Chapter 5: Small Business, Entrepreneurship, and Franchising

Steven wants to start his own tour company. What will be the most important source of funds for this new business?

Millennials are not activity sought after by small businesses.

A business plan should establish a strategy for acquiring sufficient funds to keep a business going.

To make profits from a small business, the owner must first provide ____ to start the business/keep it running smoothly.

What is the purpose of the Small Business Administration?

What affect has the economic turbulence of recent years had on small businesses?

Nathan sells land he inherited from his grandparents and starts a business with the proceeds. This is known as ____

Securing a mortgage from a bank for a new business venture is an example of

If a small business fails to repay a bank loan, what will the lending institution do to recover its loss?

Bartering is where small businesses trade their own products for the goods or services offered by other businesses.

A struggling company decided to eliminate layers of management, personnel, and work tasks to remain competitive. This is

Which one is an advantage of buying and running an existing business?

A franchise outlet often reaches the break-even point faster than an independent business would.

Brenda is starting her own small home decorating company. What is something the business plan should accomplish?

A business plan is created once and should not be changed.

Approximately 52 percent of all small businesses are based out of the home.

If a small business has to cope with growth, it requires the owner to

Persons/organizations that agree to provide funds for a new business in exchange for ownership interest/stock are called

Many service providers are considered retailers because they

A precise statement of the rationale for a business and a step-by-step explanation of how it will achieve its goals is a

Clarissa makes one-of-a-kind ceramic vases. and sells these pieces on Etsy rather than a store. This is an example of

Independent investors who help a company raise capital through internal financing are intrapreneurs.

Which group represents over 17 percent of those living in the U.S. and is largely employed in the retail industry?

A business that lacks funds to operate normally faces a problem known as

As an advantage of being a small business owner, independence means

What is an implication of technological advances to small businesses?

Manufacturing is attractive to entrepreneurs because of the low start-up costs to establish a manufacturing business.

Small businesses, by their very nature, are small and therefore do not contribute significantly to job creation.

Manuel wants to start his own small business. All of the following are things he must to do to start a business EXCEPT

A license to sell another's products or to use another's name in business, or both, is called a(n)

In the manufacturing sector, small businesses sometimes have an advantage over large firms because they

A ________ is an agreement by which a financial institution promises to lend a business a predetermined sum on demand.

Brett works for a sporting goods corp and develops a football helmet with advanced concussion protection. Brett is an

A person who creates and manages a business to achieve his or her desired objectives is engaged in

If Yvette wants to start her own business, what might persuade her to open a retail operation?

Which entity is the main supplier of external financing to small businesses?

Entrepreneurship is the process of creating and managing a business to achieve desired objectives.

A business plan is created to limit a business's flexibility and decision-making ability.

Rosemary was born in 1952 and spends more of her money on travel, financial planning, and health care. Rosemary is a(n)

Individuals who take responsibility for the development of innovations within the organizations are intrapreneurs.

Entrepreneurs who are involved in international business are referred to as intrapreneurs.