Exam 2: Entrepreneurship

The _____ section of a business plan specifies the firm's cash needs and explains how the owners will be able to repay its debts.

Brothers Ronnie and Jacob are both in college; Ronnie is a senior and Jacob a sophomore. They’re both majoring in business administration and want to open a small business a few years after graduation. They understand that it’s important to gain more management experience and build good credit ratings. Ronnie wants more security in his work and would be satisfied working with an older partner until he “learns the ropes.” More than Jacob, he’d prefer a business that’s been established for a few years. Although he likes a certain degree of independence, he’s willing to follow directions and take advice. Jacob, on the other hand, wants more freedom to make his own choices and to succeed or fail on his own merits. He’s quite creative and likes to set his own rules. -Among the disadvantages of business ownership,Jacob would probably balk at the prospect of_____.

The "Management Plan" section of the business plan provides information about the qualifications of each member of the management team.

More than three-fourths of all U.S.adults are either self-employed or work for small businesses.

If you want to start a new business,which of the following enterprises would be the best choice?

Although the split between those working in small companies and those working in big companies is about even,large companies:

The majority of small businesses are owned by ____.

In order to meet the financial needs for future business growth as well as current demands, TruWood Cabinet Makers must secure a business loan of $125,000 from a local bank. The loan committee has asked owner and general manager Jarret Jones to write a comprehensive business plan that meets all of First Security Bank’s requirements for such a large loan. After a lot of research and careful writing, the plan is constructed and ready for presentation to the loan committee. -Jones knows that busy loan officers don't have the time to read his entire plan and prefer instead a synopsis or a condensed version that summarizes it.To address this fact,Jones:

Among small businesses,the service-producing sector is larger than the goods-producing sector.

In her business plan,Shelia Pataki has included a two-page overview called the _____.

Owners of small businesses are responsible for much of the _____ of U.S.business.

Which of the following is not an important reason for preparing a business plan?

If you purchase a business,it is lawful for the previous owner to set up a competing business that draws its former and your current customers away from you _____.

Unfortunately for small business,the service-producing sector has been steadily decreasing in revenues over the past 10 years.

To understand where _____ businesses are concentrated,you need to divide them into the goods-producing sector and the service-producing sector.

In order to meet the financial needs for future business growth as well as current demands, TruWood Cabinet Makers must secure a business loan of $125,000 from a local bank. The loan committee has asked owner and general manager Jarret Jones to write a comprehensive business plan that meets all of First Security Bank’s requirements for such a large loan. After a lot of research and careful writing, the plan is constructed and ready for presentation to the loan committee. -The dollars and cents of the business plan are especially important to loan committees.Jones is well aware that an entrepreneur must show how,when,and why the business will make a profit.He thus ensures that his _____ section details his startup costs and sources of funding,his projections of sales revenue,cost of goods sold,operating and financing expenses,profits,and his forecasts of cash flow.

The first step before actually starting a business is to get financing.

The key to developing a _____ is filling an unmet need.

A ____ is considered a blueprint for a company.

Donna Graves has just completed research to determine the types of advertising to use in her proposed business.She will discuss advertising under the _____ heading in the "Marketing" section of her business plan.