BUS 010 CH 6

A__________ is a written document that details the business idea, the target market and the business's competitive advantage, financial resources available for the business, and the qualification of the management.

Business plan

Which of the following best describes the difference between an intrapreneur and an entrepreneur?

Intrapreneurs work within existing corporations while entrepreneurs assume the risks of starting their own business

Which of the following will not help your small business succeed?

Services you perform are easily replicated by larger companies, such as online banking

Which of the following statements is characteristic of entrepreneurs?

They look at problems and see opportunities

One reason we have seen continued growth in home-based businesses is:

affordable computer and information technology makes it easier to compete.

________are private individuals who invest their own money in potentially hot new companies before these firms become larger, publicly traded companies

angel investor

A review of small business successes and failures indicates that the:

businesses with potential of high profit levels tend to be difficult to start and hard to keep going.

When seeking financial backing from a venture capitalist, a small business owner should realize that the venture capitalist will:

expect an ownership stake in the company in exchange for financial backing.

Small businesses:

deal with similar management issues that large companies face.

A good business plan will:

describe all aspects of the business, including product, the target market, the nature of the competition, any financial resources, and the owner's qualifications.

The Small Business Administration defines a small business as a firm that:

is independently owned but not dominant in its industry.

A market consists of potential buyers of a good or service. However, for a market to exist:

people must have unsatisfied wants and needs as well as a willingness and ability to buy.

Two key management functions that need particular attention when starting a business are:

planning and financing

Historically entrepreneurs in the U.S.

started many small firms that later became major corporations employing thousands of workers.

Bankers and potential investors are likely to read ___________ first.

the executive summary

Intrapreneurs make use of __________ to develop and launch new products and generate new profits.

their employer's existing human, financial, and physical resources

Small businesses are important to the U.S. economy because:

they create over 60% of new jobs each year and generate over 50% of the U.S. GDP

A firm or individual providing financial capital to small businesses in exchange for an ownership stake in the company is called a(n):

venture capitalist