Bus100 Types of businesses

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

All types of businesses need a business plan

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

Angel investors

_____ are entrepreneurs who apply their creativity, vision, and risk taking within a large corporation rather than starting a company of their own. They enjoy a high degree of autonomy while receiving a regular salary and financial backing from their employer

Intrapreneurs

List three advantages that small businesses have over larger, more complex companies.

The text lists the following four: (1) greater flexibility, (2) more efficient operation, (3) greater ability to service specialized markets, and (4) more personal service.

The two sources for debt financing are angel investors and venture capitalists.

Those are the two sources of equity financing

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

The difference between the small business owner and the entrepreneur is that the entrepreneur

assumes the risk of the business

After graduating from college, Joseph Tantillo decided to start a retail Web site that specializes in personalized Greek apparel. To fund his Web site, he borrowed money from his parents (who expect to be repaid with interest). In other words, he used _____ financing.

debt

The two forms of business financing are _____ (borrowed funds) and _____ (ownership funds).

debt; equity

Venture capital

is financing obtained from investment firms that specialize in financing small, high-growth companies

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

true

List four common causes for business failure

Economic factors Financial causes Lack of experience Personal reasons

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

names of all employees

Who provides the start-up financing for the majority of new small businesses?

the business owner and his or her family and friends