Exam 6: Entrepreneurship and Small Business Ownership

Money used or needed to set up a new business is ________.

In the business plan,the exit strategy explains how and when the owner will close her business.

A corporation's first offering of shares to the public is called ________.

Small companies tend to differ from large ones because ________.

Which of the following is true about a small business?

Private individuals who put their own money into start-ups,with the goal of eventually selling their interest for a profit,are called ________.

Facilities that house small businesses and provide support services during the company's early growth phases are called angel investors.

The practice of engaging outside firms to handle either individual projects or entire business functions is called downsizing.

The start-up schedule section in a business plan would forecast its income,expenses,and cash flow for the first 3 years of business.

Outsourcing reduces opportunities for small businesses and entrepreneurs.

A car dealer in Ohio has the rights to sell trademarked automobiles manufactured by Armadillo Motors Inc.,which does not have a distribution network in Ohio.The car dealer purchases the automobiles from Armadillo Motors Inc.and then resells them in Ohio.Which of the following models does the dealer use?

Lifestyle businesses are small only because they are new and have ambitious plans to grow.

Which of the following statements is true about venture capitalists?

Compare and contrast business incubators with networks and support groups as sources of advice and support for entrepreneurs?

________ are centers that provide a small business with a wide array of support resources and services during its early growth phase.

From the perspective of the franchisee,list 3 advantages and 3 disadvantages of buying a franchise.

Andy,an entrepreneur,plans to open a bakery in his neighborhood.He realizes that there are no branded bakeries in the locality,even though there are a number of independent bakeries.He approaches Soft Bakes,an international bakery chain,and signs an agreement with them that gives him the right to open a bakery shop that uses Soft Bakes' name and management methods.In this scenario,which of the following business methods does Andy use?

Motivational collapse occurs when the would-be entrepreneur encounters one too many setbacks and simply doesn't have the drive to keep going.

Celera Inc.,a soap manufacturing firm based in Colorado,needs to raise capital to fund its product development plans.The firm decides to offer its shares of ownership to the public for the first time,and lists its securities on a public exchange.This is termed as ________.

Funding a business with credit cards or a personal line of credit is extremely risky.