Small Business Management, Exam 1 Study Guide Review With 56 Correctly Answered Questions Latest Update .

What are the three kinds of intellectual capital? {Ans: Human, Structural, and Customer}When it comes to gathering market research on customers, most small companies tend to be {Ans: Data rich with lots of facts, but information poor with little in a useful form}One advantage of buying an existing business is {Ans: equipment is installed and production capacity is known}Before making a sales call, a salesperson has what 3 primary objectives? {Ans: A primary, minimum, and visionary.}What are the forces driving entrepreneurship? {Ans: Education availability, entrepreneurs seen as heroes, shift to a service economy, independent lifestyle, technology/internet, outsourcing, economic and demographic factors}How many customers go more than halfway into a store? {Ans: Only about one-fourth}How many companies fail within the first 4 years? {Ans: about 54%}Diversity in small business includes {Ans: Women, young people, minorities, immigrants, part-time, home-based, family, copreneurs, castoffs/dropouts, retired baby boomers}Which of the following statements concerning the financing of a business purchase is true? {Ans: The buyer should be able to make payments on the loans out of the company's cash flow}Purchasing rival companies products, taking them apart, and analyzing them is called {Ans: Benchmarking}Studies show that customers