Learn Smart - Chapter 1

The success of entrepreneurial businesses occur because they are simply more ___ than their larger corporate counterparts

focused

Recent trends indicate that larger corporations have been ___, while entrepreneurial business have been ___ rapidly

downsizing ; growing

Economies of scale is the condition that allows the long-run average cost to contine ___ as production ___

downward ; increases

Which of the following are reasons for the recent growth in the number of women starting new businesses?

frustration with the glass ceiling, and greater control over work-life balance

A(n) ___ plan is a plan to exit the business that allows the investors to take advantage of growth

harvest

The Fortune 500 is published by Fortune magazine and documents the 500 largest corporations by ___ in the US

sales

Which of the following is true about entrepreneurial firms?

the structure of management is designed to take advantage of the skills of the founder or founders of a firm

Which of the following are characteristics of venture capital-backed firms?

they either start or grow quickly to employ a relatively large number of employees, they are formed with a harvest plan, and they have a developed organizational structure

A venture capital-backed business plan typically runs from ___ pages long

25-45

Large firms can sometimes do things more efficiently because of their ability to operate on a larger scale than can a small firm. This implies that large firms obtain ___ in some industries

economies of scale

Unlike the business plan of a venture capital-backed business, the entrepreneurial business plan is developed as a

guide for the running of the business

___ are often for aonly a few dollars each and are made directly to enrrepreneurs to encouage self-development in developing nations

microloans

The business plan for a new entrepreneurial business is developed to serve as a guide to manage the business to provide potential investors with critical information to evaluate the business and to:

provide a self-evaluation

The US Small Business Administration was organized for:

provide assistance at all levels of management, aid, counsel and protect the interest of small businesses, and provide info at all levels of organizational development

The process of ___ a new business is uniqure and has developed into a popular area of study at colleges around the globe

running, developing, and initiating

The process of forming and managing a new entrepreneurial business in a clear manner that is rich in practical application and grounded research in the ___ part of entrepreneurial business development

science

The world bank estimates that one of the strongest facts in the growth of any nations GNP is the presence of entrepreneurial ___ enterprises

small and medium-sized

Which of the following are reasons why entrepreneurial businesses are successful?

tend to be more focused than larger corporations, fewer layers of management, and free to place energy into satisfying the needs of customers

The fact that Walmart can buy its advertising much cheaper on per-unit basis than a small retailer is an example of

economies of scale

What periodical is published annually and documents the 500 largest corporations by sales in the US?

Fortune

___ include key suppliers, customers, and employees. These individuals are critical to the success of a business.

Stakeholders

What are the critical elements that an entrepreneur must solve for success?

Sufficient resources to get the business to a point where it is self-funding, developing an ability to generate consistent and growing sales, and sustainable operating profit margin.

Which of the following descriptions are characteristics of entrepreneurial firms?

The number of employees will not be expected to grow over 100 people, the start-up is self-funded or closely funded, and the operation is designed in the image of the founder