Exam 5: Small Business and the Entrepreneur

You have a friend who has asked for your advice about how to start a small bookkeeping business for the first time.What professional resources would you recommend to help your friend,and why?

________ are private venture capital firms licensed by the Small Business Administration to make equity capital or long-term loans available to small companies.

An advantage of buying a franchise is that no initial training is necessary.

Rhonda does not know how to go about finding financing for her struggling new business.Which of the following resources would be the BEST place for her to learn more about obtaining financing?

All of the following are reasons why people start small businesses EXCEPT ________.

The sole purpose of the Small Business Administration is to cater to the needs of small businesses.

________ is the process of performing research and analysis of a business to uncover any hidden problems associated with it.

Rashan has been working as a pharmacist at a large drug store chain.He would like to open his own small pharmacy but is not sure if he could be successful given the predominance of large competitors.What part of his business plan would best address his concern?

Small business owners can seek professional advice at no cost through ________.

One of the safest ways to finance your business is to borrow against a personal asset,such as your retirement account.

One of the biggest reasons that small businesses fail is that the owner spent excessive time engaged in formal planning.

Fred started his new landscaping business with a commercial loan.He uses his credit card to pay for weekly supplies such as fertilizer and mulch.Business growth has been slow and Fred is having a difficult time keeping up with his monthly loan and credit card payments.He is now considering borrowing against his home to stay current with his initial loan and for other needed expenses.Fred's business is MOST at risk because ________.

Which of the following types of entrepreneurs does NOT become involved in starting his or her own business?

The Service Corps of Retired Executives is composed of ________ who can provide advice to small business owners.

The decision to buy an existing business should be carefully thought out.What are the most important pros and cons that should be weighed?

James lives near a university and observes that almost every student uses a cell phone.He decides to open a small shop offering repair services for cell phones.His shop is an instant success.James has satisfied an area of need called ________.

Alex Garcia has an idea for an Internet technology business that involves innovative search engine tools.He was referred to an organization that helps start-up businesses by offering resources such as administrative services,technical support,and business networking.This type of organization is called ________.

Small businesses are becoming increasingly important to the economy.Describe several specific ways that small business is contributing to the American economy.

An advisory board is composed of ________.

There are a number of different categories of entrepreneurs operating today.Identify and describe the different types of entrepreneurs.