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Make it less expensively.
Combine it with another product.
Adapt it to a new market.
What are ways to alter a product to create a new business idea?
It makes you think through every detail.
How can creating a business plan make you a more effective business owner?
Supplier and barter arrangements
Short-term credit, extended-payment plans, and barter arrangements
Financial institutions
Banks, savings and loans, and credit unions
Small Business Administration-backed loans
U.S. government assistance in financing, management training, and support in securing government contracts
Angel investors and venture capitalists
Individuals and companies who invest in new enterprises
Any amount up to $50,000
so 6,000 and 26,000 are the correct answers for this question
Which amounts could be considered "microloans"?
Small businesses
What is the name given to enterprises that are independently owned and run, are not dominant in their field, and meet government criteria for number of employees and amount of profit?
Combine two existing products into one new product.
Select a feature of an existing product to create a spin-off.
Find an existing product and make it less expensive to produce.
Jacob is an entrepreneur looking for his next big business idea. What are ways he can generate new ideas?
They represent the majority of sales in the United States.
They provide a large number of jobs.
Which of these statements are true about the importance of small businesses to the U.S. economy?
Creating a business plan
Which of these would be most helpful in getting financing and thinking through important details about your business idea?
Less work than starting from scratch
Already-developed resources
What benefits may entrepreneurs expect when they buy an existing business?
Second mortgage
Loan from a friend
Which funding sources are most likely to be based on personal finances?
Inadequate managing skills
Tanya opens a restaurant despite the fact that she has never worked at a restaurant.
Lack of financial support
Marcel owns a clothing store shop that sells designer clothes but has no savings on hand to weather an economic downturn.
Difficulty hiring and keeping good employees
Destinee loses workers to other companies who offer better benefits.
Aggressive competition
Nicolette notices that another yoga studio has opened down the block from hers and that it offers longer hours and cheaper classes.
Government paperwork
Marta wants to apply for a permit to sell alcohol at her cafe, but she is having a hard time understanding the liquor license permitting process.
Receiving a microloan from a sympathetic organization like Prosper.com
Working a second job
Online fundraising
What are low-risk ways for entrepreneurs to keep their business afloat before it becomes profitable or during hard times?
Unlimited financial liability
Inability to sell the business
What are disadvantages of sole proprietorship?
Independent ownership
A limited number of employees
What characteristics define a small business?
They are owned and usually managed by one person
Which is a true statement about sole proprietorships?
They help to offset the effects of corporate downsizing.
What influence do small businesses have on corporate downsizing in the United States?
Franchisor
Rashid is a business owner who allows others to sell his products. What term best describes Rashid?
A list of previous customers
An established location
What factors may make buying an existing business the right choice for an entrepreneur?
To grow the company
What is the purpose of both mergers and acquisitions?
Difficulty keeping good employees
All the well-qualified, high-performing workers Sonya has hired have quit. They tell her that they enjoy the job but that it does not pay well enough and there aren't opportunities for growth or promotion. If Sonya's business fails, what will be the likely cause?
You can start the business easily.
What is an advantage of sole proprietorship?
When two companies come together to form a new company
What is a merger?
sole
A(n) _______ proprietorship is a business owned and typically managed by one person.
An acquisition
What is the term that describes when one company buys another company?
buys
The difference between a franchisee and a franchisor is that the franchisee ______ a franchise.
Statutory
Written laws created by legislative bodies
Common
Laws made by judges ruling on cases based on precedents
Administrative
Rules and regulations made by administrative agencies at all levels of government
International
Laws that govern activities between nations
Merger
Bert and Ernie come together to form a new company; Exxon and Mobil join to become ExxonMobil.
Acquisition
Company A buys Company B., Amazon purchases Whole Foods, Verizon Communications buys Verizon Wireless.
Aggressive competition
Lack of financial support
Anthony opens a taco shop on the same street as another taco shop, a burrito stand, and a sit-down Mexican restaurant. He knows that his food is good, but he is worried that the interior of his small shop is unattractive. He would love to put a fresh coat of paint on the walls and generally make the place look better to entice customers to come inside. But his family and friends will not loan him money, his suppliers have refused to extend him a line of short-term credit, and his bank wants him to put his motorcycle up for collateral, which he does not want to do. Which of these are likely to cause Anthony's business to fail?
Six
To be legally enforceable, a contract must meet each of ______ conditions.
merger
A ______ occurs when two companies join to form a new company.
Property
You need to pay a certain amount of tax for the space from which you operate your business even though you own that space. What kind of tax are you paying?
acquisition
A(n) _______ occurs when one company buys another one.
Statutory
You run your business in Illinois. The state passes a law that all companies must charge an 8% sales tax on every product they sell. Which type of law is this?
To grow the company
What is the purpose of both mergers and acquisitions?
breech
The failure or refusal of a party to a contract to live up to the promises made is called a ________ of a contract.
Sales
You are a clothing store owner, and your customers must pay a tax on every piece of clothing they buy. What kind of tax are the customers paying?
An acquisition
What is the term that describes when one company buys another company?
International
A new law is established that limits the number of imports from a certain trade bloc to your country. Which type of law is this?
