses in exchange for partial ownership of those businesses.

Venture capitalists

It is extremely important to develop a(n) __________ __________ before going to a bank for a loan, because it shows that you are ware of who the target market is, who the competition is, how much money you need, and exactly how you intend to turn a profit.

business 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.

business plan

A(n) __________ assumes risk when deciding to start and run a business.

entrepreneur

Gaining financing, knowing how to get started in exporting, and navigating bureaucratic paperwork are major hurdles to consider when getting started in __________ business.

global

According to recent study, offering low-cost offices with basic services to new businesses in the early stages of __________ graduates.

incubator

The SBA determines whether a business is considered "small" only analyzing how a particular business measures up compared to other businesses in its ____________.

industry

A necessary and invaluable aid to entrepreneurs is a competent, experienced __________ who knows and understands small business. This person can help with leases, contracts, partnership agreements, and protection against liabilities.

lawyer

Entrepreneurs who are not interested in starting a mammoth corporation, but rather are interested in a balance between lifestyle and work are called __________

micropreneurs

Factors like the customer needing a lot of personal attention, the product not being easily made, and sales not being large enough to appeal to a larger firm all create opportunities for __________ business success.

small

Which of the following is true regarding businesses with low failure rates, such as veterinary services, dental practices, and medical practices? A. They grow very large in a short time. B. They tend not to produce much growth. C. They are easy to start. D. They often require advanced training to start.

B. They tend not to produce much growth. and D. They often require advanced training to start.

An inexpensive marketing research study may help you determine which of the following? A. How to lower the cost of your product or service B. Where to locate C. Whom to select as your target market D. What is an effective strategy for reaching your target market

B. Where to locate and C. Whom to select as your target market and D. What is an effective strategy for reaching your target market

Ahmed is the owner of a small U.S. shoe manufacturing business. He knows he could export some of his shoes, but he does not know if they fit other markets. Also, he cannot afford to hire an international trade expert. What does this situation demonstrate? A. Why some people are not cut out to be entrepreneurs B. Why overseas exporting is a poor business decision C. Why many small business have difficulty engaging in global business

C. Why many small business have difficulty engaging in global business

At what point is it most important to make your marketing decisions? A. After you have introduced a product B. Only if the sales of your product have began to drop C. After you have opened a store D. Long before you introduce a product or open a store

D. Long before you introduce a product or open a store

__________ help the country prosper by taking risks and creating thousands of jobs that generate wealth and strengthen the economy.

Entrepreneurs

Select all that are true of entrepreneurs. A. create thousands of jobs B. strengthen the economy C. help the country prosper D. require articles of incorporation

A. create thousands of jobs and B. strengthen the economy and C. help the country prosper

If you want to be both independent and rich, you need to pursue a business with high: A. growth B. reliability C. retention D. stability

A. growth

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: A. manage customer records B. follow the daily sales and expenses C. travel to other area businesses D. lengthen their daily working hours

A. manage customer records and B. follow the daily sales and expenses

Entrepreneurial attributes include: A. tolerant of uncertainty B. above average wealth C. action-oriented D. highly energetic

A. tolerant of uncertainty and C. action-oriented and D. highly energetic

Venture capitalists try to safeguard their investment by taking some control over the business. What could happen if venture capitalist takes too large a stake in your company? A. You could run out of money. B. You could lose control of the business. C. You could gain control of the business. D. You could destroy employee morale.

B. You could lose control of the business.

A market consists of consumers with unsatisfied wants and needs who have both resources and the willingness to: A. demand B. buy C. sell D. supply

B. buy

For launching and operating a small business, what resources are often available through colleges and universities? A. low-interest business loans B. interns C. business professors D. master of business administration students

B. interns and C. business professors and D. master of business administration students

One of the greatest advantages small businesses have is the ability to know their customers better and: A. increase supply as much as needed B. obtain the needed financial resources C. adapt quickly to their needs D. benefit from economics of scale

C. adapt quickly to their needs

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. A. business B. franchise C. entrepreneurial D. creative

C. entrepreneurial

The program through which private investment companies licensed by the Small Business Administration lend money to small businesses called the: A. Private Licensed Lending Company B. Small Business Administration Company C. Entrepreneur Assistance Lending Company D. Small Business Investment Company

D. Small Business Investment Company

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: A. business owners can save money by hiring an apprentice B. all apprenticeships work well C. having your own business allows one to take long vacations D. apprenticeships can benefit both the business owner and the apprentice

D. apprenticeships can benefit both the business owner and the apprentice

The SBA microloan program awards loans based on belief in the borrowers' integrity and: A. potential positive environmental impact of the business B. potential return on SBA's investment C. collateral and credit history D. the soundness of their business idea

D. the soundness of their business idea

Which of the following regarding high-growth businesses (e.g., technology firms) are true? A. They are extremely difficult to keep going. B. They are easy to start. C. They are difficult to start. D. They are easy to keep going.

A. They are extremely difficult to keep going. and C. They are difficult to start.

Working in a successful business is a good way to learn the operations and could: A. be a step in buying out the owner B. be unethical C. teach bad business habits D. lead to a loss of time and money

A. be a step in buying out the owner

Some common causes of small business failure include: A. no experience in that business or industry B. starting with too little capital C. overestimating time needed to build the business D. underpricing or overpricing goods or services

A. no experience in that business or industry and B. starting with too little capital and D. underpricing or overpricing goods or services

Entrepreneurs must recognize that they need competent and motivated employees. Since they can't compete with larger firms' pay and benefits, they need to: A. provide more challenging opportunities to learn B. delegate more often C. pay higher wages and provide more benefits D. be respectful of employees' opinions

A. provide more challenging opportunities to learn and B. delegate more often and D. be respectful of employees' opinions

Started by the Small Business Administration in 1991, the __________ program provides very small loans (up to $50,000) and technical assistance to small-business owners. A. help B. microloan C. start-up D. finance

B. microloan

John started his small business with only a few employees, but in a few years had twice as many. The community around his business also flourished, partly helped by a new stream of money. This exemplifies: A. how to start a business B. how to eliminate business competition C. how small businesses influence the economy D. the large demand for landscaping

C. how small businesses influence the economy