Chap 5 Quiz

T or F: Entrepreneurs, as a general group, dislike risk taking.

false

T or F: Multipreneurs are businesspeople who have tried a succession of entrepreneurial start-ups without finding an area in which they could be successful.

false

_____ is financing obtained from investment companies that specialize in financing small, high-growth companies and receive an ownership interest and a voice in management in return of their money.

venture capital

One form of business ownership involves _____, a form of business financing consisting of funds raised through the sale of stock.

Equity financing

T or F: Entrepreneurial activities are not influenced by changes in the external environment.

False

_____ do not own their own companies but apply their creativity, vision, and risk taking within a large corporation rather than starting a company of their own.

Intrapreneurs

IN YOUR OWN WORDS... Using at least 50 words, list and explain three advantages that small businesses have over larger, more complex companies.

Look through 5.6 for all advantages

The _____ is an agency of the federal government that offers both managerial and financial assistance to small businesses. 1. Council for Small Business 2. Small Business Administration 3. Business Incubator Agency 4. Business Welfare Administration 5. Federal Aid Program

Small Business Administration

_____ are privately owned and managed investment companies that are licensed by the Small Business Administration to provide long-term financing for small businesses.

Small Business Investment Companies (SBIC)

The first step in starting your own business is: 1. find an idea for a new product or service 2. choose a form of business organization 3. a self-assessment 4. to determine where the funding will come from 5. a business plan

a self-assessment

Emily Millou is planning to open a bed & breakfast inn. To borrow money from the bank, she should prepare a ______, a formal, written plan that discloses details about her product, markets, competition, and financial status.

business plan

Kathy Elliot has decided that she will start an Internet company to sell reliable used cars to customers nationwide. She has decided to use the sole proprietorship business format. Elliot's next step is to write a formal _____ before she applies for a business loan. 1. venture prospectus 2. business essay 3. market perspective 4. business plan 5. request for SBA publications

business plan

IN YOUR OWN WORDS... Using at least 50 words, list the three categories of entrepreneurs and explain the differences between them.

classic entrepreneur multipreneur intrapreneur

Andy Yocom saw prime advertising space on the flags on the golf course. He reasoned that any marketing messages would get prominent attention if they were placed on the flags since golfers focus on them when they take their shots. As a result Yocom used his own initiative and money to start Invision Golf Group Inc. Yocom is an example of a(n): 1. ultra capitalist 2. entrepreneur 3. capitalistic adventurer 4. franchiser 5. venture capitalist

entrepreneur

An entrepreneur is a person who _____ a business. 1. owns and operates 2. locates 3. manages 4. finances 5. works for

owns and operates

T or F: Entrepreneurs typically are innovators who start companies to pursue their ideas for a new product or service.

true

T or F: More than half of small businesses have between one and four employees.

true