Business Principles: Chapter 5 – Flashcards
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Entrepreneurship is the process of creating and managing a business to achieve desired objectives.
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True
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The entrepreneurship movement is declining because of technological advances.
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False
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Retailing attracts entrepreneurs because gaining experience and exposure in retailing is relatively easy.
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True
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A drawback in franchising is the need for franchisees to strictly adhere to standardized operations.
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True
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A __ is the process of creating and managing a business to achieve desired objectives.
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Entrepreneurship
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A __ is best described as any independently owned operated business that is not dominant in its competitive area and does not employ more than 500 people.
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Small Business
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The Small Business Administration (SBA) is a(n):
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independent agency of the federal government that offers managerial and financial assistance to small businesses.
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Which of the following is an advantage for small businesses that choose to enter the retailing industry?
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Retailing allows small business to focus on specific groups of consumers.
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Many service providers are considered retailers because they:
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provide their services directly to ultimate consumers.
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One of the major reasons people want to own and operate their own business is to:
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be their own boss
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Which of the following is an advantage of a small business?
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Greater adaptability to changing market demands
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Which of the following is a disadvantage of small-business ownership?
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Worries about employees problems or competition
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Which of the following is a reason behind the failure of small businesses?
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Poor business concept
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__ is best described as the lack of funds to operate a business normally.
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Undercapitalization
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The principle immediate threats to small and mid-sized businesses include:
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Escalating costs
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A business plan should do all the following EXCEPT:
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limit the business's flexibility and decision-making ability
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In the process of starting a business, the step that immediately succeeds the development of a business plan involves:
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deciding an appropriate legal form of business ownership
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To make profits from a small business, the owner must first provide or obtain __ to start the business and keep it running smoothly.
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capital
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Persons or organizations that agree to provide some funds for new business in exchange for ownership interest or stock are called ___.
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Venture Capitalists
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When an entrepreneur takes out a loan from a bank, the bank will require him to put up __, which is a financial interest in the property or fixtures of the business, to guarantee payment of the loan.
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Collateral
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A license to sell another's products or to use another's name is business, or both is called a __.
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Franchise
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One of the main drawbacks of franchising is that it requires the franchisee to:
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share the profits of the business with the franchiser
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Millennials number around 75 million and represent a huge business opportunity in the United States. Which of the following is a defining feature of the millennials?
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People born between 1977 and 1994
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Which of the following demographic segments should small retailers specializing in ethnic products and small service providers target?
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Immigrants
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Which of the following statements accurately describes intrapreneurs?
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Individuals in large firms who take responsibility for the development of innovations within the organizations are intrapreneurs.
