Exam 7: Small Business Entrepreneurship: Economic Rocket Fuel

Although entrepreneurs enjoy independence from working for a boss, they must still meet the needs of their customers.

The primary reason many people become entrepreneurs is to:

Since they lack the financial resources to fund research and product development efforts, small businesses are seldom able to introduce new innovations into the marketplace.

Brianna wants to run her own business. She is adamant about putting her own personal touch in the business and does not want to be tied down to regulations. Which of the following courses of action should Brianna take?

Which of the following best describes venture capitalists?

Entrepreneurs often mention that the primary motivator for launching a new business is the opportunity to make more money.

_____ are companies that invest in start­up businesses with high growth potential in exchange for a share of ownership.

The desire for a higher level of challenge can motivate someone to become an entrepreneur.

What three factors explain the wide differences in entrepreneurship rates among countries? How do these factors help explain the relatively high rate of entrepreneurship in the United States?

What are the major funding options for small businesses? Which of these options is most likely to be used by the majority of start­ups?

The Global Entrepreneurship Monitor (GEM) shows that people living in high­ income countries tend to be much more willing to start their own businesses than people who live in low­income countries.

Three downsides to buying a franchise include high initial costs, the ongoing percent­of­sales royalty fees, and the franchise requirements that, in effect, reduce the owner's independence.

One advantage of buying a franchise is that the franchiser usually offers training, financial assistance, and a recognizable brand.

In light of the economic crisis, Phillip would find it advantageous to request venture capital funding for his business in the software sector.

Identify and describe the pros and cons of buying a franchise.

Perry is an entrepreneur who left a job with a larger company to start a gourmet pet food store called Bark Healthy LLC. As a small business owner, she is responsible for all aspects of the business including customer service and stocking the store shelves. She understands it will be difficult to compete with larger businesses but feels confident she can succeed. In this case, Perry is confident about success due to:

Which of the following does a business plan provide a small business?

Rob Baron owns a small sheet metal fabrication business that employs 23 workers. As a small business owner, one of the major advantages Rob will enjoy when competing against larger firms is a lesser burden of government regulations.

Identify and describe the pros and cons of starting a business from scratch.

Lois has considered the opinions of many consultants, friends, and family members about her new massage parlor business idea. Despite overwhelming negativity, Lois is certain of her abilities and knowledge on account of her many years of experience in this field. In this case, Lois displays the entrepreneurial characteristic of _____.