Business Principles C6 Info

Two keys factors in starting your own business are having a real desire to be your own boss and developing a good initial plan. If someone does this, they would be considered an ______________.
entrepreneur
Do entrepreneurs need to be a certain age?
no
Many entrepreneurs own their first business while in their ________.
teens
More business owners are ________, but young entrepreneurs are more equally divided between male and female.
male
Do entrepreneurs need to have a degree?
no
One in ______ of all Americans 18-64 years old is involved in some type of entrepreneurship activity.
ten
More than ________ new businesses are created annually.
625,000
Nearly as many small businesses close as begin each year. True or false.
true
Small businesses are responsible for most new _____________.
employment
Over _____ percent of new jobs were created by businesses with fewer than 500 employees.
60
Most new businesses start on $10,000 or _____.
less
A nationwide study found that _____ percent of startup capital comes from owner savings, bank loans, and credit card debt.
75
One in _____ Americans has invested in a business of someone they know well.
ten
In the 1990s, many ________ ________ companies were formed. They supplied more than $100 billion each year to new businesses.
venture capital
More than ________ companies receive venture capital each year.
2,400
Businesses with just a _______ owner and no staff account for more than $770 billion in sales annually.
single
Small businesses are responsible for more than _____ of the U.S. gross domestic product each year.
half
The American private enterprise economy promotes innovation and new business ____________.
development
The opportunities for prospective entrepreneurs begin with the creation of new or improved products and _________.
services
___________ often develop innovations.
inventors
In addition to inventions, innovators create new services that become the basis for a business. True or False.
true
Mary Kay Cosmetics has helped more than 1.8 _______ business women worldwide.
million
The H & R Block Company trained people to provide efficient, low-cost tax preparation services to individual buyers. True or false.
False (taxpayers)
Many more new business ______ than succeed.
fail
Who reports that all of new businesses, about one-third are profitable, one-third do not make a profit but continue to operate, and the remaining third lose money.
National Federation of Independent Business
Over a 10-year period, more than ____ percent of all new businesses are discontinued.
50
What are the six primary reasons that businesses started by entrepreneurs close are:
1. lack of adequate capital
2. low sales
3. higher than expected expenses
4. competitive pressure
5. an owner unprepared to manage a growing business
6. operations requiring more time than the owner is willing to commit
Business is often viewed as very ______ corporations.
large
By far the greatest percentage of businesses in the United States is ______ businesses.
small
Small businesses employ more than ____ percent of all private sector employees.
60
What percent of the roughly 26 million U.S. businesses are small businesses?
99.9
Four points that define a small business are:
1. the owner is usually the manager
2. it operates in one or very few locations
3. typically serves a small market
4. it is not dominant in its field
Nearly 19.5 million businesses have no staff other than the owner. True or false.
True
22 million businesses are set up as __________.
proprietorships
On average, small businesses are responsible for creating 60-____ percent of all new jobs.
80
Women own more than one-______ of all small businesses.
fourth
More than ____ percent of small businesses have African-American, Asian-American, or Hispanic-American ownership.
17
The majority of small business owners are over ____ years old, but nearly 14 percent are under 35.
35
Nearly 80 percent of all people starting small businesses have finished some college work. True or false.
False (64 percent)
On average, small business owners report that they needed $_______ or less to start that type of business.
5,000
Full-time businesses with buildings, equipment, and employees may require more than $_________ of initial capital.
100,000
Is it easier or harder for small businesses to meet the precise needs of customers than large businesses?
easier
Small businesses often are not able to match the lower operating ______ of larger businesses.
costs
When asked, “What businesses do you believe are most concerned about you as a customer?” the majority of consumers identify _______ businesses.
small
If the failure of small businesses or large businesses higher?
small businesses
Many failures result from the inability to pay _________.
expenses
The following are the seven most common reasons for small business failure:
1. not keeping adequate records
2. not having enough start-up money
3. lack of management experience
4. lack of experience with the type of business
5. not controlling operating expenses
6. poor location for the business
7. failure to manage credit offered to customers
Local groups of business-people, such as _________ __ ________, have members who can help others with business problems.
Chambers of Commerce
Information about the SBA and its services can be obtained by visiting what website?
www.sba.gov
The SBA sponsors the SCORE, which is…
Service Corps of Retired Executives
Who are retired local business people who volunteer their services to counsel and mentor new business owners?
Service Corps of Retired Executives
The process of starting a business begins with an ______ and concludes with a careful study of information to establish whether the idea can be successful.
idea
When you start a business, you need to have the right place and _______.
time
A ______________ needs easy access to manufacturers where products are obtained for resale to other businesses.
wholesaler
Choosing the “________” members becomes one of the most important initial business decisions.
team
The most important step in starting a business is _____________.
preparation
The owners of businesses that fail often do not have a _________ _____.
business plan
What are the five key features to a business plan?
1. description of the business
2. customer analysis
3. operations plan
4. marketing plan
5. financial plans
Most business plans are developed for one year and then updated for the next year. True or false.
True
Who is in charge of developing the business plan?
business owner
What is the first step in developing the business plan?
gather and review information
What is the second step in developing the business plan?
develop strategic alternatives
What is the final step in developing the business plan?
each section of the business plan should be written
Several years of operation are required before it can become profitable. True or false.
True
What are the three types of financing?
1. start-up financing
2. short-term financing
3. long-term financing
What are the products or raw material on hand?
inventory
Short-term financing is obtained for a period of less than a year and often for one or two ________.
months
A corporation is owned and financed by the _____________.
shareholders