Ent Chapter 1

The European Union considers any business with fewer than _____ employees to be a small business.

50

Which of the following are ways entrepreneurial businesses can act as catalysts for societal change? (Check all that apply.)

Entrepreneurial businesses have an understanding of the local community. Entrepreneurial businesses are willing to pursue smaller markets ignored by large corporations.

According to the text, which of the following is an important driver of the economic success of a community?

New business development

Along with being properly financed and developing sustainable profit margins, in order to be successful, entrepreneurs must:

develop an effective sales generation model.

Economies of scale is the condition that allows the long-run average cost to continue _______ as production _______.

downward; increases

Large firms can sometimes do things more efficiently because of their ability to operate on a larger scale than can a small firm. This implies that large firms obtain ______ in some industries.

economies of scale

Unlike the business plan of a venture capital-backed business, the entrepreneurial business plan is developed as a _____.

guide for the running of the business. from 15 to 25

The business plan for a new entrepreneurial business is developed to serve as a guide to manage the business, to provide potential investors with critical information to evaluate the business, and to:

provide a self-evaluation

The Fortune 500 is published annually by Fortune magazine and documents the 500 largest corporations (by ______) in the United States?

sales

The World Bank estimates that one of the strongest factors in the growth of any nation's GNP is the presence of entrepreneurial _____ enterprises.

small- and medium-sized

In the context of businesses listed in Fortune 500, Henry Ford (Ford Motor Company), Steve Jobs (Apple), Ralph Lauren (fashion), and Sam Walton (Walmart) all started out as _____.

small-business owners

What program is growing across the United States to help start new entrepreneurial businesses in an area?

Economic Gardening

The U.S. government considers any business with fewer than _____ employees to be a small business.

500

When was the initial development of the large industrial base of the United States?

1880s

Which of the following are reasons why entrepreneurial businesses are successful? (Check all that apply.)

Fewer layers of management. Tend to be more focused than large corporations Free to place energy into satisfying the needs of customers

Identify a finding of the federal General Accounting Office's (GAO's) analysis of the impact of the closure of military bases.

In cities with base closings, several new businesses rose up to fill the economic gap that had resulted from the closings. Cities with base closings offered tax breaks and programs to support new business development. In cities with base closings, the areas around the bases had income growth higher than the national average.

include key suppliers, customers, and employees. These individuals are critical to the success of a business.

Stakeholders

What are the critical elements that an entrepreneur must solve for success? (Check all that apply.)

Sufficient resources to get the business to a point where it is self-funding Develop an ability to generate consistent and growing sales Sustainable operating profit margin

Which of the following statements is true of venture capital start-ups?

They are often formed as high-tech ventures consisting of unique characteristics.

Civic leaders often look to ______ as a means to promote economic strength for a community, region, or state.

entrepreneurs

The process of ______ a new business is unique and has developed into a popular area of study at colleges around the globe. (Check all that apply.)

initiating developing running

99.9 percent of all businesses in the United States are:

small

Identify the guidelines that should be ideally followed by entrepreneurs to create business plans for new entrepreneurial businesses. (Check all that apply.)

An entrepreneur should create an attractive, one-page pitch about the business while developing the business plan. An entrepreneur should understand that a business plan should be created in pieces with each piece fitting into a whole picture.

Which of the following are reasons for the recent growth in the number of women starting new businesses? (Check all that apply.)

Frustration with the glass ceiling Greater control over work-life balance

Who is associated not only with the success of the industrial base but also with the great abuses in business?

Robber barons

Which of the following descriptions are characteristics of entrepreneurial firms? (Check all that apply.)

The start-up is self-funded or closely funded. The operation is designed in the image of the founder. The number of employees will not be expected to grow beyond 100.

Which of the following statements are true regarding robber barons? (Check all that apply.)

They dominated the industrial sectors. They were responsible for some of the great abuses in business. They took advantage of the economies of scale.

Which of the following are characteristics of venture capital-backed firms? (Check all that apply.) Multiple select question.

They either start or grow quickly to employ a relatively large number of employees. They have a developed organizational structure. They are formed with a harvest plan in place

Which of the following are goals of the business plan for a new entrepreneurial business? (Check all that apply.)

To provide investors with necessary information To be a guide to managing the business To provide self-evaluation

True or false: The one-page pitch created by a new entrepreneur while developing a business plan should offer an effective starting point for every potential supplier, employee, or investor.

True

The success of entrepreneurial businesses occurs because they are simply more _____ than their larger corporate counterparts.

focused

Which periodical is published annually and documents the 500 largest corporations by sales in the United States?

fortune

Silicon Valley and Boston's 128 corridor are well known for: (Check all that apply.)

generating new employment with entrepreneurial ventures. providing a basis to the area's economic vitality. providing a growing tax revenue base.

the ............... ceiling refers to the fact that women and minorities may be hired by large firms but they experience limits placed on their advancement within the firm.

glass

According to the World Bank, the presence of entrepreneurial small- and medium-sized enterprises is one of the strongest factors in the growth of any nation's ______.

gross national product

A venture capital-backed business plan typically runs from _____ pages long.

25 to 45