Entrepreneurship Ch 1 long homework section

What is the condition that allows the long-run average cost to continue downward as production increases? (Economies of scale)

Economies of scale

The fact that Walmart can buy its advertising much cheaper on a per-unit basis than a small retailer is an example of ________. (economies of scale)

economies of scale

A(n) ____________plan is a plan to exit the business that allows the investors to take advantage of growth. (harvest)

harvest

The first category of start-up businesses are those formed as high-growth, often high-tech, ventures and are referred to as ______. (venture capital-backed firms)

venture capital-backed firms

True or false: The Great Depression of the 1930s was harder on larger more mature businesses than on entrepreneurial businesses. (false)

False

What is the most important single factor in the business's success? (business owner)

The business owner

The European Union considers any business with fewer than _____ employees to be a small business. (50)

50

The U.S. government considers any business with fewer than _____ employees to be a small business. (500)

500

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

(Robber barons)

True or false: Robber barons were responsible for the collapse of small businesses in the 1880s. (false)

(false)

When was the initial development of the large industrial base of the United States? (1880s)

1880s

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.)

In cities with base closings, several new businesses rose up to fill the economic gap that had resulted from the closings.

Identify the reasons individuals can become frustrated with working in a large corporation. (Check all that apply.) Lack of promotion opportunities Inflexibility of large corporations in dealing with the needs of an individual's family and children

Lack of promotion opportunities Inflexibility of large corporations in dealing with the needs of an individual's family and children

______ are often for only a few dollars each and are made directly to entrepreneurs to encourage self-development in developing nations. (Microloans)

Microloans

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

Stakeholders

In what time period did the United States see a decline in large multinational firms and a rise of new opportunities for entrepreneurial businesses? (The late 1970s to early 1980s)

The late 1970s to early 1980s

Which of the following is true of entrepreneurial firms? (The structure of management is designed to take advantage of the skills of the founder or founders of a firm.)

The structure of management is designed to take advantage of the skills of the founder or founders of a firm.

Identify a characteristic of venture capital start-ups. (They are inherently risky operations whose growth is dependent on the exploitation of unknowns in the market.)

They are inherently risky operations whose growth is dependent on the exploitation of unknowns in the market.

Which of the following statements is true of venture capital start-ups? (They are often formed as high-tech ventures consisting of unique characteristics.)

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

Which of the following are characteristics of venture capital-backed firms? (Check all that apply.) They either start or grow quickly to employ a relatively large number of employees, They are formed with a harvest plan in place, They have a developed organizational structure.

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

Which of the following statements are true regarding robber barons? (Check all that apply.) (They took advantage of the economies of scale. They were responsible for some of the great abuses in business. They dominated the industrial sectors.)

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

A difference between entrepreneurial businesses and venture capital-backed firms is that _____. (entrepreneurial businesses' resources are more constrained than those of venture capital-backed businesses)

entrepreneurial businesses' resources are more constrained than those of venture capital-backed businesses

Thomas Stanley and William Danko, in their book The Millionaire Next Door, state that 75 percent of self-employed millionaires are _____. (entrepreneurs)

entrepreneurs

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)

glass

The process of forming and managing a new entrepreneurial business in a clear, sequential manner that is rich in practical application and grounded in research is the ______ part of entrepreneurial business development. (science)

science

A harvest plan may include: (Check all that apply.) selling it to a group of investors. selling the business to another firm. participating in a public offering of stock.

selling it to a group of investors. selling the business to another firm. participating in a public offering of stock.

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)

small- and medium-sized

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 Sustainable operating profit margin Develop an ability to generate consistent and growing sales)

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

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

(economies of scale)

It is much cheaper on a per-unit basis for Anheuser-Busch to produce large volumes of beer than it is for a small craft beer brewer to produce smaller volumes of beer. Anheuser-Busch has achieved of scale. economies

economies