Chapter V: Entrepreneurship & Starting a Small Business

More personal ___ service and the ability to respond quickly is an advantage for small businesses.

customer

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

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

What is the best definition of entrepreneurship?

Accepting the risk of starting and running a business.

Which of these are centers that offer new businesses in the critical stage of early development low-cost offices with basic services such as accounting, legal advice, and secretarial help?

Business incubators

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

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

______ are creative people who work as entrepreneurs within corporations.

Intrapreneurs

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

True

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

Micropreneurs

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?

Planning Marketing Financing

______ are individuals or companies that invest in new businesses in exchange for partial ownership in those businesses.

Venture capitalists

Select the characteristics of an intrapreneur.

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

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

accounting system

Becoming a(n) ___ is one of the best ways to learn about how to run a business.

apprentice

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

In 2018, online retail sales reached over $517 ___ , or approximately ___ percent of all retail sales.

billion 14

Local community college classes are a good place to start to learn about starting your own ___.

business

Being self-directed, self-nurturing, action-oriented, and tolerant of uncertainty are all considered characteristics of a(n):

entrepreneur

Many ___ use their time, money, and energy to turn their passions into sustainable businesses. They are comfortable being their own bosses and are not afraid of failure.

entrepreneurs

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

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:

follow the daily sales and expenses manage customer records

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

All organizations require the following:

information management planning capital

A necessary and invaluable aid to entrepreneurs is a competent, experienced ___ who knows and understands small business. This person can help with leases, contracts, partnership agreements, and protection against liabilities.

lawyer

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

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

The best way to define a(n) ___ is all consumers with unsatisfied wants and needs who have both resources and the willingness to buy.

market

Select reasons why people become entrepreneurs.

opportunity profit independence

A good lawyer for a small business does not have to be expensive. Several prepaid legal ___ offer documents and other services for a small annual fee

plans

A good lawyer for a small business does not have to be expensive. Several prepaid legal ____ offer documents and other services for a small annual fee.

plans

Kayla wanted to open her own dress design business. She spent a few hours putting together a marketing plan, then selected an award-winning dress she designed and wore it to the meeting with the bank. The most likely reason she did not receive a loan was:

she did not develop a thorough business plan

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

Some common causes of small business failure include:

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