test 3 part 5

Trends in U.S. small businesses show

a growing number owned by minorities.

_________ take ownership shares in a new venture in return for start-up funds.

angel investors

In _________ financing, the business owner borrows money as a loan that must be repaid.

debt

The two most common ways to finance a business are

debt and equity

Leela wants to raise money for her business. However, she does not want to give its ownership shares to outsiders. Which of the following ways of financing should Leela choose for her business?

Debt financing

When a new business is quick to capture a market niche before competitors, this is

first-mover advantage.

An individual is born an entrepreneur, not made.

False

_________ makes social entrepreneurship unique.

Commitment to solving social problems

A serial entrepreneur starts one business and runs it till the end of his or her career.

False

Which of the following personality traits and characteristics is most likely to be shared by entrepreneurs?

Self-confidence and self-reliance

Which of the following is true of classic entrepreneurs?

They are risk takers.

Research evidence links entrepreneurs with parents who were entrepreneurial and self-employed.

True

A venture capitalist who receives an ownership share in return for investing in a new business is providing _________ financing.

equity

Jake runs a small organization and is seeking advice from a legal advisor. His business is currently a sole proprietorship, but he is worried about liability issues. He wants to protect his assets. However, he does not want to incur additional costs or deal with the complexities associated with the other forms of businesses. In this case, the legal advisor's best advice to Jake would be to

form a limited liability corporation.

Failures of small business start-ups can most often be attributed to

lack of good management