Chapter 5

Question 1

Classic Entrepreneur

Answer 1

risk-takers who start their own business based on innovative ideas

Question 2

Micropreneur

Answer 2

start small and stay small

Question 3

Multipreneur

Answer 3

entrepreneurs who start a series of companies

Question 4

Intrapreneurs

Answer 4

entrepreneurs who don’t own their own business but apply their creativity, vision, and risk-taking within a large corporation

Question 5

The Kauffman Index of Start-Up Activity

Answer 5

early indicator of new entrepreneurship in the U.S.

Question 6

Ewing Marion Kauffman Foundation

Answer 6

best source to track US entrepreneurial growth activity

Question 7

Annual Survey of Entrepreneurs (ASE)

Answer 7

public-private partnership between the Ewing Marion Kauffman Foundation, US Census Bureau, & the Minority Business Development Agency

Question 8

Current Population Survey(CPS)

Answer 8

sample sizes of more than 900,000 observations

Question 9

Business Dynamics Statistics (BDS)

Answer 9

covers approximately 5 million businesses

Question 10

Established Small Business

Answer 10

have been in business for more than 5 years with at least 1, but less than 50 employees

Question 11

Business Plan

Answer 11

one of the most important steps in starting a business; determines failure or success

Question 12

Debt

Answer 12

borrowed funds that must be repaid with interest over a stated time period

Question 13

Equity

Answer 13

funds raised through the sale of stocks in the business

Question 14

Bootstrapping

Answer 14

funding the operation with your own resources

Question 15

Angel Investors

Answer 15

individual investors or groups of experienced investors who provide financing for start-up businesses by investing their own money often referred to as “seed capital”

Question 16

Venture Capital

Answer 16

financing obtained from venture capitalists, investment firms that specialize in financing small, high-growth companies

Question 17

Non-compete Clause

Answer 17

means that the owner of the company being sold may not be allowed to compete in the same industry as the acquired business for a certain amount of time

Question 18

Certified Public Accountant (CPA)

Answer 18

helps with financial record keeping, decision-making, and tax planning

Question 19

Attorney

Answer 19

provides legal advice & draws up legal documents & contracts

Question 20

Consultants

Answer 20

marketing, employee benefits, & insurance; as-needed basis

Question 21

Outside Directors

Answer 21

get advice from those who have business experience

Question 22

Catch-22

Answer 22

to grow you ned to hire more people, but making the shift form solo worker to boss can be stressful

Question 23

Export Trading Companies (ETCs)

Answer 23

buy goods at a discount from small businesses & resell them abroad

Question 24

Export Management Companies (EMCs)

Answer 24

act on a company’s behalf; handle all aspects of exporting, including finding customers, billing, shipping, & helping the company comply with foreign regulations

Question 25

New Markets Venture Capital Program

Answer 25

promotes economic development & job opportunities in low-income geographical areas

Question 26

SBICs

Answer 26

Small Business Investment Companies

Question 27

SCORE

Answer 27

Service Corps of Retired Executives

Question 28

ACE

Answer 28

Active Corps of Executives