Podcast
Questions and Answers
Which of the following are assessed in the executive summary? (Select all that apply)
The business overview highlights strategic initiatives and competitive advantages.
True
The mission statement is a vision statement.
False
What does a vision statement describe?
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Which of the following are considered benefits to the community? (Select all that apply)
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What are some economic development factors?
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Goals are quantifiable and specify a timeframe for results.
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Objectives are distinct from goals because they are quantifiable.
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What is a reason for small business failure? (Select all that apply)
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Which of the following are advantages of small businesses? (Select all that apply)
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What is an artisan entrepreneur?
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What does an opportunity involve in entrepreneurship?
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Study Notes
Executive Summary
- Assesses the business, products/services, strategic position, competition, industry analysis and trends, marketing plan, use of proceeds summary, and income and assets summary.
Benefits to the Community
- Benefits include job creation, purchasing local supplies, and economic development.
- Economic development includes new skills and training, career advancement opportunities, leadership development, and attractive wages.
- Benefits do not include only community development.
Business Overview
- Describes the business's vision, mission, values, goals, objectives, and corporate strategies.
- Highlights strategic initiatives and emphasizes competitive advantages.
Mission Statement
- A broad statement describing the business's purpose, long-term aspirations, core activities, strategic goals, and business priorities.
- It does not affirm long-term commitment to the mission.
- Guides employees with a clear direction and sense of purpose.
- Communicates the business's purpose to internal and external stakeholders.
Vision Statement
- An inspiring statement of what the business aims to become in the future.
- Often includes competitive terms and describes future aspirations without specifying the means needed to reach them.
Core Values
- Reflect the business's core ideology and are independent of current industry trends and product life cycles.
- Values are not immutable and can change even if the industry changes.
Goals and Objectives
- Goals are broad business results, while objectives are quantifiable and specify a timeframe for results.
- Objectives link the mission statement to business actions and influence organizational choices.
Reasons for Small Business Failure
- Money-related problems, including capital or money needed to operate.
- Cash flow obstacles.
- Lack of management skills.
- Success and expansion, which can lead to problems such as overexpansion and loss of control.
Advantages and Disadvantages of Small Businesses
- Advantages include personal relationships with customers and employees.
- Disadvantages do not include personal relationships, adaptability to changes, simple record keeping, or high potential.
Other Factors Affecting Small Businesses
- Owner-managers need permissions to adapt changes.
- Technical opportunities allow for growth into bigger businesses.
- Small businesses are hit hard by recessions.
- Limited ability to raise capital.
- Well-conceived plans can help avoid risks.
- Founders, who initiate new businesses, can be inventors, pure entrepreneurs, or artisan entrepreneurs.
- Bringing a firm into existence involves surveying markets, raising funds, arranging facilities, and acting as an administrator.
- Second-generation entrepreneurs follow founders.
Entrepreneurial Opportunities and Small Businesses
- A promising entrepreneurial opportunity involves a product or service appealing enough for customers to pay for.
- A given opportunity is not equally attractive to all businesses.
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Description
This quiz covers key aspects of business strategy, including the assessment of market position, competition, and strategic initiatives. It also explores the benefits that businesses provide to the community, such as job creation and economic development. Test your knowledge on these crucial components of business operations.