Chapter 6 Principles of Business

Business owners who prefer to maintain their businesses at a manageable size are called: _________________________

micropreneurs

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

venture capitalist

A successful web-based strategy that helps a business spread the word about its website and products is called ____________.

affiliate marketing

The business plan will include ____________.

an analysis of the competition

Entrepreneurs seeking financial support from bankers and potential investors should: _____________________

create a detailed business plan to help the bankers and investors understand why this business will succeed

A creative person working within a corporation to launch new products and generate new profits is known as a: ______________________________

entrepreneur

A ________________ is a group of experienced professionals from different areas of business who join together to develop, make, and market a new product.

entrepreneurial team

Small businesses create about __________ percent of the new jobs in the United States.

60-80 (65)

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

Angle Investors

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

A ____________ is a valuable source of information regarding techniques to reduce a firm's exposure to risk.

Insurance Agent

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.

A ________ refers to people with unsatisfied wants and needs who are willing and able to buy a product or service.

Market

Which of the following government agencies is responsible for encouraging the development of small business?

Small Business Administration

One of the best places for young entrepreneurs to start shopping for an SBA loan is a: ___________________________

Small Business Development Center

The Small Business Administration sponsors volunteers from industry, trade associations, and education who offer advice to small business owners. These volunteers are called: _________________________________

The Service Corps of Retired Executives

Entrepreneurship is: _________________________________________________________________

accepting the risk of starting and running a business

Enterprise zones are specific geographic areas that: __________________________________

attract business investment by offering lower taxes and government support for development

A Small Business Investment Company (SBIC) is a: __________________________________

private investment company that is licensed by the SBA to make loans to small businesses