Small Business Ownership Paths

True (A)

True (A)

<p>40%</p> Signup and view all the answers

<p>Can be kept small consciously to limit the magnitude of possible losses (A), Provide new, unique products or services (C), Use the most up-to-date technologies (E), Begin with a clean slate (F)</p> Signup and view all the answers

<p>The actual receiving and spending of cash by a business.</p> Signup and view all the answers

<p>Something the business owns that is expected to have economic value in the future.</p> Signup and view all the answers

<p>Have industry experience. (A), Choose a business that produces high margins. (B), Produce a product or service for which there is a proven demand. (C), Start the business with established customers. (D), Take part in a mentoring program. (E), Have a detailed start-up budget. (F), Secure outside investment. (G), Have previous experience in creating a start-up business. (H), Build trust in your &quot;story&quot;. (I), Start with more than one founder. (J), Start the business in a business incubator. (K), Have experience managing small firms. (L)</p> Signup and view all the answers

<p>Businesses that are operated from the owner's home.</p> Signup and view all the answers

<p>The process of two or more entities agreeing to work together for a common goal.</p> Signup and view all the answers

<p>Often requires less cash expense (C), Established customers (F), Business processes are already in place (G)</p> Signup and view all the answers

<p>The product or service should have demand and high margins (A), Adequate financing is crucial (B), Contact business brokers for assistance (C), The business should be in an industry in which you have experience (D)</p> Signup and view all the answers

<p>Make a personal examination of the site (or sites) of the business. (A), Study the financial reports and other records of the business. (B), Interview customers and suppliers of the business. (C), Negotiate an appropriate price for the business, based upon the business plan projections. (D), Conduct extensive interviews with the sellers of the business. (E), Obtain sufficient capital to purchase and operate the business. (F), Develop a detailed business plan for the acquisition. (G)</p> Signup and view all the answers

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<p>Common disadvantages include potential resistance from existing employees, the risk of an outdated reputation, and possible obsolete facilities and equipment.</p> Signup and view all the answers

<p>Having experience in the industry can lead to better decision-making and understanding of the market dynamics, ultimately increasing the chances of success.</p> Signup and view all the answers

<p>Business brokers facilitate the buying process by connecting buyers with sellers, helping navigate negotiations, and providing valuable market insights.</p> Signup and view all the answers

<p>Post-acquisition, developing a detailed business plan and negotiating an appropriate price based on future projections are crucial.</p> Signup and view all the answers

<p>Existing customers provide immediate revenue streams and can reduce the marketing costs needed to attract new clients.</p> Signup and view all the answers

<p>Existing businesses may come with unresolved issues or negative reputations.</p> Signup and view all the answers

<p>Hired managers can become owners through buyouts or management buy-in agreements.</p> Signup and view all the answers

<p>A key advantage is the ability to begin with a clean slate and utilize the latest technologies.</p> Signup and view all the answers

<p>Inheriting a family-owned business may lead to conflicts over management and ownership roles among family members.</p> Signup and view all the answers

<p>New businesses often lack initial name recognition, which can hinder customer acquisition.</p> Signup and view all the answers

<p>Entrepreneurs should consider the level of support and training provided by the franchisor compared to starting independently.</p> Signup and view all the answers

<p>One method is a leveraged buyout, where the buyer uses borrowed funds to finance the acquisition.</p> Signup and view all the answers

<p>Franchising provides established brand recognition and a proven business model.</p> Signup and view all the answers

The process of two or more entities agreeing to work together for a common goal.

A legal agreement that allows a business to be operated using the name and business procedures of another firm.

A new business that is started from scratch.

The actual receiving and spending of cash by a business.

Something the business owns that is expected to have economic value in the future.

Businesses that are operated from the owner's home.

A type of business ownership where an individual inherits a business from a family member.

The process of becoming a business owner by being hired as a manager and later gaining ownership.

The process of acquiring an existing business to start a new venture.

The process of starting a new business from scratch.

Having existing customers when starting a business.

Potential issues when purchasing an existing business, including resistance to change from existing employees, potential problems with the business's reputation, and outdated facilities or equipment.

The benefit of purchasing an existing business, including established customers, existing business processes, and less initial capital expense.

The benefit of starting a new business, including a clean slate, the ability to use the latest technologies, the ability to provide new and unique products or services, and limited potential losses due to a small scale.

The challenges of starting a new business, including limited name recognition, requiring significant time, financing difficulties, limited access to credit, and lack of experienced managers and workers.

The potential risks of inheriting a family business, including family conflicts, the potential for differing business philosophies, and the need to address existing issues.

The process of finding a business to purchase, including identifying a business in a familiar industry, evaluating the product or service, ensuring adequate financing, and contacting business brokers.

The process of conducting interviews with sellers, reviewing financial reports, evaluating the business site, interviewing customers and suppliers, developing a business plan for the acquisition, negotiating a price, and securing financing.

The process of starting a new business from scratch, buying an existing business, franchising a business, inheriting a family business, and being hired to be the professional manager of a small business.

The potential success of a new business is determined by factors such as industry attractiveness, market demand, competitive advantage, financing, management team, and sales and marketing strategies.

The ability to provide new and unique products or services that are not currently available in the market.

The ability to start a business with a clean slate and implement the latest technologies.

The ability to keep the business small to limit the potential losses in case of failure.

The ability to start a business without the need for brand recognition.

The need to dedicate substantial time and effort to starting a business.

The challenge of securing financial resources for a new business.

The challenge of obtaining revolving credit for a new business.

The challenge of finding skilled and experienced managers and workers for a new business.

The importance of conducting interviews with the sellers of a business.

The importance of studying the financial records of a business.

The importance of making a personal assessment of the physical location of a business.

The importance of interviewing customers and suppliers of a business.

Acquiring an existing business to start a new venture.

Potential drawbacks of purchasing an existing business, including resistance to change, reputation issues, and outdated facilities.

The actual receiving and spending of cash by a business.

Something a business owns expected to have future economic value.

A legal agreement allowing a business to operate under the name and procedures of another firm.

A new business started from scratch.

The advantages of starting a new business include beginning with a clean slate, using the latest technologies, offering unique products or services, and limiting potential losses by keeping it small.

The disadvantages of starting a new business include a lack of initial recognition, requiring significant time, difficulty in financing, limited access to credit, and a potential lack of experienced managers and employees.

The advantages of purchasing an existing business include already having established customers, existing business processes, and a lower initial capital expense.

The disadvantages of purchasing an existing business include potential resistance to change from existing employees, potential issues with the business's reputation, and outdated facilities or equipment.