Chapter 6

Which of the following are good ways to learn how to run your own business?

- Run a small business during your off hours - Talk to other business owners - Work for a successful entrepreneur

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

- bureaucratic paperwork - understanding cultural differences - difficulty finding financing

Learning from others is a useful way to avoid pitfalls when starting a small business. Some things you may be told would include:

- to hire a good lawyer and accountant - starting with enough money - that finding and retaining good workers is hard

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

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

What is the best definition of entrepreneurship?

Accepting the risk of starting and running a business

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

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

Business

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

Business plan

More personal___________service and the ability to respond quickly is an advantage for small businesses.

Customer

What is a good tactic for entrepreneurs to implement in order to keep a new company growing?

Delegate authority to employees

Individuals who possess such attributes as being self-directed, action-oriented, and tolerant of uncertainty can make excellent__________ like Bill Gates and Steve Jobs.

Entrepreneurs

Some causes of small-business Blank______ 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

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

Incubator graduates

are creative people who work as entrepreneurs within corporations.

Intapreneurs

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

Intern

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

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.

Microprenuers

Although there are many functions that are important in both the start-up and management phases of the business, what two functions are considered to be primary concerns?

Planning and financing

businesses are businesses that are independently owned and operated, are not dominant in their field of operation, and meet certain standards of size in terms of employees or annual receipts.

Small

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 in those businesses.

Venture capitalist

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

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

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?

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

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

Understanding where to locate your business, who your target market is, and how to reach them, can be accomplished through

an inexpensive market research study

David opened his own bicycle shop 30 years ago, and although he enjoyed his work, he needed more free time. When Josie requested to work as an apprentice, David was very willing. Before long Josie was able to run the store without any help. This is an example of how:

apprenticeships can benefit both the business owner and the apprentice

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

All organizations require the following:

capital information management Planning

Being self-directed, self-nurturing, action-oriented, and tolerant of uncertainty are all considered characteristics of 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

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

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

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

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

market

A small business is defined as

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

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

opportunities

Select reasons why people become entrepreneurs.

opportunity, profit, independence

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

A business plan is a detailed written statement that describes:

the target market the resources and qualifications of its owner(s)

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

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