Exam 6: Starting Your Own Business

Kayla is opening a home health care business that she knows will do well in her community based on prior research.Although she must repay borrowed funds,Kayla chooses to maintain complete control over the business without having to answer to investors or partners.

Explain the difference between debt financing and equity financing.

Many colleges and universities offer programs in entrepreneurship.

MATCHING Complete the following using the terms listed. -A person who identifies a business opportunity and allocates available resources to tap that market is a(n)_____.

________ are business organizations or groups of private individuals who invest in new or growing firms.

MATCHING Complete the following using the terms listed. -_____ is the initial funding needed to launch a new venture.

Internal locus of control involves the personal belief that you control your own destiny.

Equity financing may benefit an entrepreneur who possesses good ideas and skills,but has little or no money.

MATCHING Complete the following using the terms listed. -To secure _____,entrepreneurs borrow money from banks,finance companies,credit card companies,and family and friends.

Many entrepreneurs rely on personal savings or loans from business associates,family members,or even friends for start-up funds.

Louis works as an artist for a major textile company and created an innovation for producing designs.The company will implement Louis's idea as part of its ________ strategy.

MATCHING Complete the following using the terms listed. -A(n)_____ is an individual who lends money to new ventures in exchange for an equity stake.

Saul is the CEO of Summertime,Inc.He uses the resources of the firm to expand and diversify into winter sports areas.Saul would be classified as a(n)________.

Classic entrepreneurs start and run several businesses at a time.

Financial success ________.

The current outlook for becoming an entrepreneur is positive.

Which is NOT a guideline to consider when starting a business?

Steve Jobs,the late CEO of Apple,helped make the company the world's largest marketer of smartphones,and tablet computers.Steve Jobs' contributed to this achievement.:

MATCHING Complete the following using the terms listed. -_____ is a new funding source involving groups and individuals who donate small sums of money through the internet.

Which of the following statements regarding globalization and entrepreneurship is correct?