Exam 6: Planning, Organizing, and Managing a Small Business

Because planning for the future is so risky, not making a plan is the safest alternative.

Objectives are the goals that give shorter-term direction to the business and serve as benchmarks for measuring performance.

Matt plans to open a corner store. The startup cost is approximately $10,000. Since Matt has only $2,500 with him, he decides to invite two of his friends-Brett and Brian-to join him in this venture. Who should write the business plan in this scenario?

In a SWOT analysis, strengths and weaknesses are part of a company's external environment.

In which part of the business plan should the expected revenues be included?

Organizing should be the first management function performed as it sets the future course of action for all aspects of the business.

Through equity financing, a company can be partly owned by the:

Selecting the type of business to enter is an example of operational planning.

_____ provide employees with standing instructions for performing their jobs, comprise detailed explanations of how to do the work properly, and in what order it should be done.

A software engineer is part of the company's _____ resources.

The process of planning is time-consuming.

Why are setting objectives important to a small business? Give an example.

_____ is the amount of money available at a given time to pay expenses.

Income from sales is also called revenue.

What is a SWOT analysis and how is it used?

_____should be the first management function performed.

What are the three types of planning that can improve a small business owner's chances for success?

The lesser time a small business owner devotes to the business, the more important it is to have capable employees.

A business's _____ defines the present business scope and broadly describes an organization's present capabilities, focus, and activities.

What are the two important considerations involved in creating the mission and defining objectives for a small business? Explain how each gives a competitive edge to a small business.