Exam 6: Entrepreneurship and New Ventures

The characteristics that are typically associated with entrepreneurs include all the following except

The following phrases-entrepreneurs are born, not made; entrepreneurs are gamblers; and entrepreneurs are young-capture three fundamental truths about entrepreneurs.

The ___ occurs when members of the controlling family of a business get into disagreements about work responsibilities, business strategy, operating approaches, finances, or other matters.

In a business plan, the executive summary contains the mission of the company, the details of the owners, and the legal form of the organization.

In the ___stage of the life cycle of entrepreneurial firms, the entrepreneur experiences the advantages of market success and financial stability, while also facing continuing challenges of meeting the needs for professional management skills.

___ implies that a business owner does nothave the skill-sets required in the essentials of business operations, including finance, purchasing, selling, or production.

A ___ consists of business partners who agree on the contribution of resources and skills to the new venture, and on the sharing of profits, losses, and management responsibilities.

In a business plan, the overview of the business purpose and the business model for making money is contained in the ___.

Vancouver-based Willowest, with manufacturing facilities in China, has become a recognized supplier of hospitality furnishing, including upholstered seating, linens, towels, and bathrobes. Consider that Rain Emily (Shi Yu) Zhang is interested in expanding the business globally but needs a large investor and she is willing to offer the investor a seat on Willowest's board of directors. What type of investor is Rain Emily (Shi Yu) looking for?

In a business plan outline, the ___ provides details of cash flow estimate for one to five years, break-even points, and phased investment capital.

A ___ is a legal entity that exists separate from its owners, protects the owners from personal liability, and gives the firm a life of its own beyond that of its owners.

A sole proprietorship is simple to start, run, and terminate.

Entrepreneurs have a tolerance for ambiguity.

"Sheng's Designs" is an architectural firm owned by four investors, but Sheng is the only one who handles the day-to-day business management of the firm. They share their profits, but their losses are restricted to the amount invested by each. This is an example of a ___.

All the following statements about family businesses are accurate except

Entrepreneurs typically come from families with strong corporate career backgrounds and seek independence from the corporate bureaucracies that dominated their parents.

Andrew Young, the founder of "The One Acre Fund," provides low-interest loans and agricultural education to East African farmers. This is an example of

Debt financing involves borrowing money from another person, a bank, or a financial institution and repaying it over time with interest.

Before starting on his new venture, Mike writes down the specifics of his ideas, the amount of money needed, and future business operations. Mike is involved in preparing a ___.

Which of the following are important issues in new venture creation?