Innovation and Entrepreneurship

A harvest plan may include:

1) Participating in a public offering of stock. 2) Selling it to a group of investors. 3) Selling the business to another firm.

Silicon Valley and Boston's 128 corridor are well known for:

1) Providing a basis to the area's economic vitality. 2) Providing a growing tax revenue base. 3) Generating new employment with entrepreneurial ventures.

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

1) Sufficient resources to get the business to a point where it's self-funding. 2) Develop an ability to generate consistent and growing sales. 3) Sustainable operating profit margin.

Which of the following are provided by the Economic Gardening Program in the U.S.?

1) Tax incentives 2) Financing for the venture 3) Support classes

Which of the following descriptions are characteristics of entrepreneurial firms?

1) The start-up is self-funded or closely funded. 2) The number of employees will not be expected to grow beyond 100. 3) The operation is designed in the image of the founder.

Which of the following statements are true regarding robber barons?

1) They dominated the industrial sectors. 2) They were responsible for some of the great abuses in business. 3) They took advantage of the economies of scale.

TRUE/FALSE: Men are the largest single group of new business founders.

FALSE

TRUE/FALSE: The Great Depression of the 1930s was harder on larger more mature businesses than on entrepreneurial businesses.

FALSE

TRUE/FALSE: Unlike entrepreneurial businesses, large organizations will regularly pursue smaller markets even if they do not believe the results will generate profit.

FALSE

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

Microloans

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

New business development

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

Robber barons

Which act officially organized the U.S. Small Business Administration (SBA)?

Small Business Act

TRUE/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

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

The business owner can be the boss.

Why do individuals decide to start a new business?

The desire to be one's own boss.

In what time period did the U.S. see a decline in large multinational firms and a rise of new opportunities for entrepreneurial businesses?

The late 1970s to early 1980s.

What significant, historical event marked the beginning of the decline of entrepreneurial businesses in the U.S.?

World War II

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

focused

The _________ 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 ceiling

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

In their book entitled The Millionaire Next Door, Thomas Stanley and William Danko point out that almost two-thirds of U.S. millionaires are

self-employed

The World Bank estimates that one of the strongest factors in the growth of any nation's GNP is the presence of entrepreneurial

small- and medium-sized enterprises.

Individuals or other organizations that may impact the success of the business for their own likelihood are known as

stakeholders

The United States Small Business Administration was organized to:

1) Aid, counsel, and protect the interests of small businesses. 2) Provide information at all levels of organizational development for entrepreneurial businesses. 3) Provide assistance at all levels of management for entrepreneurial businesses.

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

1) Business model 2) Customer problem 3) Product offering

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

1) Cities with base closings experienced increases in new businesses. 2) Cities with base closings experienced higher income growth. 3) Cities with base closings offered tax breaks and programs to support new business development.

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

1) Greater control over work-life balance 2) Frustration with the "glass-ceiling"

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

1) Inflexibility of large corporations in dealing with the needs of an individual's family and children. 2) Lack of promotion opportunities.

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

25-45 pages

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

50

Economies of scale is the condition that allows the long-run average cost to continue _______ as production _______.

Downward Increases

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.

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

art

Cash flow, management team, and competitive advantage are key criteria presented in the ________ that provide essential information to potential investors.

business plan

Large firms can sometimes do things more efficiently because of their ability to operate on a larger scale that can a small firm. This implies that large firms obtain _______ __ ______ in some industries.

economies of scale

The fact that Walmart can buy its advertising much cheaper on a per-unit basis than smaller retailers is an example of _______ __ ______.

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 to produce smaller volumes of beer. Anheuser-Busch has achieved

economies of scale.

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.

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

one-page pitch sheet

The business plan for a new entrepreneurial business is developed to serve as a guide to managing the business to provide potential investors with critical information to evaluate the business and to:

provide a self-evaluation.

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

quite different

The first category of start-up businesses are those formes as high-growth, often high-tech, ventures and are referred to as

venture capital-backed firms.