Chapter 1: The Twenty First Century Entrepreneur

Large firms can obtain _______ ______ _____ in some industries because of their ability to operate on a larger scale than can a small firm.

economies of scale

The fact that Walmart can buy its advertising much cheaper on a per-unit basis than a small retailer is an example of _____________.

economies of scale

A venture capital-backed business plan typically runs from ______ pages long.

25 to 45 page

The Europeans Union considers any business with fewer than ______ employees to be a small business.

50

The repayment rate on microloans is typically ________.

99%

Which of the following are important elements of a one-page pitch for your business?

Business model Customer problem Product offering

Which of the following statements are true regarding the closure of the military bases in the United States (US)?

Cites with base closing experience higher income growth. Cities with base closing offered tax breaks and programs to support new business development. Cities with base closing experienced increases in new businesses.

Which of the following are ways entrepreneurial businesses can act as catalysts for societal change?

Entrepreneurial businesses are willing to purse smaller markets ignored by large corporations. Entrepreneurial businesses have an understanding of local community.

A difference between entrepreneurial businesses and venture capital-backed firms is that ___________.

Entrepreneurial businesses' resources are more constrained than those of venture capital-backed businesses.

Which is associated not only with the success of the industrial base but also with the great abuses in business?

Robber barons

Which of the following are characteristics of venture capital-backed firms?

They are formed with a harvest plan in place. They have a developed organizational structure. They either start or grow quickly to employ a relatively large number of employees.

Identity a characteristic of venture capital start-ups

They are inherently risky operations whose growth is dependent on the exploitation of unknowns in the market.

Which of the following statements is true of venture capital start-up?

They are often formed as high-tech ventures consisting of unique characteristics.

Which of the following are goals of the business plan for a new entrepreneurial businesses?

To be a guide to managing the business. To provide self-evaluation. To provide investors with necessary information.

A difference between entrepreneurial businesses and venture capital-backed firms is that __________.

entrepreneurial businesses' resources are more constrained than those venture capital-backed businesses.

Thomas Stanley and William Danko, in their book 'The Millionaire Next Door', state that 75 percent of self-employed millionaires are _________.

entrepreneurs

The success of entrepreneurial businesses occur because they are simply more ______ than their larger corporate counterparts.

focused

The ________ ceiling refers to the fact that women and minorities may be hired by a large firms but they experience limits place on their advancement within the firm.

glass

A(n) _______ plan is a plan to exit the business that allows the investor that allows the investors to take advantage of growth.

harvest plan

What is the condition that allows the long-run average cost to continue downward as production increases?

Economies of scale

Silicon Valley and Boston's 128 corridor are well known for:

Providing a growing tax revenue base Providing a basis to the area's economic vitality Generating new employment with entrepreneurial ventures.

In context of businesses listed in Fortune 500, Henry Ford (Ford Motor Company), Steve Jobs (Apple), Ralph Lauren (fashion), and Sam Walton (Walmart) all started out as ____________.

small-business owners

Which significant, historical event marked the beginning of the decline of entrepreneurial businesses in the United States (US)

World War II

Cash flow, management team, and competitive advantage are key criteria presented in the _________ plan that provide essential information to potential investors.

business

What program is growing across the United States (US) to help start new entrepreneurial businesses in an area?

Economic Gardening

True or False: The Great Depression of the 1930s was harder on larger more mature businesses than on entrepreneurial businesses.

False

The World Bank estimates that one of the strongest factors in the growth of any nation's GNP is the presence of entrepreneurial ________ enterprises.

small- and medium- sized

Which of the following are reasons for the recent growth in the number of women starting new businesses?

Greater control over work-life balance. Frustration with the glass ceiling.

According to the text, which of the following is an important driver of the economic success of a community?

New business development

Which of the following are provided by the Economic Gardening program in the United States (US)?

Financing for the venture Support classes Tax incentives

Which periodical is published annually and documents the 500 largest corporations by sales in the United States (US)?

Fortune

_______ are often for only a few dollars each and are made directly to the entrepreneurs to encourage self-development in developing nations.

Microloans

________ are often for only a few dollars and are made directly to entrepreneurs to encourage self-development in developing nations.

Microloans

_________ include key suppliers, customers, and employees. These individuals are critical to the success of a business.

Stakeholders

Why do individuals decide to start a new business?

The desire to one's own boss.

In what time period did the United States (US) see a decline in large multinational firms and a rise of new opportunities for entrepreneurial businesses?

The late 1970s to early 1980s

Which of the following descriptions are characteristics of entrepreneurial firms?

The start-up is self-funded or closely funded. The operations is designed in the image of the founder. The number of employees will not be expected to grow beyond 100.

Which of the following statements are true regarding robber barons?

They dominated the industrial sectors They took advantage of the economies of scale They were responsible for some of the great abuses of business.

Which of the following are goals of the business plan for a new entrepreneurial business?

To provide self-evaluation. To be a guide to managing the business. To provide investors with necessary information.

Identify the reason individuals can become frustrated with working in a large corporation.

lack of promotion opportunities or the inflexibility of corporation in dealing with the needs of family and children.

Recent trends indicate that larger corporations have been ________, while entrepreneurial businesses have been ______ rapidly.

downsizing; growing

The practice, example, and the skill of the founder is the ________ part of entrepreneurial business development.

art

Large firms can obtain ______ _____ _____ in some industries because of their ability to operate on a larger scale than can a small firm.

economies of scale

The United States Small Administration (USSBA) was organized to:

Aid, counsel, and protect the interest of small businesses. Provide information at all levels of organizational development for entrepreneurial businesses. Provide assistance at all levels of management for entrepreneurial businesses.

Which of the following is a big advantage of starting one's own business?

The business owner can be the boss.

Which of the following are ways entrepreneurial businesses an act as catalysts for societal change?

Entrepreneurial busiensses have an understanding of the local community. Entrepreneurial businesses are willing to purse smaller market ignored by large corporations.

The process of _____ a new business is unique and has developed into a popular area of study at colleges around the globe.

Running Developing Initialing

The first category of start-up businesses are those formed as high-growth, often high-tech, ventures and are referred to as _________.

venture capital-backed firms

What are the critical elements that an entrepreneur must solve for success?

Develop an ability to generate consistent and growing sales. Sufficient resources to get the business to a point where it is self-funding. Sustainable operating profit margin.