Ch 6 Vocabulary

Question 1

government agency that helps small business owners develop business plans and obtain financing and other support for their companies

Answer 1

Small Business Administration (SBA)

Question 2

money provided by large investors to finance new products and new businesses that have a good chance to be very profitable

Answer 2

venture capital

Question 3

money needed to pay for the current operating activities of a business

Answer 3

short-term financing

Question 4

amount of money needed to open a business

Answer 4

start-up financing

Question 5

an invention or creation that is brand new

Answer 5

innovation

Question 6

someone who takes a risk in starting a business to earn a profit

Answer 6

entrepreneur

Question 7

written description of the business idea and how it will be carried out, including all major business activities

Answer 7

business plan

Question 8

money needed for important resources of a business (such as land, buildings, and equipment) that will last for many years

Answer 8

long-term financing

Question 9

independent business with fewer than 500 eemployees

Answer 9

small business

Question 10

designed change that increases the usefulness of a product, service or process

Answer 10

improvement

Question 11

process of starting, organizing, managing and assuming the responsibility for a business

Answer 11

entrepreneurship

Question 12

group of retired local business people who volunteer their services to counsel/mentor new business owners

Answer 12

Service Corps of Retired Executives

Question 13

part of a business plan that discusses sales forecasts and location and number of potential patrons

Answer 13

customer analysis

Question 14

part of a business plan that discusses the industry characteristics and the condition of the economy

Answer 14

description of competition