Business Essentials Chapter 5 worksheet – Flashcards
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Knowing about business only benefits you as an employee, not as a consumer
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false
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A small business, as defined by the SBA, serves a limited geographic area and employs no more than 100 people
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false
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A virtual business acts like a business, but is not a real business.
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false
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According to American City Business Journals, small businesses that use the Internet have grown more than 45 percent faster than those that do not.
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true
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The main reason people become entrepreneurs is to have the opportunity to be creative
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false
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Many successful entrepreneurs work in a related business before starting their own company.
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true
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Before you decide to start a particular business, you need to do market research to see if there is a demand for your product or service.
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true
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There are 10 essential parts of a business plan.
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false
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The executive summary of the business plan should be no more than two pages and should include the most important information from each section of the plan
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true
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The vision and mission statements in the business plan state the guiding principles by which a business functions.
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true
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____ is the process of recognizing a business opportunity, using market research to determine if there is a market for a product or service, and gathering the resources needed to go into business.
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entrepreneurship
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A new business undertaking that involves risk is called a
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venture
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All of the following are recommended traits for a career in entrepreneurship except being a. enthusiastic. c. a risk-taker. b. cost-conscious. d. goal-oriented.
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b
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A virtual business is a business that opperates on the ____
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internet
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Most U.S. businesses are
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sole proprietorships
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One of the biggest obstacles in starting a business is
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obtaining financing
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A written description of a business venture that describes all aspects of the business is called a
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business plan
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a ___ is used by potential investors to see if they want to invest in the business. top management involved in the start-up of a new business. the entrepreneur to keep focused on the goals of the business.
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business plan
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The ? section of a business plan helps investors understand the size of the business. the type of business. the scope of the business.
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company description
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a _____ statement establishes the scope and purpose of the company.
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vision
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In a business plan, research about the business's customers is included in the
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market analysis
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A brief account of the key points contained in a business plan is the
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executive summary
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All of the following are examples of an industry except a. medical supply companies. c. auto mechanics. b. financial service firms. d. food service businesses.
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c
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In a business plan, the description of the business's media plan is included in the
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marketing plan
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SBA is an acronym that stands for the
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small business administration
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Unlike people who run corporations and partnerships, ______ do not have to consult with others before making a decision.
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entrepreneurs
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A ___________ is owned and run by two or more people.
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partnership
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About four out of five businesses fail in their first __ years.
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5
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To determine if there is a demand for your product or service, you must do _________.
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market research
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The ______ looks at likely risks to the business, such as lower-than-expected sales and emergencies that might affect it. It then suggests a way to minimize risk.
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contingency plan
