Question
usace 33% 3:53 PM Read Only - You can't save change. .. 51 Three lactors contributing to the increased number of small businesses are downsizing outsourcing, growing dversity in entrepreneurship, and A) new business failure rates B) lifestyle enterprises C) tax advantages D) increased ease in taking a company pubic E technologies such as e-commerce 52 The fire thal bums within" that a person has to create a prolitable, sustainable business is called A) optimism B) fiscal discipline C) marksting strategy D) entrepreneurial spirit El entrepreneurial implementation 53) All of the tallowing would be qualities of successul entrepreneurs EXCEPT A) They leam from their mistakes and view their failures as opportunites to improve. B) They thrive in high-risk situations. C) They are driven by a passion to succeed. D) They are highly disciplinecd and willing to make sacrilices to succeed E They are highly adaptable in tems o pursuing new opporlunities. 54) All of the tllowing would be disadvandages to slarting your own business EXCEPT A) complete responsibility B) risk of losing your investment) C) lifestyle sacrifices during start-up D) high levels of stress El autonomy 55 Three ways to go into business lor yoursell are to slart a business from scraich, buy an existing business, and . A) purchase a franchise B) obtain venture capital C) pursue an inital public offering D) become a limited pariner El invest in a business incubato 56 When Barbara decided to go into business for hersel as a lonst, she decided to purchase an existing floral shop from an owner who was retiring. The advantages of buying an existing shop rather than starting a new one would include all of the following EXCEPT A) a known location B) an established cuslomer base C) a guaranteed income D) a funcliong business system El less icully obtaining inancing 5) A business plan is a writen document that summanzes the A) number of employees involved in the start up B) business's need for a loan C) personal linancial stalemets te business's owner:s Di ocation the business E nature f the business, its goals and its larget market 58) Preparing a business plan serves two functions. First, it outines the strategy for tuming a business idea into reality Second, it A) idetilies sources of patential employees for the business B) meels licensing regulations established by the local government C) fulfills the requiremends set foth by the Small Business Administralion D) assists the owners in preparing publicity releases for the business E) helps persuade lenders and investors to finance the business 59 An elfective business plan would inchxde al al the followin EXCEPT . A the business's mission and abjectves B) the business's management team C) loan documentation D) financial projections and requirements El a company oveview 60) In the section a business plan, yuu wouid explain how investors will be able to cash out or sell their inwestment, such as through a pubic slock orTering, sale or the company, or buyack o the investors' interest
Explanation / Answer
51. Three factors contributing to the increased number of small businesses are downsizing/outsourcing, growing diversity in enterpreneurship, and tax advantages. Small businesses receive various tax advantages from the Government to encourage enterpreneurship. Hence it is one of the factors contributing to the growth in no of small businesses. Hence C is the correct answer.
52. The fire that burns within that a person has to create a profitable, sustainable business is called enterpreneural spirit. This is the motive that drives an enterpreneur forward. Hence D is the correct choice.
53. B is the correct choice as thriving in high risk situatons is not a quality of enterpreneurship.
54. E- Autonomy is the correct choice. This is one of the advantages of starting our own business.
55. D-become a limited partner. This is another way of starting a business.
56. C-a guaranteed income. This is never ensured in business.
57. A business plan is a written document that summarizes the nature of business, it's goals and it's target market. This is as per the definition of a business plan which is a detailed discussion of the nature of the business, goals and other aspects. Hence E is the correct choice.
58. E- helps persuade lenders and investors to invest in the business. Without a business plan no lender/investor would be interested to invest in the business. Hence E is the correct choice.
59. C- Loan documentation. This is an agreement between the business entity and the bank/financial institution and is not a part of the business plan.
60. B- exit strategy. This section explains how the investors can sell their investment. Hence B is the right choice.
