Ay Chapter6

incubators

centers that offer new businesses low-cost offices with basic business services

A comprehensive business plan will include cover letter,......,company background ,management team, financial plan, capital required, marketing plan, location analysis, manufacturing plan, and a appendix.

executive summary

Becoming an apprentice , talking to other business owners, and working for a successful entrepreneur are all examples of effective ways to obtain....for running your own business.

experience

ashland's banking system recently crashed. This eventually led to companies being unable to borrow money to run their businesses and employees needed to be terminated. These circumstances cut into consumer's purchasing power, causing a severe decline in the prices of goods and services, better known as ....

deflation

Kiva's better that the whole community benefits from an entrepreneur's desire to earn a profit reflects which concept?

invisible hand

in global markets today, most economies are ..

mixed

Gabby is motivated to work hard in a capitalistic society, because...

she wants to do well for herself

The Small Business Administration (SBA) is the U.S. government agency that advises and assists small businesses by:

-providing financial advice -providing loans -providing management training

Micropreneurs are willing to accept the risk of starting and managing a business that:

-remains -offers them a balanced lifestyle -lets them do the kind of work they want to do

It is possible to get started in business by working in a successful one to learn about it and then:

-suggesting the owner take a partial retirement so you can gradually take over -buying out the current owner all at once -offering to buy out the owner over time

Learning from others is a useful way to avoid pitfalls when starting a small business. Some things you may be told would include:

-that finding and retaining good workers is hard -starting with enough money -to hire a good lawyer and accountant

Many people eager to start a small business come up with an idea and begin discussing it professors, friends, and other businesspeople. At this stage the entrepreneur needs a business plan. A business plan is a detailed written statement that describes the nature of the.....

1. company background 2. financial plan 3. capital required 4. management team 5.executive summary 6. location analysis 7.appendix 8.marketing plan 9. manufacturing plan 10. cover letter

Small Business Administration (SBA)

A U.S. government agency that advises and assists small businesses by providing management training and financial advice and loans.

small business

A business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size (set by the Small Business Administration) in terms of employees or annual receipts.

business plan

A detailed written statement that describes the nature of the business, the target market, the advantages the business will have in relation to competition, and the resources and qualifications of the owner(s).

small business investment company (SBIC) program

A program through which private investment companies licensed by the Small Business Administration lend money to small businesses.

Entrepreneurship

Accepting the risk of starting and running a business.

Which key factors impact whether budding entrepreneurs around the world can start and own a business?

Access to financing, government involvement, freedom to start a business

Match the goals with the type of business person.

Entrepreneur-desire to grow the business and generate Micropreneur- desire to remain small and balance lifestyle with work

Wilson cities that one of the biggest mistakes he made when starting JCF was not taking it seriously enough, which led to some financial issues and "a big bill from the IRS". This mistake exemplifies which potential cause of small-business failure?

Forgetting about taxes, insurance , and other costs of doing business.

JCF Health and Fitness was born of wanting to give women a solution to a traditional gym setting. Which aspect of a successful business does this scenario illustrate?

Fulfilling a need

which of the following statements explains one of the reasons that people in the US take entrepreneurial challenge?

It's all about independence and the opportunity to share in the American dream.

enterprise zones

Specific geographic areas to which governments try to attract private business investment by offering lower taxes and other government support

service corps of retired executives (SCORE)

an SBA office with volunteers from industry, trade associations, and education who counsel small businesses at no cost (except for expenses)

A(n) .....is hired to assist the owner of a small business while gaining experience .

apprentice

Successful entrepreneurial teams..

bring a variety of talent to the businesss venture

A market consists of consumers with unsatisfied wants and needs who have both resources and the willingness to:

buy

Potential sources of...for an entrepreneur are personal savings and government agencies such as the Small Business Administration (SBA), the Farmers Home Administration, the Economic Development Authority, and the Minority Business Development Agency.

capital

Laila created a new piece of workout gear. She's calling it the Toned Tushie. Although she couldn't initially find potential investors, she secured a personal loan and borrowed additional money from her parents. Her drive to continue believing in her idea and to remain enthusiastic shows that Laila is

characteristically self-nurturing

A reason for the growth and success of home- based businesses is that:

computer technology has leveled the playing field

intrapreneurs

creative people who work as entrepreneurs within corporations

Why do many small businesses avoid doing globally?

financing is often difficult to find. Many people don't know how to get started and do not understand the cultural differences in foreign markets. The bureaucratic red tape is often overwhelming.

.......policy refers to the efforts of the federal government to keep the economy stable by increasing or decreasing taxes and/or government spending.

fiscal

Why are people willing to take the risks of entrepreneurship?

for entrepreneurs taking risks and business growth go in hand.Entrepreneurs take risks on a regular basis, no matter how big or small they may be. This is not to say that entrepreneurs take risks just for the sake of it successful risks are calculated and based on an underlying motivator.

