Chapter 7

Angela runs a fashion boutique for women. Her customers can use an online editing software to create a rough image of the design and style they want Angela to use. The opportunity of _____ is highlighted in the given scenario.

using technology

Who among the following is the most appropriate person to start his or her own venture?

Gita, who has been an event manager for five years but discontinues her job as she wants to spend enough time with her one-year-old child

Which of the following is one of the largest crowdfunding sites in terms of traffic?

Gofundme.com

Which of the following statements is true of entrepreneurs who are tolerant of uncertainty?

They view the world in shades of gray.

David wants to open a new gymnasium with state-of-the-art equipment and qualified trainers. However, he can only afford either of the two. He decides to get the equipment first to start the gym. However, without qualified trainers to operate the equipment, David loses his customers and is forced to shut down the gym. Which of the following threats is most likely highlighted in the given scenario?

Too little money

A _____ is a formal document that describes a business concept, outlines core business objectives, and details strategies and timelines for achieving those objectives.

business plan

When buying a franchise, _____.

the initial purchase price can be steep

Buying an established business is a better plan than starting your business from scratch because:

the organizational structure is in place

Lowell runs a unisex salon and has six 10-hour workdays. If a customer requests him to stay open on the seventh day, he always obliges. He also provides home services if requested. Which entrepreneurial characteristic is most likely highlighted in the given scenario?

Energy

Melissa runs a small restaurant that specializes in serving continental cuisine. Every Sunday, she visits the farmers' market to buy the ingredients for her dishes. She handpicks each item to maintain the quality of her food. Which entrepreneurial characteristic is highlighted in the given scenario?

Self-reliance

In the context of funding options for small businesses, the _____ assists entrepreneurs by partially guaranteeing loans from local commercial lenders.

U.S. Small Business Administration

Which of the following funding options provides advice and guidance to start-up businesses along with the funds?

Venture capital

James is always keen on putting his ideas into action regardless of the outcome. He perfects his craft by trying out different possibilities. If he is dissatisfied with the result, he tries out a different method but does not give up. Which entrepreneurial characteristic is highlighted in the given scenario?

Vision

Which of the following is a powerful contribution made by small businesses to the U.S. economy?

Vitalizing inner cities

n the event that a large company has to downsize, the middle-aged workers who are laid off find it difficult to find new jobs. When such workers decide to start their own businesses, they:

are called necessity entrepreneurs

Small business start-ups are likely to find that getting commercial loans are:

difficult because lenders are reluctant to give loans to firms that do not have a track record

The primary reason people choose to become entrepreneurs is to:

earn more money

Mauve starts a business that specializes in procuring and selling antique items. Her business caters specifically to individuals who have high-income jobs and who like collecting unique artifacts. Mauve does not have much competition and can decide the prices of her products without any external influence. The opportunity of _____ is highlighted in the given scenario.

exploiting market niches

When entrepreneurs of small firms start serving a variety of roles, from CEO to customer service rep, such firms:

have lower overhead costs

According to the Global Entrepreneurship Monitor (GEM), the most effective way to evaluate entrepreneurship levels is by phase. A country's total early-phase entrepreneurship rate includes the:

percentage of adults who have been running their own business from three months to 3.5 years.