Exam 5: The Challenges of Starting a Business

The "Executive Summary" section of a business plan answers the question "What is the outlook for the industry"

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

The Small Business Administration defines a small business as one with 500 or fewer _____.

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. -As Jacob's business advisor, what would you probably advise him to do

If he bought a local combination miniature golf course and driving range, Bernard Blanco would find that buying an existing business is an easier option than starting from scratch.

Franchises are considered an easy, cost-efficient way to start your own business.

Which of the following is not a reason that many business fail

Which of the following is among the disadvantages of small business ownership

Which of the following are provided to business people by the SBA

The executive summary section of a business plan:

In order to limit your financial risk, it's usually advisable to pour limited financial resources into a new business.

What elements does a business plan encompass?

The "Development and Production" section of the business plan explains why your proposed offerings will be better than those of competitors.

Even though the _____ is often the first thing that readers consider, it's usually written _____ the other sections of the plan are completed.

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

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. -As a practical businessman, Jones knows that his business plan must demonstrate his knowledge of his customers (including the demographics of various customer segments), product promotion, pricing, and the essentials of distribution. Thus his inclusion of a strong _____ plan.

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 includes a(n) _____ section in his business plan to cover items of interest that aren't otherwise covered in it-his résumé, copies of sales contracts, a copy of his lease, and so on.

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. -Small businesses like Gonzalez's account for about 50 percent of the U.S. gross domestic product each year.

As a business owner, you're in charge and can decide when and where you want to work. This managerial freedom best reflects the _____ advantage of small business ownership.

Manufacturing is primarily the domain of _____ businesses.