Entrepreneurship & Small-Business Ownership

Question 1

Small Business

Answer 1

A company that is independently owned and operated, is not dominant in its field, and employs fewer than 500 people

Question 2

Entrepreneurial Spirit

Answer 2

The positive, forward-thinking desire to create profitable, sustainable business enterprises

Question 3

Business Plan

Answer 3

A document that summarizes a proposed business venture, goals, and plans for achieving those goals

Question 4

Business Incubators

Answer 4

Facilities that house small businesses and provide support services during the company’s early growth phases

Question 5

Seed Money

Answer 5

The first infusion of capital used to get a business started

Question 6

Micro Lenders

Answer 6

Organizations, often not-for-profit, that lend smaller amounts of money to business owners who might not qualify for conventional bank loans

Question 7

Venture Capitalists

Answer 7

Investors who provide money to finance new businesses or turnarounds in exchange for a portion of ownership, with the objective of reselling the business at a profit

Question 8

Angel Investors

Answer 8

Private individuals who invest money in start-ups, usually earlier in a business’s life and in smaller amounts than VCs are willing to invest or banks are willing to lend

Question 9

Initial Public Offering (IPO)

Answer 9

A corporation’s first offering of shares to the public

Question 10

Franchise

Answer 10

A business arrangement in which one company (the franchisee) obtains the rights to sell the products and use various elements of a business system of another company (the franchisor)

Question 11

Franchisee

Answer 11

A business owner who pays for the rights to sell the products and use the business system of a franchisor

Question 12

Franchisor

Answer 12

A company that licenses elements of its business system to other companies (franchisees)