Term
| Most businesses are: a) corporations b) small businesses c) partnerships d) sole proprietorships |
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Definition
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Term
| True or false: Almost half of all sales in the U.S. come from small businesses. |
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Definition
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Term
| Most ____________ use small businesses as a launching pad. |
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Definition
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Term
| What is the definition of a small business? |
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Definition
| An independently owned and operated firm that is generally not dominant in its field. Owns fewer then 500 workers. |
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Term
| True or false: Not many small businesses are home based. |
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Definition
| False: Just over half of small businesses are home-based. |
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Term
| Which of these is NOT a benefit of owning a small business? A) Lower costs B) Greater Flexibility C) Less Work-Related Stress D) Freedom of cost of commuting |
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Definition
| C) Less Work-Related Stress |
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Term
| How do small businesses contribute to the economy? |
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Definition
| By: 1. Creating new jobs 2. Creating new industries (many of today's successful high tech firms began as small businesses, adapt to shifts in consumer interests and preferences, fuel local economies, act as outsource firms) 3. Innovation (better then large firms at developing new and improved ideas) |
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Term
| What is trade credit and when is it used by a small business? |
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Definition
| Trade credit is buying goods and agreeing to pay for them later, usually within 30-60 days. Small businesses use trade credit when needing a loan. |
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Term
| What causes small businesses to fail? |
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Definition
| 1. Government Regulations 2. Inadequate Financing 3. Inadequate Management |
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Term
| What is the benefit of a business plan? |
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Definition
| Provides an orderly statement of a company's goals, the methods by which it intends to achieve these goals, and the standards by which it will measure achievements. |
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Term
| What are the two keys to the success of a small business? |
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Definition
| 1. Develop a business plan 2. Use the resources provided by such agencies as the SBA, local business incubators, and other sources for advice, funding, and networking opportunities. |
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Term
| A business plan also includes the following components: |
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Definition
| 1) EXECUTIVE SUMMARY that briefly answers the who, what, when, etc. questions for the business. 2) INTRODUCTION that includes a general statement of the concept, purpose, and objectives of the proposed business. 3) Separate FINANCIAL and MARKETING sections that describes the firms target market and marketing plan as well as financial forecast. 4) RESUME of principals |
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Term
| What is the Small Business Administration? (SBA) |
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Definition
| The principle government agency concerned with helping and advocating for small firms within the U.S. |
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Term
| What are three types of financial assistance that the Small Business Association offers? |
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Definition
| 1) Guarantees small business loans from PRIVATE LENDERS. 2) Guarantees MICROLOANS to start-ups and other very small firms. 3) Matches entrepreneurs looking for start-up capital with potential investors willing to exchange their money and advice for partial ownership of the company (ACTIVE CAPITAL). |
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Term
| What is a set-aside program? |
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Definition
| Component of a government contract specifying that certain government contracts are restricted to small business and/or to women/minority-owned companies. |
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Term
| What is a business incubator? |
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Definition
| A local community agency interested in encouraging business development by providing low-cost shared business facilities to start-up ventures. |
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Term
| True of false: Women-owned and minority-owned business are growing much faster than the overall growth in U.S. businesses? |
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Definition
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Term
| Immigrants own nearly what percent of all small businesses? A) 45% B) 15% C) 35% D) 10% |
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Definition
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Term
| What are 3 obstacles that minority business owners face? |
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Definition
| 1) Have more difficulty finding investors than other entrepreneurs. 2) Start businesses on a smaller scale 3) Hard to get a loan. |
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Term
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Definition
| A contractual agreement that specifies the methods by which a dealer can produce and market a suppliers good or service. |
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Term
| A franchisor typically provides ______ to ________ the franchisee. |
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Definition
| Services to assist the franchisee (building plans, site selection help, managerial and accounting systems). |
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Term
| Advantages of franchises: (5) |
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Definition
| 1. Prior performance record 2. Recognizable company name 3. Business model that has proven successful 4. Tested management program 5. Business training for the franchisee. |
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Term
| Disadvantages of franchising: (2) |
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Definition
| 1. Fees and future payments can be very expensive. 2. Linked to the reputation and management of the franchise (so if it's had a bad rep. it won't be good for your business) |
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Term
| According to the U.S. Census Bureau: 73% of business ownership is _________, 21% are __________, and 6% are __________. |
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Definition
| 73% = Sole Proprietorships, 21% = Corporations, 6% = Partnerships |
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Term
| Sole proprietorships are: A) Easy to form and dissolve B) Offers limited management flexibility C) Incentive to maximize efficiency of operations D) Both A & B E) Both A & C |
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Definition
| E) Both A & C :::: Why is their more incentive to maximize efficiency of operations? ::::: B/c retention of all profits and responsibility for all losses are placed upon owner. |
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Term
| In a sole proprietorship it is the ________ financial liability for all debts of the business. |
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Definition
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Term
| A sole proprietorship lacks long-term continuity because of: (4) |
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Definition
| 1. Death 2. Bankruptcy 3. Retirement 4. A change in personal interests can terminate it. |
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Term
| Advantages of a partnership are: |
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Definition
| 1. Easy to form, 2. Can benefit from complementary management skills, 3. Expanded financial capacity |
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Term
| Disadvantages of a partnership are: |
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Definition
| 1. Unlimited financial liability, 2. Interpersonal conflicts, 3. Lack of continuity, 4. Difficult to dissolve |
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Term
| Advantages of a Corporation are: |
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Definition
