Chapter 7

_____ are individual investors or groups of experienced investors who provide funding for start-up businesses.

Angel investors

The person who takes the risk of starting and managing a business to make a profit is called a(n):

Entreprenuer

Unlike large corporations, sole proprietorships do not need a business plan.

False

Define intrapreneur

apply their creativity, vision, and risk taking within a large corporation rather than starting a company of their own

Define growth-oriented entrepreneur

business that has the ability to generate increased revenues and has a solid plan to continue growth into the future.

What is a trend that is changing the face of entrepreneurship and small business ownership?

entrepreneurial diversity

Define multipreneur

entrepreneurs that start a series of companies

A common use of business plans is to:

persuade lenders and investors to finance the venture

______ want their businesses to grow into a major corporation.

Growth-oriented entrepreneurs

_____ are entrepreneurs who start a series of companies.

Multipreneurs

Define entrepreneur

The person who takes the risk of starting and managing a business to make a profit

Entrepreneurs are people with vision, drive, and creativity, who are willing to take the risk of starting and managing a business to make a profit.

True

Many small businesses that sell their products internationally use the services of export management companies (EMCs).

True

Micropreneurs are entrepreneurs who start small and plan to stay small

True

One of the reasons small businesses continue to thrive in the United States is outsourcing.

True

One of the reasons why there has been a dramatic increase in the number of small business startups is rapidly changing technology.

True

Once small businesses hire employees, they can _____ to increase job satisfaction and retain their employees. - offer flexible working hours -provide employee benefit programs -share profits with employees -provide comfortable working conditions -do all of the above

all of the above

Define Small Business Asministration

a U.S. government agency designed to bolster and promote the economy by assisting the country's small businesses.

The difference between small business owners and entrepreneurs is that small business owners:

accept the status quo and take a short-term view of the future

Define business plan

formal written statement that describes in detail the ideas for a new business and how it will be carried out

Which of the following is NOT a reason why small business thrives in the United States?

guaranteed profits

Export management companies:

handle all aspects of exporting, for a percentage fee of the business

Which of the following elements does NOT typically appear in a well-prepared business plan?

names of all employees

Define outsourcing

obtain good from an outside or foreign supplier

Angel investors:

provide funding for start-up businesses

In the past few years, the federal government has cut back burdensome government regulations and paperwork to the point that they are almost non-existent for small business owners.

False