What are some of the advantages small businesses have over large businesses in selling in global markets?

foreign buyers enjoy dealing with individuals rather than large corporation because 1:small companies provide a wider variety of suppliers and can chip products more quickly and 2: small companies give more personal service

John started his small business with only a few employees, but in a few years had twice as many. The community around his business also flourished, party helped by the new stream of money. This exemplifies:

how small businesses influence the economy

According to a recent study, offering low-cost offices with basic services to new businesses in the early stages of development results in an 87% success rate of ....graduates

incubator

Organizations like Kiva.org offer aspiring entrepreneurs in developing countries small loans to help them get their businesses started. These loans are called

microcredit

Todd Williamson and Jim Miranda started their business, Broad reach Sailing, as a way to earn a living doing something they love, Which of the following is not a reason why entrepreneurs like Todd And Jim are willing to take the risk of starting and running a new business?

more leisure time

Northeast City College received a government grant to create a business incubator. Once completed, Northeast City College's facility will offer

new businesses low-cost office space with basic business services.

which of the following strategies may have a net effect on inflation?

proportionately increasing wages and increasing prices

A business plan is probably the most important document a small-business owner will ever create. There are nine sections in the business plan outline shown in the chapter. Can you describe at least five of those sections now?

section1: executive summary (two to three page summary of the proposed venture) section2: company background ( describe company operations to date, potential legal considerations, and areas of risk and opportunity).section3: management team ( include and organization chart, job descriptions of listed positions, and detailed resumes of the current and proposed executives).section4: financial plan(provide five year projections for income, expenses,and funding sources)section5: capital required (indicate the amount of capital needed to commence or continue operations, and describe how these funds are to be used)

....businesses are businesses that are indecently owned and operated, are not dominant in their field of operation, and meet certain standards of size in terms of employees or annual receipts.

small

What are the advantages of entrepreneurial teams?

team members can combine creative skills with production and marketing skills right from the start. Entrepreneurial teams can also ensure more cooperation and coordination later among functions in the business.

James could also explore the possibilities of financing through a government agency that advises and assists small businesses. This organization is known as...

the SBA

Which of thence following US issues does entrepreneurship most directly affect?

the ability to create jobs for others

Elise recently quit her job at a well-known insurance company and started a home-based business preparing medical transcriptions for doctors. Based on recent statistics, she can expect.

the emergence of affordable technology will make it less challenging for her to compete with larger firms offering the same service.

Story of woman who decided to start a new type of business rather than a business is,ilar to others in her community. Her success as a mushroom producer benefited her family, her community, the other mushroom farmers she eventually trained and many others.This is an example of....

the invisible hand

As "global" trends become "local", and as we see more opportunities to complete in the global market,

the only industries that governments will want to own are the ones that are profitable

if the price of a product were to go down , which of the following will most likely happen?

the quantity demanded will increase

How does the government get the money to buy and own these major industries?

through taxes

which of the following are reasons a business should be managed ethically?

to avoid lawsuits to attract customers to maintain a good reputation

If a business owner is in need of financing, he/she might consider a(n).....,who would invest in the business for a partial ownership stake.

venture capitalist

Phil invests in new businesses in exchange for partial ownership in those. Phil is a ......

venture capitalist

After working for a large auto manufacturing company for over 20 years, Silvia decided to start her own auto accessory store. While facing new challenges every day, Silvia is free to manage her company as she desires. This example illustrates:

why people take the risks of entrepreneurship

Which of the following statements about the Federal Reserve Bank (the Fed) is most accurate?

The Fed manages the U.S. money supply and interest rates.

Entrepreneurial attributes includes:

-tolerant of uncertainty -action-oriented -highly energetic

Some common causes of small business failure include:

-underpricing or overpricing goods or services -starting with too little capital -no experience in that business or industry

Small companies started by entrepreneurs may grow into large corporations that employ thousands of people. Match the entrepreneurs below with the corporations they developed.

Amazon-Jeff Bezos Avon- David McConnell Kodak-George Eastman Facebook-Mark Zuckerberg Starbucks-Howard Schultz

......zones are specific geographic areas to which governments attract private business investment by offering lower taxes and other government support

Enterprise

venture capitalists

Individuals or companies that invest in new businesses in exchange for partial ownership of those businesses.

....use a company's existing resources to launch new products and generate new profits. They are the creative people who work as entrepreneurs within corporations.

Intrapreneurs

The chair of the Federal Reserve Bank spoke to the American public. The message she conveyed is that Fed economists are worried about inflation and believe the best course of action would be to slow the economy. Which of the following policies is the Fed most likely to pursue?

Restrict the money supply and increase interest rates

Todd an Jim quickly learned that running a sailing business required a lot more than just taking folks for boat rides in exchange for a few dollars. In order to succeed as entrepreneurs Todd and Jim had to be all of the following except:

Risk averse

.....unemployment refers to unemployment caused by the restructuring of firms or by mismatch between the skills of job seekers and the requirements of available jobs.

Structural

How do micropreneurs differ from other entrepreneurs?

While other entrepreneurs are committed to the quest for growth, micropreneurs know they can be happy even if their companies never appear on a list of top-ranked businesses.

After Hurricane Sandy devastated the area where Wilson ran his business. Wilson moved his outdoor program indoors, which prompted him to move to annual memberships. Why did he make this decision ?

Wilson's overall business expenses increased and he needed a way to cover the costs, which included investing in more marketing , equipment, space, and staff.

entrepreneurial team

a group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make, and market a new product

A(n)....is a detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competition, and the resources and qualifications of the owners(s).

business plan

It is extremely important to develop a ....before going to a bank for a loan, because it shows that you are aware of who the target market is, who the competition is, how much money you need, and exactly how you intend to turn a profit.

business plan

What is Kiva's approach to micro financing?

crowdfunding

........is a condition characterized by slowing price increases

disinflation

Micropreneurs

entrepreneurs willing to accept the risk of starting and managing the type of business that remains small, lets them do the kind of work they want to do, and offers them a balanced lifestyle

Kiva believes that the better way to help communities overcome poverty is by

lending money rather than giving donations

market

people with unsatisfied wants and needs who have both the resources and the willingness to buy

Wilson states, "Culture is important to me. Our culture is based on accountability , camaraderie, and results. I've moved from finding the best person for the job finding the best fit for our culture." Which attribute of a successful entrepreneur does this represent?

self-nurturing

What does the government do to promote entrepreneurship?

Make entrapse zones (specific geographic areas to which governments try to attract private business investment by offering lower taxes and other government support)