Chapter 7

Question 1

Entrepreneurs

Answer 1

People who risk their time, money and other resources to start and manage a business

Question 2

Angel investors

Answer 2

Individuals who invest in start-up companies with high growth potential in exchange for a share of ownership

Question 3

Venture capital firms

Answer 3

Companies that invest in start-up businesses with high growth potential in exchange for a share of ownership.

Question 4

Market niche

Answer 4

A small segment of a market with fewer competitors than the market as a whole. Market niches tend to be quite attractive to small firms.

Question 5

Small Business Administration (SBA)

Answer 5

An agency of the federal government designed to maintain and strengthen the nation’s economy by aiding, counseling, assisting and protecting the interests of small businesses.

Question 6

Business plan

Answer 6

A formal document that describes a business concept, outlines core business objectives and details strategies and timelines for achieving those objectives.