Key Terms on the Test
Person who assumes the risks of a business enterprise
Risk Taker Entrepreneur or Business Owner
The most important step in starting a business is...
Preparation and Research
Small businesses employ more than ___ percent of all private sector employees (see p. 130).
60%
Business with more than 500 employees were responsible for what percentage of employment growth between 1990 and 2005? (see p. 127)
36.3% (the remaining 63.7% was from small businesses!)
The internet is a good place to sell products and services
True
The agency that defines the size of "Small Businesses"
Small Business Administration (SBA)
The most popular use of business plans is to...
Persuade investors
How does the Small Business Administration define a small business relating to its size?
Half.
Everyone who owns/manages a business is an entrepreneur.
False. Entrepreneurs are different in that they START the business also.
A business that operates on the internet
Dot Com or Virtual Business
What is a written description of a new business venture that describes all aspects of the business?
Business Plan
Women own more than ____ of all small businesses (see p. 131).
One fourth
Money provided by large investors to finance new products and new businesses that have a good chance to be very profitable is known as...
Venture Capital
You should be able to prepare a full business plan in less than an hour.
False. It should take several hours or even days!
Money left over after a business has paid all cost of doing business
Profit
Name the five elements of a business plan
Description, Customer Analysis, Operations Plan, Marketing Plan, Financial Plans
Name 3 of the 7 major reasons a small business might fail.
Not keeping adequate records, not having enough start-up money, lack of management experience, lack of experience with business type, not controlling operating expenses, poor location, failure to manage credit offered to customers.
True or False: about 25% of US job growth comes from businesses with less than 20 employees.
True
All dot-coms only operate on the web and don't have a brick and mortar location.
False. Many have both.
Entrepreneur
What are the three types of financing?
Start-up financing, short-term financing, long-term financing
True or False: Small businesses have an easier time meeting the precise needs of customers than do large businesses.
True.
Explain the difference between Innovation and Improvement.
Innovation is creating something brand new, Improvement is a designed change that increases usefulness of some product or service that already exists.
In the USA, as many small businesses fail each year as begin.
True.