BUS Ch 7

__________is the process of funding ventures by raising money from a large number of investors via the Internet.

Crowdfunding

The nation of Rhodasia has the lowest entrepreneurship rate globally. A new government, headed by President Harold David Wengerd, aims to make the country's business environment more supportive toward burgeoning entrepreneurs. Which of the following measures should be taken to increase the entrepreneurship rate in Rhodasia?

Eliminating complex regulations placed on businesses

Lester owns a small law firm and has a 10-hour workday. Despite keeping long hours, he is open to working on weekends and holidays if required. He also responds to late-night calls from clients. Which of the following entrepreneurial characteristics is highlighted in the given scenario?

Energy

Which of the following is a drawback of buying a franchise?

If the national brand suffers, so does the business.

Mabel has a business idea of starting a store that would only sell hair products. Although she needs to raise capital to start her business, she does not want to share the ownership of her firm with anyone else. With a good appetite for risk, which of the following financing resources would be most ideal for her to start her business?

Personal credit cards

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

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

Vitalizing inner cities

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

According to small business experts, while raising start-up funds from friends and relatives, it is:

essential to keep the relationship as professional as possible.

People with an external locus of control:

feel buffeted by forces such as random luck.

Technological tools such as the Internet and email have:

made it easy for entrepreneurs to manage their business on the go

In low-income countries, a high percentage of entrepreneurs are considered__________.

necessity entrepreneurs

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

the organizational structure is in place.

Nestor wants to open a new event management company. Deveon, a multinational company, agrees to fund his business on the condition that Deveon be given 50% ownership in the company. In the given scenario, Deveon is most likely a(n) _____.

venture capital firm

In the context of entrepreneurs, which of the following statements is a difference between an internal locus of control and an external locus of control?

An internal locus of control involves personal responsibility, whereas an external locus of control does not.

In 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.

In the context of the U.S. economy, small businesses:

are normally the first to contract when times are tough

In the context of opportunities and threats, overhead costs for small businesses:

are often lower than big companies.

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