Management Chapter 6 6 When Crystal Graduates From Culinary School

237. When Crystal graduates from culinary school she dreams of opening her own Asian fusion

restaurant. Her other passion is skiing in Colorado, where she schedules four or five trips each

year. As her small business advisor, you believe it necessary to provide her with information that

will help her make good business decisions. Which of the following would be helpful for Crystal to

know?

238. A small business management course at a community college may offer entrepreneurs an

opportunity to:

239. One way to get into business is to buy an existing company. The value of the business

used to determine a fair purchase price is based on:

240. Conversations with people who start their own business often reveal that:

241. For prospective entrepreneurs, enrolling in an introduction to business or small business

management course offered through their community college:

242. Which of the following suggestions would an experienced business owner offer to help

someone who is thinking about starting a business venture?

243. Successful small business owners are:

it.

244. When starting a small business, it’s important to remember:

245. The

Making Ethical Decisions

box “Should You Stay or Should You Go?” addresses a

dilemma worthy of consideration. It describes:

246. Motivated by his desire to operate his own business, Nick considers purchasing an

existing business. As he carefully weighs this option, he is likely to find that:

247. Carrie, a student at Metropolitan Community College, dreams of starting her own

business. In an effort to learn as much as she can about small business management, she talked

to four friends who each offered their advice. Which of these suggestions is likely to help Carrie

the most?

248. Greg benefited from his experience working for an established private company that

provided innovative lighting for large music venues. Although confident that he could start his

own lighting business, he had limited capital to buy the necessary equipment needed to

successfully compete with established companies. Which of the following strategies would best

help Greg achieve his goal of business ownership?

249. As a young boy, Drew remembers his grandfather telling him, “Son, if you can find

something you like to do, and somebody is willing to pay you to do it, well, that’s the secret to a

great life.” The way Drew saw it, this was his big break. For the past five years, he split his time

between school and working for a local tree farm/nursery business. The owner recently

announced he was ready to retire. As Drew began creating a business plan, he contemplated

what the business might be worth. How much will he need to buy this business? For starters,

Drew:

250. Two key management functions that need particular attention when starting a business

are:

251. A __________ is a written document that details the business idea, the target market and

the business’s competitive advantage, financial resources available for the business, and the

qualification of the management.

252. The business plan will include ____________.

253. A detailed written statement that describes the nature of the business, the target market,

the firm’s competitive advantages, as well as the owner’s resources and qualifications is a:

254. Entrepreneurs seeking financial support from bankers and potential investors should:

255. Bankers and potential investors are likely to read ___________ first.

256. After personal savings, the next largest source of capital for entrepreneurs is from:

257. ________ are private individuals who invest their own money in potentially hot new

companies before these firms become larger, publicly traded companies.

258. Due to the credit crunch during the recent recession, many small businesses found that

_____________ were more willing to lend money to smaller operations.

259. A firm or individual providing financial capital to small businesses in exchange for an

ownership stake in the company is called a:

260. Which of the following government agencies is responsible for encouraging the

development of small business?

261. Which of the following sources of investment is the least likely type available to

entrepreneurs?

262. The Small Business Administration’s microloan program awards loans to entrepreneurs

based primarily on their:

263. A Small Business Investment Company (SBIC) is a(n):

264. One of the best places for young entrepreneurs to start shopping for an SBA loan is a(n):

265. A ________ refers to people with unsatisfied wants and needs who are willing and able to

buy a product or service.

266. To be considered part of a market, an individual must:

267. Small business owners often struggle in attracting qualified workers. Which of the

following contributes to this problem?

268. Employees of small businesses often have greater job satisfaction than do employees of

larger firms. One reason for this difference in job satisfaction is that employees of small

businesses often:

269. A new business that sets up a(n) _____________ from the start is saving itself time and

grief later.

270. Small businesses must seek advice from outside experts. In order to put together official

documents such as leases, contracts, and partnership agreements, it is important to seek the

advice of ________.

271. A(n) ____________ is a valuable source of information regarding techniques to reduce a

firm’s exposure to risk.

272. Similar to how large businesses proceed, small businesses make marketing decisions

____________.

273. The Small Business Administration sponsors volunteers from industry, trade associations,

and education who offer advice to small business owners. These volunteers are called:

274. Entrepreneurs applying for a bank loan should realize that bankers will: