Ch6 Entrepreneurship and Small Business

Question 1

entrepreneurs

Answer 1

people with vision, drive, and creativity who are willing to take the risk of starting and managing a business to make a profit or greatly changing the scope and direction of an existing company.

Question 2

intrapreneurs

Answer 2

entrepreneurs who apply their creativity, vision, and risk taking within large corporations rather than starting companies of their own.

Question 3

small business

Answer 3

a business that is independently managed, is owned by an individual or a small group of investors, is based locally, and is not a dominant company in its industry.

Question 4

business plan

Answer 4

a formal written statement that describes in detail the idea for a new business and how it will be carried out. It includes a general description of the product or service, an analysis of the market, and a financial plan.

Question 5

debt

Answer 5

a form of business financing consisting of borrowed funds that must be repaid with interest over a stated time period.

Question 6

equity

Answer 6

a form of business financing consisting of funds raised through the sale of stock (ownership) in a business.

Question 7

angel investors

Answer 7

individual investors or groups of experienced investors who provide funding for start-up businesses.

Question 8

Business Development Bank of Canada (BDC)

Answer 8

Bank that provides small and medium-sized businesses with flexible financing, affordable consulting services and venture capital.

Question 9

venture capital

Answer 9

financing obtained from investment companies that specialize in financing small, high-growth companies and receive an ownership interest and a voice in management in return for their money.