CHAPTER 6 PART 3

Question 1

The business must be carried on independently, not under the management and supervision of an employer or other principal.

Answer 1

Independent action

Question 2

Individual who has the the skill and imagination to undertake to create new products according to the changing demands of the market.

Answer 2

Innovativeness

Question 3

The act or fact of doing something that involves danger or risk in order to achieve a goal.

Answer 3

Risk Taking

Question 4

The tendency to anticipate and act on future needs rather than reacting to events after they unfold. A proactive organization is one that adopts an opportunity-seeking perspective. Such organizations act in advance of shifting market demand and are often either the first to enter new markets or “fast followers” that improve on the initial efforts of first movers.

Answer 4

Proactiveness

Question 5

Tendency to intensely and directly challenge competitors rather than trying to avoid them.

Answer 5

Competitive aggressiveness

Question 6

Written document that describes the business idea and all the relevant internal and external elements involved in launching a new venture. It is usually an integration of functional plans in finance, marketing, manufacturing, and human resources. It serves as a road map for the entrepreneur.

Answer 6

Business Plan

Question 7

What is in a business plan outline?

Answer 7

Cover Page
Table of Contents
I. Executive Summary
II. Business Description
III. Marketing Plan
IV. Feasibility Analysis
V. Management Plan
VI. Product/Service Development Plan
VII. Financial Plan
References
Appendices