| 1. Limited financial liability, 2. Specialized management skills, 3. Expanded financial capacity, 4. Economies of large-scale operations. |
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Term
| Disadvantages of a Corporation are: |
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Definition
| 1. Difficult and costly to form and dissolve, 2. Tax disadvantages, 3. Legal restrictions |
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Term
| What is an S CORPORATION? |
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Definition
| Firms that elect to pay federal income taxes as partnerships while retaining the liability limitations typical of corporations. |
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Term
| What is a limited liability company? |
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Definition
| Governed by an operating agreement that resembles a partnership agreement, except that it reduces each partner's liability for the actions of the other owners. |
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Term
| Define domestic, foreign and alien corporations. |
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Definition
| Domestic corporation: A firm operating in the state where it is incorporated. Foreign corporation: A company doing business in states other than the one where it is incorporated. Alien corporation: A firm operating in an entirely different nation then where it is incorporated. |
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Term
| What is a corporate charter? |
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Definition
| A legal document that formally establishes a corporation. |
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Term
| Owners of PREFERRED STOCK (do/do not) have voting rights, are entitled to receive dividends (before/after) common-stock holders. |
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Definition
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Term
| Owners of COMMON STOCK (do/do not) have voting rights and receive (priority/the left overs) of a firm's assets. |
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Definition
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Term
| The Sarbanes-Oxley Act of 2002 tightened requirements of corporate boards and required what of CEOs and CFOs of major corporations? |
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Definition
| Required that CEOs and CFOs of major corporations certified in writing the accuracy of the firm's financial statements. |
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Term
| What is a merger? What is an acquisition? |
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Definition
| Merger: two or more firms combine to form one company. Acquisition: one firm buys the property and assumes the obligations of another. |
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Term
| A merger combining firms operating at different levels in the production and marketing process is a: A) VERTICAL B) HORIZONTAL C) CONGLOMERATE |
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Definition
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Term
| A merger joining firms in the same industry that wish to diversity, increase their customer bases, cut costs, or offer expanded product lines is a: A) VERTICAL, B) HORIZONTAL, C) CONGLOMERATE |
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Definition
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Term
| A merger combining unrelated firms is a: A) VERTICAL, B) HORIZONTAL, C) CONGLOMERATE |
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Definition
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Term
| A partnership between companies formed for a specific undertaking is a: |
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Definition
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Term
| Public ownership is when _________ owns and operates an organization. |
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Definition
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Term
| An entrepreneur who identifies business opportunities and allocates available resources to tap markets is a: A) CLASSIC ENTREPRENEUR B) SERIAL ENTREPRENEUR C) INTRAPRENEUR D) CHANGE AGENT |
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Definition
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Term
| An entrepreneur that starts one business, runs it, then starts and runs additional businesses in succession is a: A) CLASSIC ENTREPRENEUR, B) SERIAL ENTREPRENEUR C) INTRAPRENEUR D) CHANGE AGENT |
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Definition
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Term
| Entrepreneurs that develop new products, ideas, and commercial ventures within large organizations are: A) CLASSIC ENTREPRENEURS, B) SERIAL ENTREPRENEURS, C) INTRAPRENEURS D) CHANGE AGENTS |
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Definition
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Term
| An entrepreneur who is the manages and revitalizes an established firm to keep them competitive is a: A) CLASSIC ENTREPRENEUR, B) SERIAL ENTREPRENEUR C) INTRAPRENEUR D) CHANGE AGENT |
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Definition
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Term
| What are the four reasons people desire to become entrepreneurs? |
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Definition
| 1. Desire to be own boss 2. Desire to succeed financially 3. Desire for job security 4. Desire for an improved quality of life |
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Term
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Definition
| Borrowed funds that entrepreneurs must repay. |
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Term
| What is equity financing? |
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Definition
| Funds invested in new ventures in exchange for part ownership. |
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Term
| Is a business firm or group of individuals that invest in new and growing firms in exchange for ownership share a VENTURE CAPITALIST or ANGEL INVESTOR? |
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Definition
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Term
| Are wealthy individuals who invest directly in a new venture in exchange for an equity stake VENTURE CAPITALISTS or ANGEL INVESTORS? |
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Definition
| ANGEL INVESTORS (tricky right) |
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Term
| What is "Business-to-business (B2B) e-business"? |
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Definition
| Electronic business transactions between organizations using the Internet. |
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Term
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Definition
| A secure network used for e-business and accessible through the firm's web site by external customers, suppliers, or other authorized users. |
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Term
| What is business-to-consumer (B2C) e-business? |
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Definition
| Selling directly to consumers over the Internet. |
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Term
| What is the process of encoding data for security purposes called? |
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Definition
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Term
| To increase consumer security most companies involved in e-business use Secure Sockets Layer (SSL) technology to: |
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Definition
| Verify the identity of senders and receivers. It is also called authentication. |
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Term
| An electronic barrier between a company's internal network and the Internet that limits access into and out of the network is called a: |
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Definition
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Term
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Definition
| A wiki is a website that anyone can edit. |
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Term
| What is the difference between a banner ad and a pop-up ad? |
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Definition
| A pop-up ad is an ad displayed in a separate window and a banner ad is actually on the webpage. |
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Term
| Paying search engines, such as Google, a fee to make sure that the company's listing appears toward the top of the search results is called: |
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Definition
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Term
| The percentage of visitors to a web site who make a purchase is called the: |
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Definition
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