Entr 187 CH.6

According to the U.S. Small Business Administration, small businesses generate _____ times the number of patents per employee than do big businesses.

36

The text defines an entrepreneur as:

a person who owns or starts an organization, such as a business.

_____ are the smallest full-time business.

Traditional small businesses

According to the BRIE model, _____ sets up a business as a firm.

Boundary

A buyout refers to starting a business from scratch.

False

A start-up can be kept small deliberately to limit the magnitude of possible losses.

True

Closing a business with no outstanding debts is referred to as a walkaway.

True

Which of the following terms is not one of the four steps in the successful entrepreneurial process?

Seek.

All entrepreneurs have at least four sets of resources: access to capital; their own skills and abilities; their own knowledge; and their network of friends and business associates.

True

A start-up usually can easily gain revolving credit from suppliers and financial institutions.

False

For small businesses, professional management is an issue of education, titles, and credentials.

False

One disadvantage of purchasing an existing business is that it requires more cash outlay than creating a start-up.

False

Founders of small businesses often find it very difficult to give up decision-making authority to family members.

True

Franchising a new business is one of the ways to business ownership.

True

One of the seven key strategies of the entrepreneurial way involves effectuation or an approach used to create alternatives in uncertain environments.

True

The three principles of reasoning which are absolutely critical in the process of effectual reasoning are: affordable loss, strategic partnerships, and leveraging contingencies.

True