Chapter 6

Question 1

Accepting the risk of starting and running a business.

Answer 1

Entrepreneur

Question 2

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

Answer 2

Enterprise Zones

Question 3

Offer new businesses low-cost offices with basic services (like administrative help, utilities, etc.)

Answer 3

Incubators

Question 4

Independently owned and operated, not dominant in its field of operation and meets certain standards of size.

Answer 4

Small Business

Question 5

Individuals or companies that invest in new businesses in exchange for partial ownership.

Answer 5

Venture Capitalists

Question 6

Consumers with unsatisfied wants and needs who have both resources and willingness to buy.

Answer 6

Market

Question 7

Factors for Success in entrepreneurs

Answer 7

Self-directed, tolerance of uncertainty, self-

motivated, highly energetic

Question 8

Advantages of home based businesses

Answer 8

Ability to Start immediately
Minimal start up capitol
No rent
Comfortable conditions
No commuting

Question 9

Disadvantages of home based businesses

Answer 9

Getting new customers
Managing time
Not separating work and family

Question 10

Main areas in a business plan

Answer 10

Written report describing nature of the business, target market, advantages to owners resources, and qualifications

Question 11

Individuals that invest in new businesses

Answer 11

Venture Capitalists