Business Ch 5 – Flashcards
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Business plan
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A carefully constructed guide for the person starting a business
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SCORE
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A group of retired and active business people who volunteer their services to small business through SBA
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SBA
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A government agency that assists, counsels, and protects the interests of a small business in the United States
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Venture capital
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Money that is invited in small (and sometimes struggling) firms that have the potential to become very successful
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Small-Business Institutes (SBIs)
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Group of senior and graduate students in business administration who provide management counseling to small businesses
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Small business
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A business that is independently owned and operated for profit and is not dominant in its field
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Franchisee
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A person or organization purchasing a franchise
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Franchise
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A licensed to operate an individually owned business as though it were a part of a chain of outlets or stores
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Franchising
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The actual granting of a franchise
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Franchisor
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An individual or organization granting a franchise
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True
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The SBA has to find a small business as one independently owned operated for profit and not dominant in its field
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False
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The various types of businesses attracting small business are generally grouped into service industries distribution industries and financial industries
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False
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Small businesses are generally managed by professional managers
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True
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Small firms have traditionally added more than their proportional share of new jobs to economy
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False
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Economically the US government is not concerned with whether or not small businesses make it
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False
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SCORE is a group of active business executives offering their services to small businesses for a fee
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False
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A small business investment company is a government agency that provides venture capital to small enterprises
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False
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The purchaser of a franchise is called the Franchisor
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False
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And agreement between two franchisors in which the two franchisors offer their products together is called double franchising
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True
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International trade will become more important to small business owners in the new century
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Mismanagement resulting from lack of business know know-how
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What is the primary reason that so many new businesses fail?
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Have a relatively low initial investment
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Businesses such as flower shops restaurants bed-and-breakfast is an automobile repair are good candidates for entrepreneurs because they?
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Entrepreneurial spirit
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An individual's desire to create a new business is referred to as?
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They over-expand without proper planning
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What is a common mistake that small business owners make when their businesses begin growing?
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Technical innovation
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The fact that insulin and power steering both originated with individual inventors and small companies as testimony to the power of small businesses as providers of
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Personal relationships with customers
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In her small retail shop Joslyn knows most of her best customers by name and knows their preferences and clothing and shoes this demonstrates which advantage of small business?
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She should consider alternative sources of financing because banks provide only a proportion of the total capital to small businesses
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Shonta started a graphic design firm a year ago. The business has done well but it needs a lot more equipment, computers, and employees to continue expanding. Shonta thinks she can get all the money she will need from her bank, what advice might you get to her?
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Retired and active business people from different industries
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Volunteers for SCORE are?
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Franchisor
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An individual or organization granting a license to operate an individually owned business as though it were part of the chain of outlets stores is a(n)?
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Consider purchasing a franchise
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Mnju ask for your advice and opening a new business. She plans to provide tax-related services to individuals and small business owners in her community. Of course she wants an attractive means of starting and operating her business with avreasonable hope of succeeding in it. What will be your advice?
