Tooic 5: Chapter 6

Question 1

Entrepreneurship

Answer 1

Accepting the risk of starting, and running a business

Question 2

Entrepreneurial team

Answer 2

A group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make and market a new product

Question 3

Intrapreneurs

Answer 3

Creative people who work as entrepreneurs within corporations

Question 4

Micropreneurs

Answer 4

Entrepreneurs willing to accept the risk of starting and managing the type of business that remains small lets them do the kind of work they want to do and offers them a balance lifestyle

Question 5

Enterprise zones

Answer 5

A specific geographic area to which governments try to attract private business investments by offering lower taxes and other support

Question 6

Incubators

Answer 6

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

Question 7

Small business

Answer 7

Independently owned and operated and is not dominant in its field of operation and meets certain standards of size in terms of employees and annual receipts

Question 8

Some causes of small business failure

Answer 8

• not testing the waters on a small scale
• underestimating the time it takes to build a market
• starting with too much capital and being careless

Question 9

Small business success examples

Answer 9

• the product is not easily made in mass production
• sales are not large enough to appeal to a large firm
• the owner pays attention to new competitors

Question 10

Business plan

Answer 10

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 resources and qualifications of the owner

Question 11

Venture capitalists

Answer 11

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

Question 12

Small business administration (SBA)

Answer 12

A US government agency that advises and assists small business by providing management training and financial advice and loans

Question 13

Small business investment company program

Answer 13

A program through which private investment companies license by the small business administration, lend money to small businesses

Question 14

Market

Answer 14

People with unsatisfied wants and needs who have both the resources and the willingness to buy

Question 15

Service corps of retired executives

Answer 15

An SBA office with volunteers from industry, trade associations, and Education, who council small businesses at no cost