Exam 18: Entrepreneurship and Small Business: Taking Risks Can Make Dreams Come True

Family businesses have many problems. The issue, who will run the business when the current family head leaves, is called a __________ problem.

Most businesses in the U.S. are controlled by:

Individuals and/or groups who make money by providing funds to new companies in exchange for an equity position and the hope of rising equity value are called __________.

Research shows that entrepreneurs are born, not made.

When an entrepreneur is forced to open their own business due to layoffs from their job and a low likelihood of replacing the job, inability to grow in their current career, or simply to put food on the table, they are engaged in __________ entrepreneurship.

What are the main causes of small business failures and what is the number one factor behind these causes?

A(n) __________ occurs when a firm moves faster than its competitors in spotting and exploiting a new market or previously unrecognized niche in the market.

When two or more people agree to contribute resources to start and operate a business, it is called a __________.

A college degree is necessary to be a successful entrepreneur.

A real indication of a problem with family owned businesses is that only three percent are expected to survive beyond the __________ generation.

Employees in large corporations who take significant risk and display entrepreneurial behavior are called __________.*

When an IPO is successful, the market bids up the share price, thus increasing the value of the original shares held by the venture capitalist and the entrepreneur.

John wants to start a new business, but he would like to keep the paperwork simple and avoid large legal fees. However, John does not want his personal property attached to the business. John should start his company as a __________.

Small business employs over __________ percent of America's private workers.*

What are the various means to fund new ventures? Define them and describe their advantages and disadvantage.

A partnership that consists of one general manager that manages the business and one or more partners that are not involved in the business is called a __________.

Intrapreneurship is the same as entrepreneurship.

An angel investor who invests in a new venture is providing __________.

Women owned businesses in the U.S. have declined in recent years.

The business structure that gives you the most control but that carries the greatest risk is the __________.