Operating A Small Business: Test 1 Material

Question 0

Criteria of a business

1. Quantitative
2. Qualitative

Answer 0

Quantitive Criteria: 
 A. Mining/Manufacturing
      I. 500-1500 employees
B. Wholesale Trade
      I. Only up to 500 employees
C. Retail Trade
     I. 20-100 employees
D. Services
     I. 25-300 employees

Qualitative Criteria:

• Actively managed by it’s owners
• Highly personalized
• Largely local in its area of operations
• Largely dependent on its intend sources of capital to finance its growth
• Business is not a major force in the particular industry (not dominate)

Question 1

Small Business Administration

PRINCIPLE GOVERNMENT AGENCY

Answer 1

The small business administration by definition is : the principle government agency concerned with the financing, operation, and management of a small business.

Question 2

Market

A need of want

Answer 2

Market by definition is a group of potential customers possessing purchasing power and unsatisfied needs.

Question 3

Market Survey

Locating the unsatisfied needs

Answer 3

Market Survey by definition is to process used to determine where potential customers with unsatisfied needs are.

Market Survey Procedures:
A. Demographics ( the statistical study of human populations with respect to their size, density, distribution, composition and income)
B. Economic Base ( wealth produced in or near a community that provides employment and income to the local population)
C. Population Trends
D. Income Trends / Changes
E. Competition
F. Social & Business Climates

Question 4

Human Resource Management

Answer 4

The Human Resource Management is the determining of personal needs in terms of numbers of individuals and their required skills

Question 5

Types of Census

Answer 5

Census of Population

Census of Business

Census of Housing

Census of Manufacture

Question 6

Entrepreneur

Answer 6

One who organizes, manages, and assumes the risk of a business firm.

Question 7

Competition

Answer 7

Competition is the practice of trying to obtain something that is being sought by others under similar circumstances at the same time.

Question 8

Legal Forms Of Business

Answer 8

Sole Proprietorship: a business owned and operated by a single person

Partnership: a business owned by two or more persons

Corporation: a legal entity authorized by a state to operate a business under the entity’s character or articles of incorporation, an artificial being indivisible, intangible and existing only in the contemplation of law.

LLC: Limited Liability Company