Chapter 6

Question 1

Entrepreneurship

Answer 1

Accepting the risk of starting and running a business.

Question 2

Intrapreneurs

Answer 2

Creative people who work as entrepreneurs within corporations.

Question 3

Micropreneurs

Answer 3

Entrepreneurs willing to accept the risk of starting and managing a business that remains small, lets them do the work they want to do, and offers them a balanced lifestyle.

Question 4

Enterprise Zones

Answer 4

Specific geographic areas to which governments try to attract private business investment by offering lower taxes and other government support.

Question 5

Incubators

Answer 5

Centers that offer new businesses low-cost offices with basic business services.

Question 6

Small business

Answer 6

A business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size (set by small business administration) in terms of employees or annual receipts.

Question 7

Business plan

Answer 7

A detailed written statement that describes the nature of the business, the target market, the advantages the business will have in relation to competition, and the resources and qualifications of the owners.

Question 8

Angel investors

Answer 8

Usually give support to start-ups at the initial moments (where risks of the start-ups failing and relatively high) and when most investors are not prepared to back them. In return they often take partial ownership equity.

Question 8

Venture capitalists

Answer 8

Individuals ot companies that invest in new busineses in exchange for partial ownership of those businesses.

Question 9

Sources of capital

Answer 9

Personal savings, family, business associates, banks and finance institutions, government agencies.

Question 10

Small business Administration

Answer 10

A U.S. government agency that advises and assists small businesses by providing management training and financial advice and loans.