Microenterprise Prep #6

___, also known as ____, is funds lent to a business with an agreement that the business will repay the lender with interest. (choose 2 options)

• credit

• debt

• debit

• deposit

A conflict of interest is:

• when business partners have an honest disagreement about their next advertising campaign

• when an accountant disagrees with the IRS on how much a company owes in income taxes

• a situation in which an individual might take an action to his/her advantage that would be to the disadvantage of a person or company that believe this individual is serving them

• naturally occurring whenever there is competition between small businesses

Bank loan applications:

• can be intimidating, complex and detailed

• are easy to complete

• are short

• can only be completed in the presence of a banker during regular work hours

_____ is the ability to pursue a task without being told to by someone else.

• Problem Solving

• Self-Discipline

• Self-Motivation

• Teamwork

Consuelo's gift store has an opportunity that will disappear if they don't move quickly. A competitor is moving to another state and they've offered to sell Consuelo their inventory at 25% of retail value. Consuelo has inspected the inventory, it's in perfect condition and includes all of the most popular items that Consuelo's store sells every day. In the upcoming holiday season 60 days away Consuelo is sure the store can sell pretty much all of this inventory. Unfortunately this offer is only open for 48 hours, after that, the competitor will sell to another buyer. What type of financing should Consuelo seek?

• online credit

• mortgage

• bank credit

• none, the numbers indicate this will not be a profitable business decision

Characteristics of successful entrepreneurs include:

• pessimism

• territorial

• optimism

• ineffective

Characteristics of successful entrepreneurs include:

• grit

• submission

• self-importance

• short attention span

Businesses should always set their prices:

• lower than their competitors prices

• low enough so that revenues are below variable expenses

• to reflect the value of their goods or services, not just their costs

• higher than their competitors prices

_____ is an individual’s self-commitment to overcome obstacles to achieve long-term goals.

• Personal Capabilities

• Grit

• Problem Solving

• Communications Skills

Advertising can be important for a new business because it:

• communicates a differentiated message to your target customers

• is a free form of promotion

• allows the new business to set up a network of distributors

• is a low-cost method to increase revenues