Intro to Business - Chapter 5

A carefully constructed guide for the person starting a business is a(n)

• marketing plan
• organizational plan
• articles of. business
• business plan

The people in small business belong to a group called

• advisors
• entrepreneurs
• managers
• cultivators

The various types of businesses attracting small business are generally grouped into service industries, distribution industries, and financial industries.

• True
• False

All of the following are advantages that small businesses have except

• greater potential for making profit
• simplified record keeping
• independence
• the ability to adapt to change
• personal relationships with customers

The reasons that some entrepreneurs and small businesses fail include: (check all that apply)

• lack of financial capital
• people are opening new businesses every day, in every part of the country
• strong management skills
• over-expansion & fast growth
• money, personnel, and inventory mismanagement

All of the following are reasons people go into business except the...

• desire for independence
• willingness to accept a challenge
• desire to determine one's own destiny
• guaranteed return on investment

One of the key things that the SBA (Small Business Administration) is charged with is providing help to minority-owned small businesses.

• True
• False

A franchisor supplies all of the following except

• name of the shop
• advertising materials
• land to place the business on
• any necessary employee training
• methods of doing business

The main disadvantage of franchising affects the franchisee, because the franchisor retains a great deal of control.

• True
• False

"This business will create a caring, learning environment for elementary school children after regular school hours to meet the needs of working parents." This statement answers which of the following issues that should be addressed in a business plan?

• How much will the new business cost?
• Why is this new business a good idea?
• What are Deborah's goals for the business?
• What is the nature and mission of the business?