chapter 6

Which of these refers to an unincorporated business owned by an individual for profit?

sole prop

An unincorporated business owned by an individual for profit is known as a(n)

sole proprietorship

Venya Hager started his one-man consulting business under the name Hager Associates. He likes the fact that he does not have to consider anyone else when making decisions. The legal structure for the company can best be described as a

sole proprietorship

If a small-business owner enjoys the chance to balance work and personal life, he or she would be considered a(n)

sustainer

A facility that provides shared office space, management support services, and management advice to entrepreneurs is known as a

business incubator

Borrowing money that has to be repaid at a later date in order to start a business is called

debt fianciing

Borrowing money that has to be repaid in order to start a business is known as

debt financing

Someone who recognizes a viable idea for a business product or service and carries it out is known as a(n)

entrepreneur

Which of the following is demonstrated by entrepreneurs who are willing to give up valued aspects of their lives, such as time and money, for the sake of starting their own business?

entrepreneurial sacrifice

Being interested in computers, Jose Cohata came up with an idea of personalizing screen saver programs with family pictures. After trying a couple of programs, Jose started marketing this service to neighbors and area businesses. Jose's activities can be described as a(n)

entrepreneurship

Which of these refers to the financing that consists of funds that are invested in exchange for ownership in the company?

equity financing

Trinity's Trikes believes that each employee should enjoy the idea of working on something that is new, creative, or personally meaningful. Trinity's Trikes exemplifies which of these categories of small-business owners?

idealists

What is the primary goal of the social entrepreneur?

improving society

Inspired by the growth of companies such as Amazon.com, where are many entrepreneurs flocking to in order to start new businesses?

internet

Which of the following is the most cited source of new business ideas?

internet

Which of the following are high-energy people who enjoy handling every detail of their own businesses?

jugglers

The drawback of a sole proprietorship includes

liability

Brady, Madison, and Stone started selling computer software on college campuses under the name Student Software Company. Each person contributed $1,500 toward start-up costs and agreed on dividing costs and profits equally. The legal structure for the company can best be described as a(n)

partnership

Which of the following is an unincorporated business owned by two or more people?

partnership

Entrepreneurs who aspire to start online businesses should implement all the following steps except

physical location

Social entrepreneurs are committed to both good business and

positive social change

Entrepreneurs that are committed to both good business and changing the world for the better are known as

social entrepreneurs

A group of companies or individuals that invest money in new or expanding businesses for ownership and potential profits is known as

venture capital firm