Pregunta 1
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Small business is the foundation for all business.
Pregunta 2
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Fifty percent of businesses fail within the first four years.
Pregunta 3
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A small business start up is designed to take advantage of the skills of the founder or founders.
Pregunta 4
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One major aspect of a small business plan, it allows the owner to put information down in writing allowing for evaluation and honest analysis.
Pregunta 5
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Small-business growth is important in the United States and the world.
Pregunta 6
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The Fortune 500 companies employ ___________________ employees than ten years ago.
Pregunta 7
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A customer of a small business could be considered an important stakeholder to the success of a company.
Pregunta 8
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A small business' harvest plan is to put the profits back in the company.
Pregunta 9
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Individuals or other organizations that impact the success of a business are called
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corporate managers
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Capitalists
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Stakeholders
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Owners
Pregunta 10
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The largest group of new business owners is
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Hispanics
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retired men
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women
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Asians
Pregunta 11
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Small business resources are more _________________________ than large firms.
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plentiful
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constrained
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restrained
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inverse ration
Pregunta 12
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A small business owner's relationships with key suppliers and customers are of relatively little importance in a business' success.
Pregunta 13
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The most important person in a small business is the founder.
Pregunta 14
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One advantage that a large firm has over a small firm is economies of scale.
Pregunta 15
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The owner must be aware of his own tolerance of risk and establish a business that is consistent with that tolerance.
Pregunta 16
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Starting a new business could result from a particular event or condition within an individual's environment.
Pregunta 17
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Established businesses may be hesitant about buying from a start-up small business.
Pregunta 18
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Family members are in a unique position to keep an individual focused on pursuing the wrong approach to an issue.
Pregunta 19
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All of these are advantages for a small business except:
Pregunta 20
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____________________ states that individuals act to maximize their own individual benefit.
Pregunta 21
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The potential entrepreneur needs to consider ____________ when starting a new business.
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risk tolerance
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prior experience
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personality orientation
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all of the above
Pregunta 22
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The term for when a new business has reached a level where revenue coming into the firm is sufficient to cover expenses:
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Equal financial ratio
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No risk level
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Risk tolerance
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Break-even point
Pregunta 23
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When should an owner ensure there are sufficient financial resources to operate the business?
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Prior to the start
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Opening day
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First payroll
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Six month review
Pregunta 24
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The small business owner must have the necessary skills and must understand the marketplace.
Pregunta 25
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Large firms can respond more quickly to changes around them and fill niches better than small businesses.
Pregunta 26
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Many new businesses are formed as a result of an entrepreneur's previous work experience.
Pregunta 27
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New businesses are more likely to be successful when an entrepreneur creates a product or service before there is a need in the marketplace.
Pregunta 28
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A potential owner must be realistic about its competitors in products and the volume of sales.
Pregunta 29
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One of the greatest risks to a new business is fast growth.
Pregunta 30
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An example of an idea for a new startup from a hobby is _________________.
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A sports card collector who bought and sold cards for a year to build a personal collection, deciding to become a sports card dealer.
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A computer salesperson seeing the possibility of opening a new electronics store in a different part of the city.
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A purposeful exploration to find a new idea.
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A baker, who tosses ingredients together to see what they taste like.
Pregunta 31
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In forming a new business, the first thing a founder should do is:
Pregunta 32
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A small business owner must possess all of the following except:
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Necessary skills
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In depth understanding of the market
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Passion for starting a business
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Follow a sequential formula
Pregunta 33
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Potential owners should examine all of these specific areas except:
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Work experience
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Financial history
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Education
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Family history
Pregunta 34
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The process of generating new business ideas is something that occurs automatically.
Pregunta 35
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Potential generation of new business ideas occur:
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When dismissing a promising idea.
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When copying an existing business.
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Automatically.
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Because of the process of identifying skills and opportunities in the market.
Pregunta 36
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Mark brings his friends together to generate ideas on his new business. This is called ________.
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business meeting
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gap analysis
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brainstorming
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focus group
Pregunta 37
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_________ is the threat to the success of a new business related to its ability to establish and maintain a high margin product or service.
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Profit margin
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Sales generation scheme
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Operational financing
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Deficit gap
Pregunta 38
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A small business owner must understand when an opportunity for a new business is truly an opportunity.
