The starting point for virtually every new business is a business plan, in which the entrepreneur summarizes business strategy for the new venture and shows how it will be implemented. Entrepreneurs must also decide whether to buy an existing business, operate a franchise, or start from scratch. Further, common funding sources include personal funds, family and friends, savings, lenders, investors, and government
agencies. Venture capital companies are groups of small investors seeking to make a profit on companies with rapid growth potential. Most of these firms do not lend money but rather invest it, supplying capital in return for partial ownership. Lending institutions are more likely to finance an existing business than a new business because the risks are better understood.
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Which of the following is a government agency charged with assisting small businesses?
The U.S. Small Business Administration (SBA) was created in 1953 as an independent agency of the Federal Government to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation.
Which of the following is federally licensed to borrow money from the Small Business Administration to invest in or lend to small businesses quizlet?
SBICs are federally licensed to borrow money from the SBA to invest in or lend to small businesses.
Which of the following most contributes to small business failure?
The most common reasons small businesses fail include a lack of capital or funding, retaining an inadequate management team, a faulty infrastructure or business model, and unsuccessful marketing initiatives.
Which business is best categorized as a small business quizlet?
A small business is any independently owned and operated business that is not dominant in its competitive area and does not employ more than 500 people.
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