Exam 6: Entrepreneurship and New Ventures

Aisha has been successfully running a salon for over a year. She decided to use her profits and expand her business by selling her homemade organic hair care products. This involved miscellaneous costs that exhausted her funds, and she had to file for bankruptcy. Which of the following is most likely the main reason for Aisha's failure?

Give the outline of a sample business plan.

Entrepreneurs have a tolerance for ambiguity.

When establishing a corporation, a partnership agreement must be made.

____ is risk-taking behavior that results in new opportunities.s

A first-mover advantage comes from being first to exploit a ____ or enter a market.

_____ takes place because other employment options don't exist.

Which of the following forms of ownership holds the business owner personally liable for business debts and claims?

Habib, who owns a popular restaurant, plans to expand his business. After reading favorable reviews, he decides to invest in an acquisition unaware that it is a dummy corporation. This fraud leads to significant financial losses for him, and he is forced to shut down his business. Which of the following is most likely to be the main reason for the failure of Habib's business?

Having a succession plan helps avoid a succession problem.

A _____, common among professionals such as accountants and attorneys, limits the liability of one partner for the negligence of another.

The main characteristic of _____ entrepreneurs is that they start and run new ventures over and over again, moving from one interest and opportunity to the next.

_____ involves giving ownership shares in the business to outside investors in return for their cash investments.

In a business plan, the size of the market, competitor strengths and weaknesses, and five-year sales goals are contained in the _____.

A first-mover advantage comes from being first to exploit a niche or enter a market.

_____ implies that a business owner does not have the skill-sets required in the essentials of business operations, including finance, purchasing, selling, or production.

Business incubators are also called business accelerators.

Nailah had to quit her job to run her mother's bookstore when her mother passed away. The store was earning good profits and so she decided to open a new branch in another state. What kind of a business does Nailah own?

A startup is a new venture that the entrepreneur is hoping will take shape and prove successful as things move forward.

Growing too fast is one of the reasons small businesses fail.