Entr 187 Ch.5

Which of the following is essential to the success of all start-ups?

Building trust in one's "story"

_____ refers to a situation when what is best for one's part-time business is different from what is best for his or her full-time employer.

Conflict of interest

Which of the following is an example of part-time business?

Dorothy, who works in her small bakery for less than 30 hours a week

In deciding whether to make the move from part-time to full time entrepreneurship, the key question is usually government regulations.

False

There are two key groups outside one's business with which one must deal—customers and investors.

False

Which of the following is most likely to be an advantage of a start-up?

It begins with a clean slate.

Which of the following best describes conflict of interest?

Jenson misses his deadlines at his full-time day job because he works late nights as a part-time music producer.

What would happen when a small business that is growing becomes too great to be handled alone by an individual owner?

Professional managers are hired to share the management load.

Intellectual property refers to original works like inventions, visual and performing art works, books, and computer programs.

True

Most entrepreneurs start out working part time on their new business.

True

Most small businesses—even part-time ones—need to have a website regardless of whether or not they use it for actual sales.

True

One of the ways to determine the financial situation of a business is by crafting a business plan.

True

The majority of part-time businesses are based in the home.

True

The more time and energy one spends preparing for a part-time business, the longer it takes to make a profit.

True

When pursuing a part-time entrepreneurship, there are usually two major questions: What kind of product or service do you want to offer and how do you want to organize your part-time business.

True

Which of the following is a disadvantage of buying a franchise?

You give up creative control and have greater reliance on your parent company's financial status.

The amount for which an asset would sell, less the costs of selling the asset is called:

net realizable value.

A start-up cannot:

provide positive cash flows immediately.

A new business that has begun from scratch is called a:

start-up.

The value of a franchise is determined by:

the rights granted.