Intro and entrepreneurship

Question 1

What makes a business small?

Answer 1

-Independently owned and operated
-Not dominant in it’s field of operation

Question 2

The art and science of motivating people towards the achievement of a goal
-Energizing
-Channeling
-Sustaining people’s behaviors

Answer 2

Management

Question 3

What is an entrepreneur?

Answer 3

Someone who:
-Organizes
-Manages
-Assumes the risk of the business
-Does not have to be an owner

Question 4

A new business venture started from the beginning

Answer 4

Startups

Question 5

Type of entrepreneur that results from some severe hardship

Answer 5

Reluctant entrepreneur

Question 6

Type of entrepreneur that results from escaping an undesirable job

Answer 6

Corporate refugee

Question 7

Type of entrepreneur that results from innovative solutions to social needs, problems, and opportunities

Answer 7

Social entrepreneur

Question 8

A unique type of small business that grants substantial profits to it’s owner(s)

Answer 8

Attractive small firm

Question 9

A unique type of small business that permits the owner(s) to follow a desired pattern of living

Answer 9

Lifestyle business

Question 10

A unique type of small business that is a small firm with great prospects for growth

Answer 10

High potential venture (gazelle)

Question 11

A unique type of small business that provides minimal profit to it’s owner(s) and is a small firm

Answer 11

Micro business

Question 12

A unique type of small business that provides to a specific group of customers
-Identified need
-Narrow or speciality product/ service

Answer 12

Niche market

Question 13

What does the government look at when classifying a small business

Answer 13

-The number of employees
-Average revenue

Question 14

What are the two factors that make a business small?
1. Exact pr specified amount or measured
2. Distinct characteristic, pr opportunity, or attribute

Answer 14

1. Quantitative
2. Qualitative

Question 15

Federal government agency that deals with the financing, operation, and management of small businesses
-Est. 1953

Answer 15

The SBA - Small Business Association

Question 16

What is the SBA rule of thumb top make a business small?

Answer 16

The business has to have less than 500 employees

Question 17

Maximum size a business can be while still being eligible for federal government programs
-Separated by industry

Answer 17

SBA size standards table

Question 18

What breaks up the industry standards on the SBA size standard table?

Answer 18

The North American Industry Classification System (NAICS)
-Dollar sales volume
-Number of employees

Question 19

What is the dollar threshold on the NAICS that determines if a funeral home is large or big?

Answer 19

$12.5 million

Question 20

What are the qualitative characteristics that make a business small?

Answer 20

-Not a major impact on the industry
-Active management by owner(s)
-Highly personalized
-Geographically localized
-Dependent on internal capital
-Growth potential is limited

Question 21

What are the four things a small business manager is going to do?

Answer 21

1. Planning
2. Leading and directing
3. Organizing
4. Controlling and evaluating

Question 22

Personality type of manager who is the day to day doer
-Technical skills
-Independent
-Reluctant to delegate

Answer 22

Technician

Question 23

Personality type of manager who is the day to day planner
-Order and planning
-Delegates
-Puts fires out and starts new ones

Answer 23

Manager

Question 24

Personality type of manager who is the long term planner
-“How should the business work?”
-Business = system
-Strategizes

Answer 24

Entrepreneur

Question 25

Type of business that makes finished goods from raw material by hand or machinery

Answer 25

Manufacturing business

Question 26

Type of business that purchases finished goods for resale at a profit

Answer 26

Merchandising business

Question 27

Type of business that provides a service as opposed to a product

Answer 27

Service business

Question 28

Trying to obtain something that is being sought by others
-Similar circumstances
-Same time
Economic contributions of small business

Answer 28

Competition

Question 29

The introduction of something new
-Idea
-Method
-Device
Economic contributions of small business

Answer 29

Innovation