Pregunta 39
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An owner, when researching a new business, needs to be aware of all potential customers.
Pregunta 40
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New business owners do not need to identify customer needs because the competitors already have.
Pregunta 41
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A major cause for failure of a new business is lack of focus on the competitive advantage.
Pregunta 42
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A small business can compete on a cost basis with a larger firm.
Pregunta 43
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An owner, when researching a new business, needs to be aware of, and be able to describe, all potential customers.
Pregunta 44
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The first section of an external analysis is to:
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research potential substitutes.
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develop a competitive edge.
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identify potential customers.
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determine in which industry the new business will compete.
Pregunta 45
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Companies will ___________ their knowledge if your business is not a potential competitor.
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share
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not share
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hide
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distort
Pregunta 46
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__________ is the edge a business has over competing businesses.
Pregunta 47
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______________ is an area of business that uses standards that are necessary for the business.
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Competitive map
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Benchmarking
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Unorthodox practices
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Orthodox practices
Pregunta 48
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___________ describes those areas of a business that are unique or unusual as compared to standard practices of the industry.
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Competitive map
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Benchmarking
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Unorthodox practices
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Orthodox practices
Pregunta 49
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A competitive advantage in a business could be ____________________.
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location
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product selection
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activity of the firm
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all of the above
Pregunta 50
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A(n) ___________ exists if the service or product performs a similar function.
Pregunta 51
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An entrepreneur cannot leave his or her business due to the amount of money that was invested. This is called a(n) ______________.
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harvest plan
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exit strategy
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benchmarking
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exit barrier
Pregunta 52
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______________ demonstrates how easy it is for a customer to switch to substitutes.
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Elasticity of demand
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Competitive map
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Trade-ins
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Benchmarking
Pregunta 53
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The mission of a business needs to be actionable, which means assist employees to make decisions.
Pregunta 54
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The mission statement and strategies can be developed after identifying potential customers.
Pregunta 55
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A business owner should never change its mission statement or strategy.
Pregunta 56
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A sustainable competitive advantage is an advantage that other firms cannot immediately copy.
Pregunta 57
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Michael Porter describes a low cost strategy as a company seeking to be the lowest cost firm in the industry.
Pregunta 58
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An overall strategy assists the business by targeting its effort in specific areas.
Pregunta 59
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It is critical for a new business to conserve its resources and focus on areas that have potential to maximize the firms' resources.
Pregunta 60
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____________ is (are) a brief statement that summarizes how and where the firm will compete in the industry.
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Core values
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Mission statement
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Strategies
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Goal statements
Pregunta 61
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An owner should establish the mission statement and strategies ____________.
Pregunta 62
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_____________ provides you with the opportunity to make money when other businesses cannot easily copy your advantages.
Pregunta 63
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All of these are tangible assets except:
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location
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industry experience
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computer systems
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business license
Pregunta 64
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What are the two measures used to evaluate whether a person or firm is meeting its goals?
Pregunta 65
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According to the book, the greatest source of sustainable advantage is:
Pregunta 66
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In a proposed new business, the financial analysis focuses exclusively upon its ability to generate positive cash flow.
Pregunta 67
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When there is a difference between managers and owners, profits are a useful measure as a means to evaluate performance.
Pregunta 68
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Cash is "king" in small business.
Pregunta 69
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A pro forma is a term describing estimates of what the balance sheets and income statements will look like in the future.
Pregunta 70
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Break-even analysis is the estimation of when a business's income exceeds its expenses.
Pregunta 71
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Cash flow is the positive movement of money into the firm to pay the bills.
Pregunta 72
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An investment in the firm by the owner is called ______________.
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equity
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profit
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receivables
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margin
Pregunta 73
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According to the book, the most dangerous situation for a new business is _______.
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uneven growth
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no growth
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rapid growth
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slow growth
Pregunta 74
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____________ is the analysis of the differences between the predicted and the actual performance of the business.
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Deviation analysis
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Gap analysis
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Margin analysis
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Profit analysis
Pregunta 75
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The cash flow statement is used to describe _________ percent of the activities that provide and use cash during a specified period of time.