BUSE 5
Miranda is a certified financial planner who has opened a business designed to help people with poor credit and financial problems get back on their feet. She charges a low fee for her services. What type of entrepreneur is Miranda?
A social entrepreneur
Why might a person buy a franchise rather than start a business?
Because it's a proven system of operation
__ are hotbeds for small start-up businesses and provide environmentally friendly products and services.
Green industry businesses
__ are employees who work in an entrepreneurial way within an organizational environment.
Intrapreneurs
Which of the following best describes a business plan?
It is a document that states the goals of the business as well as the plan for reaching those goals.
Which of the following best describes an enterprise zone?
It is a geographic area targeted for economic revitalization based on various criteria, such as its population, poverty rates, and amount of economic stress it is experiencing.
Which of the following is an advantage of buying a franchise?
It is a proven system of operation.
Which of the following best describes crowdfunding?
It is a way to generate donations for a start-up from individuals on websites and social networks.
Which of the following best describes the Small Business Administration (SBA)?
It is an independent agency of the U.S. government that offers assistance to small businesses that meet certain criteria.
Which of the following best describes an entrepreneur?
It is an individual who assumes the risk of creating, organizing, and operating a business.
The following are new companies in different situations. Which business has the greatest risk of failure?
Jelly Works faces an early surge in sales with insufficient inventory on hand.
__ tend to look for flexibility in work hours or travel schedules.
Lifestyle entrepreneurs
Which of the following is the best example of entrepreneurship?
Lily, a grocery store owner, decides to open an online grocery store that gets orders through Facebook.
The following are new companies in different situations. Which business has the greatest risk of failure?
March Company offers extremely lenient payment terms to its customers to attract more of them.
__ have no aspirations of growing large or hiring hundreds or thousands of employees.
Micropreneurs
Which of the following is most likely to put a business at risk of failure?
Poor fiscal management
__ poses the greatest threat of failure to a new company.
Poor fiscal management
Juanita has always wanted to start her own bakery. However, she needs funds to do so and hasn't established a long credit history because she is only 22 years old. Which of the following sources of funding is Juanita most likely going to be able to tap to open her new bakery?
Private loans from her family and friends
The ___ is an independent agency of the U.S. government that offers legal and operational assistance, as well as other services, to small businesses.
Small Business Administration (SBA)
Which of the following statements is FALSE regarding small businesses in the U.S.?
Small businesses are typically dominant in their field of operation.
Small businesses fulfill many roles in American society. Which of the following would NOT be one of those roles?
Small businesses offer limited opportunities for minorities and women.
__ are entrepreneurs with a social mission.
Social entrepreneurs
Which of the following is true of gazelle companies?
These companies are created by growth entrepreneurs.
Which of the following best describes intrapreneurs?
They are employees who work in an entrepreneurial way within an organizational environment.
Which of the following is true of small businesses?
They are major employers.
Which of the following is true of small businesses?
They create more patents per employee than do large firms.
Which of the following is a trait of successful entrepreneurs?
They innovate to realize a vision.
Which of the following is true of business incubators?
They offer administrative services, technical, and other support to start-up businesses.
What do entrepreneurs with little capital most often do to finance their businesses?
They use bootstrap financing.
__ invest in businesses as well as play an active role in managing them.
Venture capitalists
Which of the following is independently owned and operated and is not dominant in its field of operation?
a small business
Micropreneurs are different from other types of entrepreneurs because they ___
are satisfied with keeping their businesses small
Amit is starting his art studio with very little capital. This is an example of __
bootstrap financing
Organizations that support start-up businesses by offering administrative services, technical support, business networking and sources of financing are called ___
business incubators
A(n) _______s well as the plan for reaching those goals.
business plan
Jim, a businessman, wishes to start a chain of grocery stores. However, all the banks he approaches turn him down due to a lack of direction in his ideas. Finally, Sheila, a bank manager, asks Jim to draft a formal document that outlines the nature of his business, its short-term and long-term goals, and the potential for its success. Sheila advises him to draft this document and approach the bank once more. The formal document that Jim is advised to draft is known as a(n) __
business plan
In order to finance the development of their new video game, Jack and his wife solicited funds in the form of "donations" from the Internet community with only a promise of free access to the game when it was launched. What type of financing is this? What type of financing is this?
crowdfunding
___ is/are a way to generate donations for a start-up from individuals on websites and social networks.
crowdfunding
Which of the following is NOT a reason to start a business?
desire to work for someone
John is exploring the idea of buying a local coffee shop. When he is conducting a reasonable investigation into the business's history, operating and financial records, contracts, and the valuation of the business, he is engaging in __
due diligence
A(n) ___ is a geographic area targeted for economic revitalization based on various criteria, such as its population, poverty rates, and amount of economic stress it is experiencing.
enterprise zone
A(n) ____ is a geographic area targeted for economic revitalization, based on various criteria, such as its population, poverty rates, and amount of economic stress it is experiencing.
enterprise zone
A(n) __ is an individual who assumes the risk of creating, organizing, and operating a business.
entrepreneur
Financial awards offered by federal and state governments are called __
grants
Your roommate is seriously considering stating a small business. He has read some scary statistics about small business failures and is wondering what may be some common reasons why small businesses fail. You should tell him that all of these are common reasons that he should watch out for EXCEPT __
high revenues
Nebulous Works, a software manufacturing company, encourages its employees to generate ideas for the development of new software applications. The best ideas are selected and worked upon for the generation of new products in the future. The employees who contribute ideas that will enhance the company's existing products are __
intrapreneurs
Venture capitalists __
invest in businesses as well as play an active role in managing them
Marie, a pastry chef, wants to start a business with flexible working hours so that she can tend to other responsibilities at home. She decides to take orders over the phone and supply chocolates to various retail stores. Marie best illustrates a(n) __
lifestyle entrepreneur
Colette has a small freelance business writing online content for publishers of high school and college textbooks. She has successfully operated this business for 6 years but has no intention to hire employees or grow the business into more than a one-person operation. Collette could BEST be described as a/an ___
micropreneur
Goldfish is a very popular but rather small Chinese fast-food restaurant in Wisconsin. The people living in the neighborhood are loyal customers and appreciate the high standards of quality and service offered at the restaurant. On being asked if he had any plans on expanding his business, Ming Soon, the owner of Goldfish, replied that he had no such aspirations and was satisfied with the way things were. Ming Soon best exemplifies a __
micropreneur
Business incubators __
offer administrative services, technical, and other support to start-up businesses
Which of the following elements would NOT be included in the marketing plan section of a company's business plan?
risk evaluation
In addition to an initial investment, franchisees are generally required to pay a monthly fee based on sales or profits to the franchisor. This fee is referred to as the _____ fee.
royalty
A(n) ____ is independently owned and operated and is not dominant in its field of operation.
small business
As an entrepreneur, Indra always creates innovative solutions designed to solve social problems. Indra can be described as which of these?
social entrepreneur
Which of the following is NOT a disadvantage of owning a franchise?
strength in numbers
Keisha is thinking about starting her own software development company. Having a business plan will help Keisha __
think through some of the more difficult aspects of the business up front