Question 1

The Small Business Administration sponsors volunteers from industry,trade associations,and education who offer advice to small business owners.These volunteers are called:

Accepted Answer

The Service Corps of Retired Executives (SCORE) is a program of the Small Business Administration that provides volunteer business mentors to small business owners. These mentors are retired professionals from various industries who offer guidance and advice to help entrepreneurs start and grow their businesses.

Question 2

The executive summary section of the business plan contains:

Accepted Answer

The executive summary should provide a brief overview of the entire business plan and highlight the most important points that would interest potential investors, such as the market opportunity, unique selling proposition, and financial projections. It should be concise, persuasive, and engaging enough to capture the attention of busy investors who receive many proposals every day. The other options, such as computerized information, personal qualifications, or financial summaries, may be important in other parts of the business plan, but they are not essential components of the executive summary.

Question 3

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 __________.

Accepted Answer

Seeking the advice of an attorney is the best option when putting together official documents such as leases, contracts, and partnership agreements. They can provide legal expertise and ensure that the documents are legally binding and protect the interests of the business. Friends who have started a business may not have legal expertise, competitors may not have the best interests of the business in mind, and marketing experts may not have expertise in legal documents.

Question 4

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

Accepted Answer

To be considered part of a market, an individual needs the willingness to buy and the financial resources necessary to purchase goods or services. Registration or recent purchases are not necessary, and knowledge of seller names and addresses is not a defining factor.

Question 5

A market consists of potential buyers of a good or service.However,for a market to exist:

Accepted Answer

For a market to exist, there must be a group of people with unsatisfied needs or wants who also have the willingness and ability to buy. A market does not necessarily require wholesalers, a dominant firm, or FDA approval.

Question 6

Entrepreneurs learn that there are many legal and financial issues involved in starting their business.The best way for the small business owner to resolve these issues and protect the firm's resources is:

Accepted Answer

Seeking and paying for expert guidance and assistance is the best choice for small business owners to resolve legal and financial issues. While common sense can be helpful, there are many complex regulations and laws that may require specialized knowledge. Hiring full-time lawyers and accountants may not be feasible for small businesses and deferring decisions can be risky. Seeking guidance from trusted advisors can ensure that the business is making informed decisions and protecting its resources.

Question 7

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

Accepted Answer

Bankers will generally expect entrepreneurs applying for a loan to provide a detailed business plan, including financial projections and a description of the business model. This helps the banker assess the risks associated with the loan and determine whether or not it is a prudent investment. Other factors may also be considered, such as the entrepreneur's credit history, collateral, and equity investment in the business.

Question 8

Which of the following is not a recommended source of small business advice for persons contemplating a new business?

Accepted Answer

The answer of Which of the following is not a...

Question 9

A good business plan will:

Accepted Answer

A good business plan should provide a comprehensive overview of the business, including details about the product or service, target market, competition, financial resources, and the owner's qualifications. It should not be vague and should provide specific details to guide decision-making and ensure the success of the business. Personal information about the owner may be included if it is relevant to the business, but it should not be the focus of the plan.

Question 10

A Small Business Investment Company SBIC)is an):

Accepted Answer

A Small Business Investment Company (SBIC) is a privately-owned and managed investment company licensed by the Small Business Administration (SBA) to make loans and equity investments to small businesses. It operates as a bridge between investors and small businesses, providing much-needed funding to help them start or expand operations. SBICs typically focus on small businesses that are unable to obtain financing through traditional lending institutions.

Question 11

When seeking financial backing from a venture capitalist,a small business owner should realize that the venture capitalist will:

Accepted Answer

Venture capitalists typically invest in a business in exchange for an ownership stake in the company. They are also interested in the management and growth of the business, making B incorrect. The interest rate and repayment terms are negotiable and can vary, making A and D incorrect.

Question 12

Small business owners often struggle in attracting qualified workers.Which of the following contributes to this problem?

Accepted Answer

Many small businesses cannot afford to pay high salaries or offer extensive benefit packages, which makes it difficult to attract qualified workers who may have more attractive options available to them at larger companies with better compensation packages.

Question 13

A ________ refers to people with unsatisfied wants and needs who are willing and able to buy a product or service.

Accepted Answer

A market consists of individuals or groups of people who have the willingness and ability to buy a product or service.

Question 14

The Small Business Administration's microloan program awards loans to entrepreneurs based primarily on their:

Accepted Answer

The Small Business Administration's microloan program is geared towards startups and small businesses and focuses on the borrower's integrity and sound business idea as the primary criteria for awarding loans. While collateral and credit history may also be considered, they are not the primary factors. Previous business success may be taken into account, but it is not a requirement for eligibility.

Question 15

A new business that sets up an)_____________ from the start is saving itself time and grief later.

Accepted Answer

A good accounting system from the start can save a business time and grief later on by ensuring that financial records are accurate and up-to-date, making it easier to manage finances, pay taxes, and make informed business decisions. A detailed supplier network and vertical marketing system may also be important, but not necessarily from the very beginning of the business. An angel investment network may be helpful in securing funding, but it is not directly related to the efficiency and organization of the business's operations.

Question 16

One of the best places for young entrepreneurs to start shopping for a SBA loan is a:

Accepted Answer

A Small Business Development Center (SBDC) is a great resource for young entrepreneurs who are looking for SBA loans. These centers offer free one-on-one counseling, advice, and training to help entrepreneurs start and grow their businesses. SBDCs also work closely with SBA lenders and can help young entrepreneurs connect with the right lender for their needs. Additionally, SBDCs can help young entrepreneurs navigate the loan application process and improve their chances of getting approved for a loan.

Question 17

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

Accepted Answer

Small businesses need to make marketing decisions before a product is developed or a store is opened. This helps in identifying the target audience, understanding their needs and wants, evaluating competition, and selecting appropriate marketing channels. Making marketing decisions after the product is developed or the store is opened may result in wasted resources, ineffective targeting, and missed opportunities.

Question 18

An)____________ is a valuable source of information regarding techniques to reduce a firm's exposure to risk.

Accepted Answer

The answer of An)____________ is a valuable source of information...

Question 19

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:

Accepted Answer

The answer of Employees of small businesses often have greater...

Question 20

Small business employees:

Accepted Answer

Small business employees often have more job satisfaction than employees in big business. Small businesses provide a sense of community, a closer relationship with managers and owners, and more opportunities for employee involvement in decision-making processes.

Quiz 6: Entrepreneurship and Starting a Small Business