Exam 5: The Challenges of Starting a Business

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

The success of small businesses in fostering creativity has caused many large companies to respond by downsizing in order to act more like small companies.

Franchises are often quite _____.

A franchise business is appealing because franchisers _____.

Franchises generally don't include such complex products as hotels.

Under the Small Business Administration's SCORE program, retired executives help business people who need advice.

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

The success of small businesses in fostering creativity has gone unnoticed by big businesses.

Peter Jackson has included the résumés of his management team and a set of financial statements in his business plan. In what section of the plan will a bank officer find this information

The most common use of a business plan is to persuade potential customers to buy your goods or services.

"To preserve and improve human life" best illustrates a _____.

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

In what ways do small businesses help the U.S. economy?

Innovators at large businesses are the primary driving force behind the discovery of new ways of doing old things.

Which of the following is among the rewards of being a small business owner

Starbucks' Howard Schultz is an example of a person who came up with a business idea as a result of a hobby.

Small businesses in the U.S. generate about 50% of our gross domestic product (GDP).

More than three-fourths of all U.S. adults are either self-employed or work for businesses with fewer than 500 employees.

While many _____ ventures are based on innovative ideas, others revolve around improvements to existing goods or services.

Mary Gonzalez recently expanded her chain of flower shops. As the only small flower shop located in major airports in the Midwest, she has a unique operation. She has 72 employees in 30 shops, and although her company isn’t dominant in its industry, her shops are busy year round. To accommodate her unique clientele, Mary developed the idea of packaging flowers in small waterproof pots that won’t leak either in the airport or aboard planes. -Gonzalez's shop managers regularly think of new ways to market their products, improve their quality, keep them fresher, and meet consumer needs. In this respect, Gonzalez's business is unusual among small businesses.