logo image

Ch. 6

A firm or individual providing financial capital to small businesses in exchange for an ownership stake in the company is called a(n):
Select one:
a. corporate raider
b. takeover specialist
c. financial analyst
d. venture capitalist
d. venture capitalist
Bankers and potential investors are likely to read ___________ first.
Select one:
a. the executive summary
b. the marketing plan
c. the qualifications of the management team
d. the analysis of the competition
a. the executive summary
Which of the following will not help your small business succeed?
Select one:
a. Services you perform are easily replicated by larger companies, such as online banking
b. You provide a unique service that requires a significant amount of personal attention such as a service that provides in-home care for seniors
c. Investing in a franchise
d. Your product is not easily mass produced, like professional photography
a. Services you perform are easily replicated by larger companies, such as online banking
Intrapreneurs make use of __________ to develop and launch new products and generate new profits.
Select one:
a. their employer’s existing human, financial, and physical resources
b. their own personal financial resources
c. government-supplied physical and financial resources
d. old ideas abandoned by entrepreneurs
a. their employer’s existing human, financial, and physical resources
Small businesses are important to the U.S. economy because:
Select one:
a. they fill-in the gaps when large businesses want to let workers go on vacation; or when large businesses want to temporarily cease production
b. banks and other financial services companies would not have borrowing customers, because small businesses borrow more than large businesses
c. they pay most of the tax revenue collected by the U.S. government
d. they create over 60% of new jobs each year and generate over 50% of the U.S. GDP
d. they create over 60% of new jobs each year and generate over 50% of the U.S. GDP
Which of the following statements is characteristic of entrepreneurs?
Select one:
a. They like certainty
b. They have the ability to visualize a clear path
c. They look at problems and see opportunities
d. They prefer to be inventive rather than worry about whether the invention solves a customer need
c. They look at problems and see opportunities
Historically entrepreneurs in the U.S.
Select one:
a. created wealth for themselves, but have had a minor impact on the economy as a whole.
b. started many small firms that later became major corporations employing thousands of workers.
c. experienced success only when they worked in partnership with the federal government.
d. played an important role, but are less important now in creating jobs and wealth.
b. started many small firms that later became major corporations employing thousands of workers.
A market consists of potential buyers of a good or service. However, for a market to exist:
Select one:
a. the business requires wholesalers and retailers.
b. one firm must dominate in sales and product development.
c. people must have unsatisfied wants and needs as well as a willingness and ability to buy.
d. the product must be laboratory tested and approved by the Food and Drug Administration (FDA).
c. people must have unsatisfied wants and needs as well as a willingness and ability to buy.
When seeking financial backing from a venture capitalist, a small business owner should realize that the venture capitalist will:
Select one:
a. charge an interest rate that is much higher than any other lender
b. not be interested in the management of the business.
c. expect an ownership stake in the company in exchange for financial backing.
d. demand that the money be repaid within 90 days or less.
c. expect an ownership stake in the company in exchange for financial backing.
A__________ is a written document that details the business idea, the target market and the business’s competitive advantage, financial resources available for the business, and the qualification of the management.
Select one:
a. mission plan
b. marketing plan
c. business plan
d. statement of intent
c. business plan
A review of small business successes and failures indicates that the:

Select one:
a. businesses that are easiest to start offer the greatest potential for long term growth and profits.
b. restaurant industry offers the least risk for entrepreneurs.
c. businesses with potential of high profit levels tend to be difficult to start and hard to keep going.
d. reason the service sector is rapidly growing is that these firms are easy to start and keep going, and offer high levels of security and growth potential.

c. businesses with potential of high profit levels tend to be difficult to start and hard to keep going.
________are private individuals who invest their own money in potentially hot new companies before these firms become larger, publicly traded companies
Select one:
a. Leveraged buyout specialists
b. Angel investors
c. venture capitalists
d. corporate raiders
b. Angel investors
Which of the following best describes the difference between an intrapreneur and an entrepreneur?

Select one:
a. Intrapreneurs start nonprofit organizations while entrepreneurs start profit-seeking businesses
b. Intraprenuers are practical while entrepreneurs are creative
c. Intrapreneurs work within existing corporations while entrepreneurs assume the risks of starting their own business
d. Intrapreneurs limit their efforts to financial investments, while entrepreneurs are involved in the management of all areas of a business

c. Intrapreneurs work within existing corporations while entrepreneurs assume the risks of starting their own business
Two key management functions that need particular attention when starting a business are:

Select one:
a. human relations and accounting
b. planning and financing
c. marketing and public relations
d. staffing and controlling

b. planning and financing
The Small Business Administration defines a small business as a firm that:

Select one:
a. has fewer than 100 partners.
b. is independently owned but not dominant in its industry.
c. is dominant in its industry, but small in the number of workers it employs.
d. has annual receipts of more than a specified amount depending upon the industry.

b. is independently owned but not dominant in its industry.
A good business plan will:
Select one:
a. focus on the big picture and omit the small details of operating the business.
b. describe all aspects of the business, including product, the target market, the nature of the competition, any financial resources, and the owner’s qualifications.
c. be purposefully vague, since specifics can restrict creativity and flexibility.
d. focus on the nature of the business and the target market, omitting personal information about the owner in order to avoid personality issues
b. describe all aspects of the business, including product, the target market, the nature of the competition, any financial resources, and the owner’s qualifications.
Small businesses:
Select one:
a. deal with similar management issues that large companies face.
b. deal with very different management issues due to the very different management challenges experienced by small businesses.
c. do not seek government funding due to the fact that the federal government has made it very clear that it must support large operations before small operations.
d. concern themselves with state-of-the-art information and accounting technology but not employee relations due to their challenge to financially support employee benefits programs.
b. deal with very different management issues due to the very different management challenges experienced by small businesses.
One reason we have seen continued growth in home-based businesses is:

Select one:
a. the location offers a more secure operational environment.
b. affordable computer and information technology makes it easier to compete.
c. people need something to do while they wait to return to work for a large corporation.
d. it is less risky to start a home-based business than other types of entrepreneurial ventures.

b. affordable computer and information technology makes it easier to compete.

Need essay sample on "Ch. 6"? We will write a custom essay sample specifically for you for only $ 13.90/page

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
×
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
|
Complete Buyer Protection
|
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy