Exam 6: Managing Small Business Start-Ups

The drawbacks of proprietorship include unlimited liability and difficulty in obtaining financing.

Entrepreneurs are able to deal easily with delays and exhibit high levels of patience, knowing that the results will be worth the wait.

__________ is the belief by individuals that their future is not within their control but rather is influenced by external forces.

People who have high achievement needs like to set their own goals, which are moderately difficult.

A(n) __________ is an unincorporated business owned by two or more.

Managers must tailor their planning, organizing, leading, and controlling to fit

An entrepreneur

Entrepreneurs in the optimizer category are rewarded by the personal satisfaction of being business owners.

Thirty-four percent of small businesses fail within two years of opening.

Continuity and limits on the owners' liability are two principle advantages of forming a corporation.

What is the fundamental difference between the suppliers of debt and equity financing?

Social entrepreneurs have a primary goal of improving society rather than maximizing profits.

Name three of the four ways entrepreneurs can become business owners.

At Stage 3 of growth for an entrepreneurial firm, managers often are hired to take over duties performed by the owner.

A franchise is a business opportunity that provides shared office space, shared secretarial assistance, management support services, and management advice to entrepreneurs.

What is tolerance for ambiguity? Why is it an important trait?

Before opening his own business, Tanaka was writing a report that details the specifics of his ideas and future business operations. This document is known as

__________ is the psychological characteristic that allows a person to be untroubled by disorder and uncertainty.

__________ means that people are motivated to excel and pick situations in which success is likely.

A(n) __________ has a legal life of its own.