BSAD Chapter 5 Quiz Review

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

debt; equity

The person who takes the risk of starting and managing a business to make a profit is called a(n):

entrepreneur

Once the business plan is finished, the next step is to:

find financing for the business

Once Arnold Patel had decided he wanted to quit working as a Web designer for a large advertising agency and go into some kind of business for himself, he did a self-assessment, which indicated that he had an entrepreneurial spirit. His next step will be to:

find the idea for his business

_____ is at the core of most business failures.

inadequate planning

Gord Larose and his friend David Allan worked in Ottawa at Nortel Networks, a giant telecommunications-equipment maker. One Friday afternoon, over a few beers in Larose's kitchen, they dreamed up a scheme for renting software over the Internet. Instead of quitting their jobs, they reported to work on Monday, explained their plan to their boss, and began working to make their idea a reality. Four years later, their idea has evolved into an important division of Nortel called Channelware. Larose and Allan are examples of:

intrapreneurs

A business plan: - describes in detail the idea for the new business and how it will be carried out - is used to persuade lenders and investors to finance the venture - may take many months to write - serves as the first operating plan for a new business - is accurately described by all of the above

is accurately described by all of the above

Many classic entrepreneurs are _____ who start small and plan to keep their business small.

micropreneurs

_____ are entrepreneurs who start a series of companies.

multipreneurs

An entrepreneur is a person who _____ a business.

owns and operates

A common use of business plans is to:

persuade lenders and investors to finance the venture

A well-written business plan should contain: - executive summary or company overview - a marketing plan - a vision and mission statement - a management plan - all of the above

all of the above

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

angel investors

The difference between the small business owner and the entrepreneur is that the entrepreneur: - manages the business - files taxes for the business - assumes the risk of the business - is responsible for the profits of the business - is accurately described by all of the above

assumes the risk of the business

All of the following are characteristics of an entrepreneurial personality EXCEPT: - the willingness to take risks - creativity - problem solving skills - a high energy level - the willingness to be a follower rather than a leader

the willingness to be a follower rather than a leader