ch. 7 quiz

A well-written business plan should contain: a. executive summary or company overview b. a marketing plan c. a vision and mission statement d. a management plan e. all of the above

e. all of the above

Michael Bronner made a fortune in the direct marketing business as the cofounder and CEO of Bronner Slosberg Humphrey, a wildly successful direct-marketing firm. His newest venture, Upromise Inc., enlists some of America's largest corporations to help families pay for college and is extremely successful. Entrepreneur Bonner would more than likely have which of the following characteristics? a. Ambitious b. Independent c. Self-confident d. Visionary e. All of the above

e. all of the above

Once small businesses hire employees, they can _____ to increase job satisfaction and retain their employees. a. provide comfortable working conditions b. offer flexible working hours c. provide employee benefit programs d. share profits with employees e. do all of the above

e. do all of the above

_____ financing is a form of business financing consisting of borrowed funds that must be repaid with interest over a stated time period. a. Credit b. Debt c. Equity d. Monetary e. Venture

b. Debt

When Art Baer read that Singapore would lift its ban on chewing gum, he thought to himself, "There has to be a market there." Baer, 26, knew if he was going to move beyond the daydreaming stage, he had to move fast. After investing $20,000 of his own money into developing a product he called Impress Gum, Baer quit his job, flew to Singapore, talked to the right people in the government, lined up a manufacturer, and hired a marketing firm to promote his gum, which fights tooth decay. Baer is an example of a(n) ______ entrepreneur. a. growth-oriented b. classic c. opportunistic d. risk-aversive e. debt-based

b. classic

When he read Chicken Soup From the Soul, Joe Farmer was struck by how many of the stories mentioned the scent of the islands. So Farmer created bottles filled with Hawaiian air and some scented essence beads. When customers shake the bottles up and open the lids, they're transported back to paradise. While many marketing experts did not think that consumers would buy bottles of air, Farmer has earned more than half a million dollars of sale during his first year of operation. Farmer was an example of a _____ entrepreneur. a. growth-oriented b. classic c. opportunistic d. risk-aversive e. debt-based

b. classic

A common use of business plans is to: a. comply with SEC regulations b. persuade lenders and investors to c. finance the venture c. persuade customers to buy the new product or service d. use as a recruitment tool e. showcase innovative factors to production to make the company a success

b. persuade lenders and investors to finance the venture

Once Arnold Patel had decided he wanted to quit working as a Web designer for a large advertising agency and go into some kind of business for himself, he did a self-assessment, which indicated that he had an entrepreneurial spirit. His next step will be to: a. determine where the funding will come from b. look for customers c. create a business plan d. find the idea for his business e. choose a form of business organization

d. find the idea for his business

An entrepreneur is a person who _____ a business. a. finances b. manages c. locates d. owns and operates e. works for

d. owns and operates

Venture capital: a. is another name for the principal which a business borrows from a bank b. includes all the money the owner of the business invests in his or her new enterprise c. is borrowed money invested in start-up businesses and provided by the Small Business Administration d. gives the investor no voice in how the company in which he or she has invested will operate e. is financing obtained from investment firms that specialize in financing small, high-growth companies

e. is financing obtained from investment firms that specialize in financing small, high-growth companies

When Suzanne Pogell wanted to learn to sail, but she could find no one to teach her because men were the ones who sailed, and women were their crew. She finally convinced someone to teach her to sail, and after mastering sailing, she started an all-woman sailing school called Womanship. Pogell started small and plans to stay small. She would be correctly called a(n): a. interpreneur b. multipreneur c. intrapreneur d. growth entrepreneur e. micropreneur

e. micropreneur

Many classic entrepreneurs are _____ who start small and plan to keep their business small. a. interpreneurs b. multipreneurs c. intrapreneurs d. growth entrepreneurs e. micropreneurs

e. micropreneurs

Entrepreneurs, as a general group, dislike risk taking. True/False

false

The two sources for debt financing are angel investors and venture capitalists. True/False

false

An entrepreneur is a person who opens and manages his or her own business. True/False

true

Inadequate early planning is often at the core of small business failures. True/False

true

The Small Business Administration (SBA) assists small businesses by providing advice in management and financial matters. True/False

true

The first step in starting your own business is: a. to determine where the funding will come from b. a self-assessment c. a business plan d. find an idea for a new product or service e. choose a form of business organization

b. self assessment

The difference between the small business owner and the entrepreneur is that the entrepreneur: a. manages the business b. files taxes for the business c. assumes the risk of the business d. is responsible for the profits of the business e. is accurately described by all of the above

c. assumes the risk of the business

Gord Larose and his friend David Allan worked in Ottawa at Nortel Networks, a giant telecommunications-equipment maker. One Friday afternoon, over a few beers in Larose's kitchen, they dreamed up a scheme for renting software over the Internet. Instead of quitting their jobs, they reported to work on Monday, explained their plan to their boss, and began working to make their idea a reality. Four years later, their idea has evolved into an important division of Nortel called Channelware. Larose and Allan are examples of: a. interpreneurs b. multipreneurs c. intrapreneurs d. growth-oriented entrepreneurs e. Insourced entrepreneurs

c. intrapreneurs