Ch. 6: Managing Small Business Start-Ups

Question 1

5 Characteristics of Small Business Owners

Answer 1

1. idealist: likes the idea; creative
2. optimizer: business owner
3. hard worker: long hours for expansion
4. sustainer: work-life balance
5. juggler: handle everything

Question 2

2 Results of Entrepreneurship

Answer 2

1. job creation

2. innovation

Question 3

6 Traits of Entrepreneurs

Answer 3

1. autonomy
2. high energy
3. power and influence
4. need to achieve
5. high confidence
6. entrepreneurial struggle

Question 4

3 types of legal structures

Answer 4

1. sole proprietorship: unincorporated business owned by an individual
2. partnership: unincorporated business owned by 2+
3. corporation: artificial entity created by the state and existing apart from the owner

Question 5

6 Reasons Start-Ups Fail

Answer 5

1. poor mgmt.
2. over expansion
3. sloppy accounting
4. mediocre operations
5. no website
6. fear of firing

Question 6

4 Tactics for Becoming a Business Owner

Answer 6

1. start a new business
2. buy a business
3. buy a franchise
4. participate in a business incubator

Question 7

5 Stages of Growth

Answer 7

1. startup: pivoting strategic direction
2. survival: focus on finances
3. success: stability
   4: takeoff: future growth?
4. resource maturity