Bus100 Types of businesses
Unlike large corporations, sole proprietorships do not need a business plan
All types of businesses need a business plan
are individual investors or groups of experienced investors who provide funding for start-up businesses.
Angel investors
_____ are entrepreneurs who apply their creativity, vision, and risk taking within a large corporation rather than starting a company of their own. They enjoy a high degree of autonomy while receiving a regular salary and financial backing from their employer
Intrapreneurs
List three advantages that small businesses have over larger, more complex companies.
The text lists the following four: (1) greater flexibility, (2) more efficient operation, (3) greater ability to service specialized markets, and (4) more personal service.
The two sources for debt financing are angel investors and venture capitalists.
Those are the two sources of equity financing
The difference between small business owners and entrepreneurs is that small business owners
accept the status quo and take a short-term view of the future
The difference between the small business owner and the entrepreneur is that the entrepreneur
assumes the risk of the business
After graduating from college, Joseph Tantillo decided to start a retail Web site that specializes in personalized Greek apparel. To fund his Web site, he borrowed money from his parents (who expect to be repaid with interest). In other words, he used _____ financing.
debt
The two forms of business financing are _____ (borrowed funds) and _____ (ownership funds).
debt; equity
Venture capital
is financing obtained from investment firms that specialize in financing small, high-growth companies
One of the reasons why there has been a dramatic increase in the number of small business startups is rapidly changing technology
true
List four common causes for business failure
Economic factors Financial causes Lack of experience Personal reasons
Which of the following elements does NOT typically appear in a well-prepared business plan?
names of all employees
Who provides the start-up financing for the majority of new small businesses?
the business owner and his or her family and friends