Exam 5: The Challenges of Starting a Business

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

The monthly fee that a franchisee must pay to keep the company's trade name is called a(n) _____.

Which of the following is the most common but riskiest option in becoming a small business owner

To succeed in a business, a new owner must understand _____.

According to the Small Business Administration, one of the most common reasons for starting a business is to _____.

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 business is not a small business because it's unique in the flower-shop industry.

In which industries would you find a heavy concentration of small businesses

Explain the benefits of obtaining a franchise.

The _____ section of the business plan describes the fundamental beliefs about what is and isn't appropriate in conducting company activities.

Because Green Thumb Landscapers buys goods from other firms and sells them to consumers, the company is a retailer.

About 80 percent of small businesses in the U.S. are concentrated in the _____ sector.

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. -By following your advice, Ronnie would probably enjoy all of the advantages of small business ownership except _____.

James Brolen is a man of many talents and abilities. After six months in business, however, things aren't going well, and Brolen doesn't quite understand why. Among other things, he sometimes worries more about problems at home than about customer needs, spends a little too much time poring over e-mails, and tries to balance work and life by keeping up with a couple of hobbies. What's Brolen's biggest problem

They key to coming up with a great business idea is to:

A business plan explains the goods and services that you intend to sell and specifies the qualifications of your management team.

The Small Business Administration offers an array of programs to help small business owners and prospective business owners. Services include all of the following except assistance in_____.

In what industries are small businesses concentrated?

The _____ section of your business plan tells the reader where you will purchase products for resale.

Explain why some individuals become entrepreneurs.

When buying a franchise, the business owner must pay a monthly royalty fee but typically reserves the right to buy core products from other suppliers.