Exam 2 BUS - Chap 6

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

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

customer

____ refers to accepting the risk of starting and running a business.

Entrepreneurship

_____ are creative people who work as entrepreneurs within corporations.

Intrapreneurs

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, and A group of experienced people

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

Micropreneurs

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

Micropreneurs

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

_______ _________ are individuals or companies that invest in new businesses in exchange for partial ownership of those businesses.

Venture capitalists

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

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

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

a market

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

accounting system

In 2019, online retail sales reached over $365 _____ , or approximately ______ percent of all retail sales.

billion, 12

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

Mark recently started a small consulting firm. He is drafting 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). Mark is writing a(n)

business plan

All organizations require the following:

capital, information management

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

difficulty finding financing, understanding cultural differences, bureaucratic paperwork

An ______ assumes risk when deciding to start and run a business

entrepreneur

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

entrepreneur

Opportunity, profit, independence, and challenge are some reasons people are willing to take the risks of being a(n)

entrepreneur

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

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

Planning, adequate ________, keeping good business records, knowing your customers, and managing employees are what it takes to start and run a small business.

funding

the characteristics of an intrapreneur.

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

As a small business grows, it is _____ to oversee every detail, so entrepreneurs must hire, train and motivate good employees.

impossible

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

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

reasons why people become entrepreneurs.

independence, profit, and opportunity

Entrepreneurs must recognize that they need competent and motivated employees. Since they can't compete with larger firms' pay and benefits, they need to:

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

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

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

An inexpensive _______________ can help you determine where to locate your business, whom to select as your target market, and what is an effective strategy for reaching it.

marketing research study

Entrepreneurs start a business with the desire to grow the business and generate wealth while _____ start a business that will stay small, allowing them to have a balanced lifestyle and the ability to do the kind of work they want to do.

micropreneurs

A small business is defined as:

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

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

opportunities

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

team, managerial

Entrepreneurial attributes include:

tolerant of uncertainty, action-oriented, and highly energetic

Some common causes of small business failure include:

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

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

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