question

business life cycle (4 stages)

answer

multiple stages of life cycle, stages are 1. Emergence 2. Existence 3. Success 4. Resource Maturity

question

If you are talking about a variety of business prospects before finally settling on an idea, which stage of the BLC are you in?

answer

Emergence

question

In 2002, ___% of people expressed an interest in owning their own firm, and ___%of young adults wanted to start their own firm, but only ___% of population was taking steps to start a firm

answer

In 2002, 50% of people expressed an interest in owning their own firm, and 80%of young adults wanted to start their own firm, but only 7% of population was taking steps to start a firm

question

If you have a lot of ideas, a fair amount of merchandise, an absolutely certain set of overhead costs, but no guarantee of sales, what stage of the BLC are you in?

answer

Existence

question

________ is the second riskiest period of the BLC after ________

answer

Existence is the second riskiest period of the BLC after emergence

question

Liabilities of newness (3)

answer

lack of skill in either 1.marketing 2.production 3.management

question

If you have established a market, and are gaining profits for expansion, which stage of the BLC are you in?

answer

Success

question

According to Woody Allen, what % of success is showing up?

answer

80%

question

Slack Resources

answer

Profits that can be re-channeled into the business if needed

question

What is the longest lasting stage of the BLC

answer

Success stage

question

What do most owners call slack resources?

answer

Flexibility

question

If your company has a stable level of sales and profits over several years, which stage of the BLC are you in?

answer

Resource Maturity

question

4 key components to staving off customer complacency

answer

1. Recency 2. Frequency 3. Potency 4. Recommendation

question

Recency

answer

Being the most recent thing your customers have seen in the past few days

question

Frequency

answer

Keeping in touch with customers on a frequent basis

question

Potency

answer

making your advertisement remembered, and remembered for the right reasons

question

Recommendation

answer

Making clear recommendations to your customers that can help your customers create a memorable way to show that you think about/care about your customer

question

Takeoff

answer

When the success stage, instead of moving to the resource maturity stage, moves to a stage of exceptional growth.

question

overall growth strategy

answer

describes the kind of business the owner would like to have, from the perspective of at what level they want the firm to grow.

question

lifestyle or part-time firms

answer

small income businesses, provides enough profit or salary to supplement an income but not enough to live on.

question

Traditional small businesses

answer

full time businesses, usually one-site businesses with medium sales, generally make enough money for the living of the owner and family

question

high-performing small businesses

answer

high growth, high sales businesses, growing through multiple locations with high level of professionalization

question

high-growth ventures

answer

extremely high growth rate, high sales numbers, these firms aim to become big businesses and pursue high levels of professionalization/external funding

question

harvest

answer

when entrepreneurs try to get some of the value of the hard work they put into the business over the years

question

initial public offering

answer

when a business sells its stock to the public on a major stock exchange

question

mergers

answer

when firms combine to create one mutually beneficial company

question

aquisitions

answer

when one firm absorbs another firm through purchase

question

consolidation

answer

when a company buys up many smaller competitors to form a giant firm

question

employee stock ownership plan

answer

tax protected way to sell a firm to its employees (very rare)

question

tranfers

answer

moving ownership from one legal entity, person, or group, to another

question

terminations

answer

closing down the business

question

liquidity enhancement

answer

arranging to generate cash to cover the estate taxes

question

tax management

answer

structure your transfer to make tax payments as small and manageable as possible

question

estate freeze

answer

depends on moving assets from the entrepreneur to the heirs when they are worth less.

question

pass off

answer

giving away a firm to someone as a gift without compensation

question

sell off

answer

selling the individual assets of a company and using the money to meet obligations, maybe even turning profits

question

bankruptcy

answer

uses a legal method of closing a business and paying off debts

question

walkaways

answer

business termination where the entrepreneur ends the business with its obligations met

question

reorganization

answer

bankruptcy, but your debt is renegotiated and lowered

question

serial entrepreneurs

answer

people who start multiple businesses in their careers

question

after 4 years, ___% of owner only firms fail in 4 years and _____% of clients of the small business development centers are still strong after 5 years

answer

after 4 years, 50% of owner only firms fail in 4 years and 81.5% of clients of the small business development centers are still strong after 5 years

question

4 bottom lines are

answer

1. the firm 2. the community 3. the family 4. yourself

question

supplemental profits

answer

secondary income

question

substitution profits

answer

intended to equal and replace the salary or wages the entrepreneur could draw working somewhere else

question

success profits

answer

income level higher than the person could make working for others

question

manufacturer

answer

entity which produces a product or service to be sold

question

word of mouth

answer

spreading information about your business through the comments friends and customers make

question

direct sales

answer

going directly to your customers (door to door salesmen)

question

direct mail

answer

postcards, catalogs, videos, sales letters, brochures, etc. etc. mailed directly to customers

question

microinventory

answer

set of goods or services that consists of only one or a few items

question

direct response advertising

answer

when you place an ad somewhere, and you wait for the orders to come in.

question

guerrilla marketing

answer

unusual and nearly free advertising (flyers under windshield wipers, waving signs at people driving by)

question

multi-channel marketing

answer

using several outlets for contacting your customers

question

fulfillment center

answer

centers that will warehouse your product, pack/ship them, and send an automated email to your customers

question

born internationals

answer

firm that opens a web site immediately, thus being exposed to customers from around the world

question

freight forwarders

answer

firms specializing in arranging international shipments

question

trade missions

answer

when united states government sends people on tours in other countries to attempt to gain exports to those countries

question

typically 3 places services can be performed

answer

1. clients location 2. mutually accessible location 3. firm's location

question

contract manufacturing

answer

existing firm with manufacturing capabilities makes your product for you

question

sheltered workshop

answer

nonprofit organization that provides business services by using handicapped or rehabilitated workers

question

marketing plan

answer

systematic written plan of all phases of marketing for a business, including information on the product, price, distribution, and promotion strategy

question

marketing research

answer

collection and interpretation of data to support future marketing decisions

question

ethnographic research

answer

data gathered by simple observation

question

scalar questions

answer

"on a scale of 1 to 5"

question

dichotomous questions

answer

questions with only 2 answers

question

categorical questions

answer

questions answered by selecting the proper category

question

differential advantage

answer

"competitive advantage". What sets you apart from the rest

question

4 P's

answer

product place price promotion

question

undifferentiated strategy

answer

marketing strategy that uses no segmentation, assumes all customers have identical needs

question

differentiated strategy

answer

a marketing strategy in which a marketer selects two or more distinct groups of consumers and meets their needs

question

concentrated strategy

answer

marketing strategy in which a marketer selects ONE specific group of consumers and meets their needs

question

cash-to-cash cycle

answer

time required for a business to acquire resources, convert them into product, sell the product, and receive cash from the sale

question

payables

answer

amounts owed to someone else

question

receivables

answer

amounts owed to you from someone else

question

clearinghouse

answer

entity that processes checks and electronic fund transfers for banks and other financial institutions

question

float

answer

delays in the movement of money among depositors and banks

question

cash budget

answer

identifies when, how, and why cash is expected to come into, or leave the business

question

noncore projects

answer

revenue-producing tasks and activities related to, but not part of, the primary strategy of a business

question

consignment

answer

act of accepting goods for resale without taking ownership of them and without being responsible to pay prior to their being sold

question

gaming the payment process

answer

using methods to appear to be paying bills on time, when in fact payment is being delayed or avoided

question

growth trap

answer

financial crisis that is caused by a business growing faster than it can be financed

Entrepreneurial small business Test 2 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards