Exam 16: Managing Small Business Start-Ups

The drawbacks) of proprietorship include:

Equity financing is when funds are invested in exchange for ownership in the company.

Small businesses, according to the Small Business Administration, employ more than 90 percent of the private workforce in the United States.

In 2012, which country had the largest percentage of individuals age 18 to 64 that were active in starting or managing a business?

A venture capital firm wants to invest in businesses with a high rate of return. In return, they will:

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

In the start-up stage of an entrepreneurial business, formal planning tends to be nonexistent except for the business plan.

Scenario - Holly and Trent While many others dreamed about owning their own business, Holly Gabrel decided to do something about it. Holly knew that being self-employed required long hours and hard work, but with the help of her husband, Trent, Holly was positive that the hours and the work would be rewarded. First, she and Trent developed a new concept in sunglasses that could be used by athletes better than the sunglasses now on the market. Holly and Trent obtained a patent on their invention, and began production and marketing. -After fully developing their new business idea, Holly and Trent recognize the need to develop a business plan. Typical business plans will include all of the following, except:

Dawn, the finance manager of a sporting goods manufacturing company, uses accounting records to track monthly operational budgets to ensure that the company's financial targets are being met. This is an important task in which stage of the managerial process?

A group of companies or individuals that invests money in new or expanding businesses for ownership and potential profits is known as:

The key problem, at the_________ stage of growth, is how to grow rapidly and finance that growth.

Celine has an unwavering belief in her new start-up company. She possesses intense focus and takes unconventional risks to make her new company successful. These examples most closely relate to which personality trait of entrepreneurs?

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

At the success stage of growth, a company's substantial financial gains may come at the cost of losing its advantages of small size, including flexibility and the entrepreneurial spirit.

The Small Business Association SBA) reports that small businesses create at least ________percent of America's new jobs.

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

An attractive innovation for entrepreneurs who want to start a business from scratch is to join a business incubator.

Name five of the ten characteristics of a successful business plan.

Entrepreneurs who aspire to start online businesses implement all the following steps except:

Marion is an entrepreneur. At this stage of his company's growth, his main concerns are do we have enough customers and money. What stage of growth is Marion's company in?