Chapter 6 intro BUS 160

______ refers to accepting the risk of starting and running a business. Multiple choice question.

Entrepreneurship

Gaining financing, knowing how to get started in exporting, and navigating bureaucratic paperwork are major hurdles to consider when getting started in _____ business.

global

What two questions do entrepreneurs often ask themselves?

(1) What do I want, but can never find? (2) What really irritates me, and what product or service would help?

What is a good tactic for entrepreneurs to implement in order to keep a new company growing?

delegate authority to employees

The expansion and development of the Internet has sprouted a world of small web-based businesses. This, among other reasons, may explain why online sales are rapidly:

increasing

Managing a small business became relatively easy with the advent of inexpensive personal computers. Inexpensive computer systems and off-the-shelf or even free, open-source software make it easy for the small business manager to

manage customer records follow the daily sales and expenses

A small business is defined as:

one that is independently owned and operated one that meets certain standards of size in terms of employees or receipts one that is not dominant in its field

Although there are many functions that are important in both the start-up and management phases of the business, what two functions are considered to be primary concerns?

planning and financing

What are three attributes of successful entrepreneurs?

(1) action-oriented (2) highly energetic (3) tolerant of uncertainty

reasons why people become entrepreneurs.

(1) independence (2) opportunity (3) profit

What advice would established entrepreneurs likely tell a new, would-be business owner?

Make sure your business is not undercapitalized.

Since entrepreneurs can't compete with larger firms' pay and benefits, what are three ways they can motivate employees?

be respectful of employees' opinions provide more challenging opportunities to learn maintain good employee relations

A(n) ______ is a detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competition, and the resources and qualifications of the owner(s).

business plan

Some causes of small-business _____ include underpricing or overpricing goods or services, starting with too little capital, going into business without first learning something about the industry or market, and underestimating how much time it will take to build a market.

failure

According to a recent study, offering low-cost offices with basic services to new businesses in the early stages of development results in an 87% success rate of _______ graduates.

incubator

Business _______ Correct Unavailable are centers that offer businesses in the critical stage of early development low-cost offices and access to basic

incubators

All consumers with unsatisfied wants and needs who have both resources and the willingness to buy are:

market

Classes on small business and entrepreneurship offered at a local community college offer prospective business owners the chance to ______.

meet with experienced entrepreneurs to get advice and form support networks

Some common causes of small business failure include:

no experience in that business or industry starting with too little capital underpricing or overpricing goods or services

Two advantages small firms have over large firms include more personal customer service and the ability to respond quickly to _____.

opportunities

All organizations require the following

planning information management capital

What two items are described in a business plan?

the resources and qualifications of its owner(s) the target market

A business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size in terms of employees or annual receipts is a(n):

small business

Identify the principle characteristic of an entrepreneur.

A tendency toward self-discipline

What two advantages do small businesses have over larger companies?

Able to respond quickly to opportunities More personal customer service

What is the best definition of entrepreneurship?

Accepting the risk of starting and running a business

______ are creative people who work as entrepreneurs within corporations.

Intrapreneurs

Chris spent his own money on marketing research, and consulted his sister Kara, who is an accountant. They spent the next few months writing a business plan. Which of the following are some business functions Chris would have addressed?

Marketing Financing Planning

Select the characteristics of an entrepreneurial team that will be developing and marketing a new product.

Members have complementary skills and are creative Each from different areas of business A group of experienced people

______ want to maintain a balanced life style while doing the kind of work they want to do.

Micropreneurs

What two advantages do small businesses have over larger companies? Multiple select question.

More personal customer service Able to respond quickly to opportunities

What is the outlook for online businesses?

Online sales are projected to increase.

True or false: Most entrepreneurs do not get their ideas from a flash of inspiration; they come more from their passions or looking at problems.

True

True or false: The principles of management are similar for a small neighborhood business and a giant global firm.

True

What term is given to individuals or companies that invest in new businesses in exchange for partial ownership in those businesses?

Venture capitalists

An inexpensive marketing research study may help you determine which of the following?

What is an effective strategy for reaching your target market Whom to select as your target market Where to locate

What are three good ways to learn how to run your own business?

Work for a successful entrepreneur Run a small business during your off hours Talk to other business owners

There are a few hurdles that prevent many small businesses from engaging in the global market. What are two examples of such problems?

Would-be exporters do not know how to get started. Financing is often difficult to find.

What advice is helpful for someone wanting to learn small-business management?

You should become an apprentice or work for a successful entrepreneur.

Select the characteristics of an intrapreneur.

a creative person who works within a corporation someone who uses company's resources to launch new products he or she generates profits by leveraging a firm's human financial and physical resources.

To keep track of daily sales, expenses, profits, inventory control, customer records, and payroll a small business needs a good

accounting system

Understanding where to locate your business, who your target market is, and how to reach them, can be accomplished through

an inexpensive market research study

What type of business relationship benefits both a trainee and a business owner and occurs when a trainee is hired to learn small-business management while assisting the owner in getting daily work done?

apprenticeship

David opened his own bicycle shop 30 years ago, and although he enjoyed his work, he needed more free time. When Josie requested to work as an apprentice, David was very willing. Before long Josie was able to run the store without any help. This is an example of how Blank______.

apprenticeships can benefit both the business owner and the apprentice

Among the hurdles small businesses must overcome in starting to operate globally are:

bureaucratic paperwork understanding cultural differences difficulty finding financing

A market consists of consumers with unsatisfied wants and needs who have both resources and the willingness to:

buy

A(n) ______ team is a group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make, and market a new product.

entrepreneurial

Some causes of small-business ______ include underpricing or overpricing goods or services, starting with too little capital, going into business without first learning something about the industry or market, and underestimating how much time it will take to build a market.

failure

All organizations require the following: Multiple select question.

planning information management capital

Daniel wanted to start his own small business. After spending his own money on marketing research, Daniel asked his friend Chase to be his accountant. They spent a few months writing a business plan, which then they presented to a bank. Daniel:

understands the steps needed to start a small business

Naomi invests in new businesses in exchange for partial ownership in those businesses. Naomi is a(n)

venture capitalist

After working for a large auto manufacturing company for over 20 years, Silvia decided to start her own auto accessory store. While facing new challenges every day, Silvia enjoys being free to manage her company as she desires. This example illustrates:

why people take the risks of entrepreneurship