Chapter 1 Entrepreneurship

Large firms can obtain ___ of scale in some industries because of their ability to operate on a large scale then can a small farm

Economics of scale

True or False: The great depression of 1930s was harder on larger more mature businesses then entrepreneurial businesses

False

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

Glass

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

False

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: unlike entrepreneurial business, large corporations will regularly pursue small markets even if they do not even believe the results will generate profits

False

The World Bank estimates that one of the strongest factors in the growth of any nations GNP is the presence of entrepreneurial __ enterprises

Small - and medium- sized

Which act officially organize the United States small business administration (SBA)?

Small Business Act

Which significant, historical event marked the beginning of the decline of the entrepreneurial businesses in the United States

World War 2

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(n) ___ plan is a plan to exit the business that allows investors to take advantage of growth

Harvest

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

50

A venture capital back business plan typically runs from ___ pages long

25 to 45

The practice, example, and the skill of the founder is the ___ part of entrepreneurial business development

Art

Cash flow, management team, and competition advantage are key criteria presented in the __ planned that provide a sensual information to potential investors

Business

Recent trends indicate that larger corporations have been ___, well entrepreneurial businesses have been ___ rapidly

Downsizing; growing

Identify the reasons individuals can become frustrated with working in a large corporation

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

The process of forming and managing a new entrepreneurial business in a clear, sequential manner that is rich in particular application and grounded in research is the __ part of entrepreneurial business development

Science

In their book titled the millionaire next-door, Thomas Stanley and William Danko point out that almost 2/3 of United States millionaires are

Self-employed

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

New business development

A(n) __ is a unique document that clearly lays out the critical information about a new business idea that provides an effective starting point for every potential employee, investors, or supplier

One-page pitch sheet

Which of the following are important elements of a one page pitch for your business

Product offering customers problem business model

Silicon Valley and Boston 128 Corridor as well known for:

Providing a growing tax revenue base Providing a basis to the area's economic vitality Generating new employment with entrepreneurial ventures

The process of business development from scratch in the process following is established businesses are ___

Quite different

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

Robber Barons

The Fortune 500 is published annually by Fortune magazine and documents the 500 largest corporations by ____ in the United States

Sales

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

Stakeholders

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

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

The repayment rate on microloans is typically

99%

Which of the following need to be evaluated in order to provide potential investors with the critical information required when developing a business plan for a new entrepreneurial business

Competitive advantage Management team Cash flow

Which of the following are important elements of a one page pitch for your business

Customer problem Business model Product offering

Which of the following are reasons why entrepreneurial businesses are successful

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

___ are often for only a few dollars each and are made directly to entrepreneurs to encourage self employment in developing nations

Micro loans

Why do individuals decide to start a new business

The desire to be one's own boss

In what time period did the United States see a decline in the large multinational firms and a rise of new opportunities for entrepreneurial businesses

The late 1970s to early 1980s

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

They are often form as high tech ventures consisting of unique characteristics

True or False: starting a new business may allow individuals to meet demands in their lives in a way that large corporations are unwilling to do

True

The process of ___ I have a new business is unique and has developed into a popular area of study at colleges around the globe

initiating developing Running

What is the condition that allows the long run average cost to continue downwards as the production increases

Economic of scale

Which of the following need to be evaluated in order to provide potential investors with the critical information required when developing a business plan for a new entrepreneurial business

Cash flow Management team Competitive advantage

Which of the following statements are true regarding the closure of military bases in United States

Cities with base closings experience higher income growth Cities with bass closings experience increases in the new businesses Cities with base closings offered tax breaks and programs to support in a business development

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

Economic gardening

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.

Economics of scale

Which of the following are provided by the economic gardening program of United States

Support classes Tax incentives Financing for the Venture

What are the critical elements then 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 is self funding

Which of the following is a big advantage of starting one's business

The business owner can be the boss

Which of the following is true of entrepreneurial firms

The structure of management is designed to take it vantage of skills of the founder or the founders of a firm

Which of the following are characteristics of venture capital back firms

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 statements are true regarding robber Barons

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

Which of the following are goals of the business plan for a new entrepreneurial business

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

Along with being properly finance and developing some stainable profit margin's in order to be successful entrepreneurs must:

Develop an effective sale generation model

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

Develop an effective sales generation model

Which of the following are ways entrepreneurial businesses can act as catalysts for societal change

Entrepreneurial businesses are willing to pursue smaller market ignored by large corporations Entrepreneurial businesses have an understanding of a local community

A difference between entrepreneurial businesses and venture capital-backed firm is that

Entrepreneurial businesses' resources are more constrained than those ofof venture capital back businesses

Which of the following are reasons for the recent growth in the number of women starting new businesses?

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