Exam 5: The Challenges of Starting a Business

A rewarding aspect of being a business owner is that you can't get fired-an advantage that comes under the heading of "Creative Freedom and Personal Satisfaction."

The critical financial concept of cash flow tracks money coming in as well as money going out of a business.

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:

Under the Small Business Administration's _____ program, a businessperson needing advice is matched with a team of retired executives who work on a volunteer basis.

The largest areas of the goods-producing sector are construction and manufacturing.

If you run a _____, you may find that you must adhere to certain rules even if you disagree with some of them.

_____ companies provide valuable services to _____ companies by acting as sales agents for their products.

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, both brothers would probably balk at the prospect of _____.

Many small firms provide _____ services to large firms-that is, they hire themselves out to help with special projects or to handle certain business functions.

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

A survey conducted by the Wall Street Journal indicates that, by and large, small business owners have had more satisfying business experiences than they would have had as top-level executives.

The "Mission Statement" section of the business plan contains the fundamental beliefs about what is and what isn't appropriate and important in conducting company activities.

Which of the following is not a criteria used by the SBA in defining a small business

One advantage of working for someone else is the likelihood of making more money than if you were running your own business.

Managing the money that comes in and goes out of a business means managing _____.

How does franchising work and in what industries do we find franchises?

The purpose of starting a business is to satisfy customers.

The "Target Market" section of the business plan profiles future customers.

The majority of small businesses are owned by ____.

Which of the following is an advantage of buying an existing business