BADM Chapter 6 – Flashcards
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After personal savings, the next largest source of capital for entrepreneurs is from:
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Friends and family
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Historically entrepreneurs in the U.S.
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started many small firms that later became major corporations employing thousands of workers
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Which of the following best describes entrepreneurial personality traits?
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Tolerant of uncertainty and highly energetic
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The executive summary section of the business plan contains:
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information that will capture the attention of bankers and other investors who receive many business plans every day
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The goal of an intrapreneur is:
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to develop new products and generate new profits for the corporation
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The SBA's_________ program provides export-financing opportunities for small businesses.
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Export Express loan
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Using the analogy of boulders vs. sand for filling a hole, the textbook points out that:
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small businesses can serve niche markets that larger firms do not serve well
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A____________ refers to the people with unsatisfied wants and needs who are willing and able to buy a product or service.
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market
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One reason why many U.S. small businesses are not involved in exporting is:
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many of these firms do not know how to get started
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Which of the following best describes the outlook for small businesses in international markets?
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the world is a larger, and potentially a more lucrative market than the U.S. domestic market
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Which of the following statements in NOT a challenge for home-based businesses?
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affordable technology such as the Internet
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Which of the following statements accurately depicts an advantage that small business has over big business?
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A small business can maneuver and change quicker than most large businesses can. It can react to market conditions and customer concerns much faster
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Entrepreneurs applying for a bank loan should realize that banks will:
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expect the entrepreneur to provide a business plan
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A market consist of potential buyers of a good or service. However, for a market to exist:
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people must have unsatisfied wants and needs as well as a willingness and ability to buy
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Entrepreneurs looking for a business that gives them the best opportunity to get rich should consider starting a business in:
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the manufacturing sector
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A good business plan will:
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describe all aspects of the business, including product, the target market, the nature of the competition, any financial resources, and the owner's qualifications
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Small business owners often struggle in attracting qualified workers. Which of the following contributes to this problem?
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Many jobs in small firms have low pay and few benefits
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Which of the following best describes the difference between an intrapreneur and a entrepreneur?
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Intrapreneurs work within existing corporations while entrepreneurs assume the risk of starting their own business
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One reason we have seen continued growth in homes-based businesses is:
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affordable computer and information technology makes it easier to compete
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Small businesses:
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deal with similar management issues that large companies face
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An entrepreneurial team consist of:
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experienced professionals from different areas of business
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Bankers and potential investors are likely to read_________ first.
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the executive summary
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Which of the following suggestions would an experienced business owner offer to help someone who is thinking about starting a business venture?
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Gain experience by working for a successful businessperson
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Enterprise zones are:
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specific locations across the U.S. where entrepreneurs can set-up shop and receive tax breaks for operating in these areas
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Due to the credit crunch during the recent recession, many small businesses found that_________________ were more willing to lend money to smaller operations.
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smaller, community banks
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A Small Business Investment Company (SBIC) is a(n):
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private investment company that is licensed by the SBA to make loans to small businesses
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Affiliate marketing is a web-based business strategy that:
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rewards individuals who are willing to link a company's website to their blog or social network
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A successful web-based strategy that helps a business spread the world about its website and products is called_________________.
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affiliate marketing
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One of the challenges of running a home-based business is:
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keeping work and family separate
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______________ are private individuals who invest their own money in potentially hot new companies before these firms become larger, publicly traded companies.
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Angel investors
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Small businesses create about__________ percent of the new jobs in the U.S.
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60-80
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The Spotlight on Small Business box "Earning While Learning" features students who
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turned a social passion into a business opportunity
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Successful small business owners are:
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valuable sources for information since you can learn from their experiences
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A business's size is measured:
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in relation to other firms in its industry
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A firm or individual providing financial capital to small businesses in exchange for an ownership stake in the company is called a:
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venture capitalist
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The business plan will include_________________.
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an analysis of the competition
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Employees of small businesses often have greater job satisfaction than do employees of large firms. One reason for this difference in job satisfaction is that employees of small businesses often:
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get more respect from their bosses
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A review of small business success and failures indicates that the:
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businesses with potential of high profit levels tend to be difficult to start and hard to keep going
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Successful entrepreneurs are self-nurturing. This means they:
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believe in themselves and their ideas
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One of the hurdles small businesses face when deciding to export is:
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financing is often difficult to find
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Which of the following statements explains one of the reasons that people in the U.S. take the entrepreneurial challenge?
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It's about independence and the opportunity to share in the American dream
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Conversation with people who start their own business often reveal that:
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many small business owners got their entrepreneurial idea from a previous job
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Intrapreneurs make use of___________ to develop and launch new products and generate new profits.
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their employer's existing human, financial, and physical resources
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A small business management course at a community college may offer entrepreneurs an opportunity to:
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meet with experienced entrepreneurs and learn from their advice
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Which of the following is NOT a reason stated for small business failure?
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Buying too little on credit and not being lenient enough with your credit paying customers
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A creative person working within a corporation to launch new products and generate new profits is known as a(n):
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intrapreneur
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Business owners who prefer to maintain their businesses at a manageable size are called:
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micropreneurs
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A(n)_____________ is a valuable source of information regarding techniques to reduce a firm's exposure to risk.
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insurance agency
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Similar to how large business proceed, small businesses make marketing decisions_______________.
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before a product is developed or store is opened
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Small businesses often have advantages in international markets. One advantage is:
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individualized customer service as opposed to impersonal corporate bureaucracies
