Chapter 5&6

Question 1

Cooperative

Answer 1

A business owned and cotrolled by the people who use it, for mutual gain

Question 2

Why people take the entrepreneurial challenge (4)

Answer 2

1opportunity
2 profits
3 independence
4 challenge

Question 3

What does it take to be ab entrepreneur? (5)

Answer 3

1 self-directed, comfy of being your own boss and responsibility for failure and success

2 self-nurturing, believing in you own ideas

3 action-oriented

4 highly energetic, work hard

5 tolerant of uncertainty, take risk

Question 4

Challenges of working at home (5)

Answer 4

• getting new customers, difficult if you don’t have a retail storefront
• managing time
• keeping work and family task separate
• abiding by city ordinances, can attract a lot of traffic in neighborhood
• managing risk, risk homeowners insurance policy

Question 5

Affiliate marketing

Answer 5

Internet-based marketing strategy in which a business rewards individuals of businesses (affiliate) for each visitor or customer the affiliate sends to its website

Question 6

Angel investors

Answer 6

Private individuals who invest their own money in potentially hot new companies before they go public

Question 7

Acquisition

Answer 7

One company’s purchase of the property and obligations of another company