Entrepreneurship: Management
If an entrepreneur were considering a new business, which of the following would be a DESIRABLE characteristic of the industry being considered?
The new company will sell a newly patented invention that is not yet well known but is expected to dominate the market. Successful entrepreneurs excel at discovering whole new markets. They can either transfer a product or service that is well established in one geographic market to a second market or they can create entirely new industries.
After graduation John and his friends plan on starting a company. While they think their idea will take off, they should plan to have ____ of capital on hand just in case they do not have a profit immediately.
6-12 months Most experts say that a new business should have enough capital to operate for at least six months without earning a profit; some recommend a new business should have enough capital to last a year.
Jay wants to start a new business. With which of the following methods of starting a new business will he pay a share of the income from the business in return for the use of such things as trademarks and business formulas?
Franchising Entrepreneurs can own and manage a local franchise, which operate under licenses issued by parent companies.
David has ambitions to be a small business owner after graduation. He knows that small businesses sometimes fail and is trying to mitigate some of these factors. What issue should David focus on in order to reduce the failure rate of his small business?
Managerial inexperience One factor that contributes to the failure rate of small businesses is managerial incompetence or inexperience. The other three factors are neglect, weak control systems, and insufficient capital.
In which of the following industries are small businesses typically poorer performers than large businesses?
Manufacturing A good deal of money is needed to start a manufacturing business for investment in the equipment, energy, and raw materials necessary. This makes it harder for small businesses to succeed in manufacturing.
Kristina is an entrepreneur who is looking to launch a fine jewelry line; however, in order to do so she is hoping to get some funding. What would be the first source that she would try to get funding from?
Personal financial resources Personal financial resources, which include money borrowed from friends and relatives, account for over two-thirds of all money invested in new small businesses.
In which of the following ventures would a small business operator be most effective?
Services Services are the fastest-growing segment of entrepreneurship because they do not require a lot of resources.
Jane's Candy Shack is in danger of failing. She needs some major consulting help but she has limited financial resources. She contacts the SBA. She will most likely get help from the
Small Business Development Center (SBDC) SBDCs consolidate information from various institutions, such as technical and professional schools, and make this knowledge available to new and existing small businesses.
Jane's Candy Shack has ineffective advertising. Where should she go for help with a promotion program?
Small Business Institute At the SBI, students, working under the guidance of professors of business administration, help small-business owners solve specific problems
An entrepreneur looking to enter the manufacturing industry is more likely to fail due to: a) size of initial capital investment b) economies of scale c) labor requirements d) market saturation e) all of these
e) all of these A good deal of money is usually needed to start a manufacturing business due to the investment required in equipment, energy, and raw materials. Large businesses have the advantage of the economies of scale, as well as a larger number of employees and market saturation.
