MGMT310 Small Bus

Provide positive cash flows immediately

A start-up often does not

Favored Purchasing

An Entry wedge related to policies that provide for quotas for buying from small businesses.

Value Benefits

Characteristics related to the nature of a product or service itself:

Imitative; Innovative

Most small Businesses are more________ than _______.

Consumer

Refers to a private individual or household that is the end-user of a product or service.

Boom

Industry life cycle growth stage marked by a rapid increase in sales in a short time.

Book Value

The difference between the original acquisition cost and the amount of accumulated depreciation

Magic Number

The post-tax income the entrepreneur personally seeks from the business:

the point of indifference

The price at which a buyer is indifferent about buying or not buying the business

Single-mindedness

Which of the Following is a small business supra-strategy?

Government intervention

Which of the following is NOT part of Porter's Five-Forces model?

Obtain sufficient capital to purchase & operate the business

Which of the following is the LAST step performing due diligence?

They are inexpensive and quick to start

Which of the following is true with regard to home-based businesses in the United States?

High Margins

Which of the following provides a buffer for the mistakes made by a start-up business?

Franchising

Which of the following requires a full-time approach to self-employment.

Overlooked Competition

Which of the followings a critical risk to a business?

Moonlighting

Working on one's own part-time business after a regular job is referred to as:

Acquiring a competitor

______ is a strategic action

Scope

______ refers to the geographic range covered by the market

Scale

________ refers to the size of the market

Discounted cash flows

_________________ is a method for determining the value of a business you might purchase.

Chargeback

a fee that a firm might incur for any variety of problems related to the sale.

trade name franchising

an agreement that provides to the franchisee only the rights to use the franchisor's trade name and/or trademarks