Term
A small business is defined as a business that
-is publicly owned by many shareholders
-has less than 50 employees
-has annual revenues less than one million dollars
-has sales and assets too small to influence its environment |
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Definition
| Has sales and assets too small to influence its environment |
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Term
More than 86 percent of the nation's businesses
-employ 20 or fewer people
-employ 10 or fewer people
-are successful
-survive more than 5 years |
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Definition
| Employ 20 or fewer people |
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Term
Small businesses are important to large businesses because
-they consume the products of large businesses
-they are suppliers to large businesses
-they are weak competitors
-they don't try to control their environments |
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Definition
| They are suppliers to large businesses |
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Term
Small businesses are usually strongest in industries that
-require high capital investment
-require flexibility and personal working relationships
-benefit from economies of scale
-have many substitutes available |
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Definition
| Require flexibility and personal working relationships |
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Term
Economies of scale often shift when
-competitors leave the market
-government policies change
-technology changes
-customers' preferences change |
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Definition
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Term
Small businesses are better than larger businesses at
-making decisions
-operating in established markets
-financing new technologies
-identifying new markets |
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Definition
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Term
The most important element in most small-business plans is the
-statement of goals and objectives
-cash budget
-sales forecast
-breakeven chart |
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Definition
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Term
The fastest growing segment for small businesses is
-services
-retailing
-construction
-manufacturing |
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Definition
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Term
The most common source of financing for entrepreneurs is
-venture capitalist
-government grant
-bank loan
-personal resource |
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Definition
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Term
An advantage to entering into a franchise agreement when starting a new business is
-relatively low costs
-an established identity and image
-an opportunity to put a personal stamp on the enterprise
-flexibility to change operations |
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Definition
| An established identity and image |
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Term
Students and professors of business administration assist small businesses through a federal program known as
-ACE
-SBI
-SCORE
-SBDC |
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Definition
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Term
Small organizations are often better than large ones in finding a(n) __________ in established markets
-niche
-economies of scale
-business plan
-venture capital |
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Definition
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Term
An entrepreneur summarizes the business strategy and how that strategy will be implemented in a
-first-mover advantage
-technology transfer
-business plan
-financial plan |
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Definition
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Term
An advantage of buying an existing business rather than starting from scratch is that
-the start-up owner is free to choose suppliers
-existing businesses may have pre-existing problems
-it is easier to get an accurate financial picture of an existing business
-the new owner is known to the market |
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Definition
| The new owner is known to the market |
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Term
Over time, one of the most important determinants of small-business success is
-managerial competence
-competition from large businesses
-willingness to take risks
-insufficient start up funds |
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Definition
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Term
A rule of thumb is that an entrepreneur should have enough personal resources to live without funds from the new business for a period of at least
-six weeks
-six months
-three months
-two years |
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Definition
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Term
Venture capitalists assist start up companies by
-providing low-interest loans
-exceeding personal resources as sources of start up funds
-providing high-interest loans
-supplying capital in exchange for stock |
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Definition
| Supplying capital in exchange for stock |
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Term
Which of the following does not account for the trends in small-business start ups?
-emergence of e-commerce
-increased availability of government funds for loans
-entrance of women and minorities
-increased chances of success by small businesses |
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Definition
| Increased availability of government funds for loans |
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Term
An advantage that comes to a firm because it exploits an opportunity before any other firm is
-entrepreneurship
-business planning
-first-mover advantage
-economies of scale |
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Definition
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Term
An individual who actively seeks to invest in a new business is
-a venture capitalist
-risk averse
-a franchisee
-a sole proprietor |
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Definition
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