Exam 2: Entrepreneurship

A small business that buys goods from other firms and sells them to consumers is known as a _____.

Which of the following topics is/are included in the "Marketing" section of the business plan?

Because an owner can delegate both authority and responsibility,entrepreneurs often have more free time than people who work for someone else.

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.

Marcia Kilgore's first business was called "Bliss Spa." After selling this business for $30 million,she launched two more companies,Soap and Glory and FitFlops.Her newest company is Beauty Pie.Marcia Kilgore is:

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.

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.

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. -Because Gonzalez's company is independently operated,the Small Business Administration would consider it a large business.

The startup phase of a business usually lasts for more than _____.

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.

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?

As someone who has identified a business opportunity and assumed the risk of creating and running a business to take advantage of it,Rick Jurmain is an entrepreneur.

The service-producing sector includes manufacturing,construction,and agriculture.

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

The most important step in the process of starting a business is creating a business plan-a document that identifies a company's goals and explains how they'll be achieved.

At the end of the day,entrepreneurs' successes will depend on their ability to manage and grow the organizations that they created to implement their visions.

The _____ section of the business plan explains why your proposed offerings are better than those of competitors and indicates what market needs will be met by your 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 _____.

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