Entrepreneurship and Small Business Certification Flashcard

Front

What is the primary purpose of a business plan?

Back

To guide the direction and development of the business

Front

Which of the following is NOT a component of a comprehensive business plan? Executive Summary, Market Analysis, Employee Handbook, Financial Projections

Back

Employee Handbook

Front

What is a unique selling proposition (USP)?

Back

A statement that explains how a product is different from and better than the competition.

Front

Which of the following is a key element of financial management in a small business? Choosing a business name, Developing a strong USP, Managing cash flow, Selecting a business location

Back

Managing cash flow

Front

What does the term "bootstrapping" refer to in the context of starting a business?

Back

Starting a business with minimal financial resources, relying on personal money or revenue from the business

Front

Which legal structure limits the liability of its owners, separating personal assets from the business's debts?

Back

Corporation

Front

What is the primary goal of marketing strategies in a small business?

Back

To communicate value to potential customers

Front

Which of the following best describes an entrepreneurial mindset? A focus on avoiding risks at all costs, A strong preference for routine and stability, A tendency to follow the latest business trends without question

Back

An ability to adapt, innovate, and embrace challenges

Front

In small business operations, inventory management is crucial. Which of the following is a benefit of effective inventory management? Increased legal liabilities, Higher employee turnover, Decreased customer satisfaction

Back

Reduced risk of overstocking and understocking

Front

What is the significance of understanding your target market in developing marketing strategies?

Back

It enables personalized marketing that resonates with the specific needs and wants of your audience.