Chapter 5

Question 1

Entreprenuership

Answer 1

The process of creating and managing a business to achieve desired objectives.

Question 2

Small business

Answer 2

Any independently owned and operated business that is not dominant in its competitive area and does not employ more than 500 people.

Question 3

Small Business Administration (SBA)

Answer 3

An independent agency of the federal government that offers managerial and financial assistance to small businesses.

Question 4

Undercapitalization

Answer 4

The lack of funds to operate a business normally

Question 5

Business plan

Answer 5

A precise statement of the rationale for a business and a step-by-step explanation of how it will achieve its goals.

Question 6

Venture capitalists

Answer 6

Persons or organizations that agree to provide some funds for a new business in exchange for an ownership interest or stock.

Question 7

Franchise

Answer 7

A license to sell another’s products or to use another’s name in business, or both.

Question 8

Franchiser

Answer 8

The company that sells a franchise

Question 9

Franchisee

Answer 9

The purchaser of a franchise

Question 10

Intraoreneurs

Answer 10

Individuals in large firms who take responsibility for the development of innovations within the organizations.