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Business Management Chapter 5 Flashcards | StudBud
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Business Management Chapter 5
Business Management Chapter 5
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Business Plan, entrepreneur
Flashcards
55 cards
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Questions
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Answers
1
Small businesses often fail because?
they lack necessary finances
they cannot respond to change
they lack entrepreneurial skills
they cannot meet the needs of the customer
2
A business plan is made up 16 essential parts with a logical format.
True
False
3
All of the following is an example of an industry EXCEPT?
medical supply companies
auto mechanics
financial services firms
food services businesses
4
One of the biggest obstacles in starting a business is
accepting responsibility
obtaining financing
being good at something
having a good idea
5
Entrepreneurs contribute to the community through investment and the creation of jobs.
False
True
6
It is believed that businesses that use the Internet grow 45% faster than other businesses
False
True
7
Many successful entrepreneurs work in a related field prior to starting their own business
False
True
8
The company description section of the business plan helps investors understand?
the type of business
the scope of the business
the size of the business
all of the above
9
SBA is an acronym that stands for the?
Small Business Administration
Start-Up Business Administration
Small Businesses of America
Small Businesses Agency
10
Most business failures are due to inadequate financial planning and management.
False
True
11
Which of the following is NOT a characteristic of an industry.
Each company in the industry is a competitor.
They provide complementary and different products.
They provide similar products and services.
Each company is financially dependent on the others.
12
Which of the following is NOT one of the 12 key characteristics of a successful entrepreneur.
Dependent
Action oriented
Persistent
Creative
13
Knowing about business only benefits you as an employee, not as a consumer?
True
False
14
What is the purpose of the contingency plan?
Determine what could go wrong
Providing a strict order of events
Explain how the venture will succeed
Identify how the company will grow
15
A small business, as defined by the SBA, employs no more than 100 people.
False
True
16
A virtual business acts like a business, but is not a real business.
True
False
17
The executive summary includes the most important information from each section of the plan.
True
False
18
Which of the following is a question that would be included in a new venture checklist?
What will I produce?
Why is my product or service needed?
Who are my main competitors?
How much will it cost to produce?
19
Which part of the business plan analyzes the latest trends?
Market analysis
Product and service plan
Competitive analysis
Industry overview
20
Market research is a good place to start before starting any type of business.
False
True
21
Which of the following would be a challenge of entrepreneurship?
Working long hours
Feeling alone and insecure
Facing uncertain income levels
Getting the appropriate finances
22
A vision statement?
explains why the venture will succeed
identifies specific goals of the business
establishes the scope and purpose of the business
include investors names
23
Making timely decisions is key to being a competitor in the business world.
True
False
24
Organizations such as schools and non-profits do not need a vision or mission statement.
False
True
25
Both the vision and mission statements state the guiding principles of the business plan.
False
True
26
A benefit to small businesses is that they create jobs.
True
False
27
The Small Business Administration can assist with writing a business plan.
True
False
28
Entrepreneurs introduce new products and services and improve on existing goods and services.
False
True
29
A new business undertaking that involves risk is called a?
Venture
Virtual business
Dot-com company
Small business
30
Which of the following is NOT part of the process of Entrepreneurship?
Use market research to determine if there is a market needed
Knowing the latest trends and fads
Recognize a business opportunity
Gather resources needed for the business
31
Which of the following is NOT a characteristic of a successful entrepreneur?
Are not satisfied with a single achievement
Rarely take initiative
Enjoy being their own boss
Set high standards for their own achievements.
32
To determine if there is a demand for your product you must first do?
a financial analysis
product testing
all of the above
market research
33
The main reason that people become entrepreneurs is to have the opportunity to be creative
True
False
34
How many rewards did we identify for entrepreneurship?
6
10
5
12
35
There are 10 essential parts to a business plan.
False
True
36
Every business operates within an industry.
True
False
37
Most U.S. businesses are?
sole proprietorships
virtual businesses
successful
corporations
38
A written description of a business venture that describes all aspects of the business is a?
executive summary
business plan
company policy
company charter
39
A business plan is used by?
all of the above
the entrepreneur
potential investors
top management
40
Which of the following is NOT a reward for entrepreneurship
Being the boss
Doing what you enjoy
Lack of creativity
Building an enterprise
41
A business owned and operated by one person is called a?
Corporation
Sole proprietorship
Partnership
Dot. com
42
Which part of the business plan identifies how the product will be produced?
Operational plan
Organizational plan
Financial plan
Industry overview
43
A brief account of the key points in the business plan is the?
vision statement
executive summary
mission statement
company description
44
Research regarding the business's customers is included in this part of the business plan?
operational plan
marketing plan
market analysis
competitive analysis
45
This group of business people DO NOT have to consult with others before making a decision.
Financial advisors
Entrepreneurs
Investors
Partners
46
Spin offs indicated that the venture has little growth potential.
False
True
47
A virtual business is a business that?
is almost a business
operates on the Internet
operates on street corners only
does not use money in any of its transactions
48
A business that is owned by 2 or more people is called a?
Dot.Com
Partnership
Sole proprietorship
Corporations
49
Which of the following is the top dot.com retail business today?
Amazon
Apple
Ebay
Etsy
50
This term describes a new business that involves taking a risk?
Venture
Dot Com business
Sole proprietorship
Partnership
51
Approximately 4 out of 5 businesses fail in their first ? years of business.
7
5
9
3
52
All of the following are recommended traits for a career in entrepreneurship EXCEPT being?
Enthusiastic
Cost-conscious
A risk taker
Goal Oriented
53
Virtual businesses are limited globally as well as by geography.
False
True
54
In a business plan, the description of the business's media plan is included in the?
product and service plan
competitive analysis
marketing plan
vision statement
55
Which of the following is NOT a reason why an entrepreneur puts in more hours than the workers?
They like to work long hours
They have a vested interest in the success of the business.
They need to finish any unfinished task
They are ultimately responsible for all business aspects
