Smart book 1

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

Economic Gardening

True or false: Every business in the Fortune 500 started out as a large corporation.

False

True or false: Men are the largest single group of new business founders.

False

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

False

True or false: Unlike entrepreneurial businesses, large organizations will regularly pursue smaller markets even if they do not believe the results will generate profits.

False

What are the critical elements that an entrepreneur must solve for success?

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

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

focused

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

stakeholders

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

25 to 45

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

500

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

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

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

Fortune

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

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.

The United States Small Business Administration was organized to

aid, counsel, and protect the interests of small businesses. provide assistance at all levels of management for entrepreneurial businesses. provide information at all levels of organizational development for entrepreneurial businesses.

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

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

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

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

The process of business development from scratch and the process followed by established businesses are ______.

quite different

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

Individuals or other organizations that may impact the success of a business and depend on the success of the business for their own livelihood are known as ______.

stakeholders

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

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

1880s

Identify the guidelines that should be ideally followed by entrepreneurs to create business plans for new entrepreneurial businesses.

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

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.

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.

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

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 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.

Identify the findings of the federal General Accounting Office's (GAO's) analysis of the impact of the closure of military bases. (Check all that apply.)

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.

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

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.

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

Entrepreneurs

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

Robber Barons

Large firms can obtain economies of ——— in some industries because of their ability to operate on a larger scale than a small firm.

Scale

According to the 2019 statistics from the United States Small Business Administration, 99.9 percent of all businesses in the United States are:

Small

Which of the following statements are true regarding robber barons?

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

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

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