Ch 5 Entrepreneurship and Starting a Small Business SmartBook...

It is extremely important to develop a(n) before going to a bank for a loan, because it shows that you are aware of who the target market is, who the competition is, how much money you need, and exactly how you intend to turn a profit.

Blank 1: business Blank 2: plan

are creative people who work as entrepreneurs within corporations.

Blank 1: Intrapreneurs

A good lawyer for a small business does not have to be expensive. Several prepaid legal offer documents and other services for a small annual fee.

Blank 1: plans

Phil invests in new businesses in exchange for partial ownership in those businesses. Phil is a(n) .

Blank 1: venture Blank 2: capitalist

Chris spent his own money on marketing research, and consulted his sister Kara, who is an accountant. They spent the next few months writing a business plan. Which of the following are some business functions Chris has addressed?

Knowing your customers Planning

All organizations require the following:

capital information management

A necessary and invaluable aid to entrepreneurs is a competent, experienced who knows and understands small business. This person can help with leases, contracts, partnership agreements, and protection against liabilities.

lawyer

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

opportunities

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

Blank 1: customer

Opportunity, profit, independence, and challenge are some reasons people are willing to take the risks of being a(n) .

Blank 1: entrepreneur

Many use their time, money, and energy to turn their passions into sustainable businesses. They are comfortable being their own bosses and are not afraid of failure.

Blank 1: entrepreneurs or micropreneurs

A(n) assumes risk when deciding to start and run a business.

Entrepreneur

______ refers to accepting the risk of starting and running a business.

Entrepreneurship

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

Blank 1: apprentice or intern

A(n) is hired to assist the owner of a small business while gaining experience.

Blank 1: apprentice or trainee

Fill in the blanks to complete the sentence. In 2018, online retail sales reached over $517 , or approximately percent of all retail sales.

Blank 1: billion Blank 2: 14

In 2018, online retail sales reached over $517 , or approximately percent of all retail sales.

Blank 1: billion Blank 2: 14

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(n) .

Blank 1: business Blank 2: plan

More personal service and the ability to respond quickly is an advantage for small businesses

Blank 1: customer

Local community college classes are a good place to start to learn about business and .

Blank 1: entrepreneurship

Becoming an apprentice, talking to other business owners, and working for a successful entrepreneur are all examples of effective ways to obtain for running your own business.

Blank 1: experience, information, knowledge, or skills

Planning, , keeping good business records, knowing your customers, and managing employees are what it takes to start and run a small business.

Blank 1: financing

Gaining financing, knowing how to get started in exporting, and navigating bureaucratic paperwork are major hurdles to consider when getting started in business.

Blank 1: global or international

Business are centers that offer businesses in the critical stage of early development low-cost offices and access to basic services such as accounting, legal advice, and secretarial help.

Blank 1: incubators

The best way to define a(n) is all consumers with unsatisfied wants and needs who have both resources and the willingness to buy.

Blank 1: 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.

Blank 1: micropreneurs

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

______ are creative people who work as entrepreneurs within corporations.

Intrapreneurs

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

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

______ want to maintain a balanced life style while doing the kind of work they want to do.

Micropreneurs

True or false: The principles of management are similar for a small neighborhood business and a giant global firm.

True

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

______ are individuals or companies that invest in new businesses in exchange for partial ownership in those businesses.

Venture capitalists

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.

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

a market

To keep track of daily sales, expenses, profits, inventory control, customer records, and payroll a small business needs a good

accounting system

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

A(n) ______ is 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).

business plan

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

Some causes of small-business ______ 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

Entrepreneurial attributes include:

highly energetic tolerant of uncertainty action-oriented

Fill in the blanks to complete the sentence. As a small business grows, it is to oversee every detail; entrepreneurs must train and motivate employees.

impossible

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

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:

manage customer records follow the daily sales and expenses

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

Entrepreneurs must recognize that they need competent and motivated employees. Since they can't compete with larger firms' pay and benefits, they need to:

provide more challenging opportunities to learn be respectful of employees' opinions delegate more often

Kayla wanted to open her own dress design business. She spent a few hours putting together a marketing plan, then selected an award-winning dress she designed and wore it to the meeting with the bank. The most likely reason she did not receive a loan was:

she did not develop a thorough business plan

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

Some common causes of small business failure include:

starting with too little capital no experience in that business or industry underpricing or overpricing goods or services

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

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

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 is free to manage her company as she desires. This example illustrates:

why people take the risks of entrepreneurship