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Exam 6: Entrepreneurship and Starting a Small Business

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Question 151

True/False

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Entrepreneurs take calculated risks.

A) True
B) False

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verified

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Question 152

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State and local governments often act as venture capitalists.

A) True
B) False

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Question 153

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Increased participation in small business exporting owes credit to ________.

As opposed to venture capitalists,angel investors prefer to target their investments in new firms requiring large sums of money. Venture capitalists often invest in businesses in need of large sums of money.Angel investors are private individuals investing their own money.The amount of money invested by angel investors tends to be less than amounts invested by venture capital firms.

Juanita wants to start a small business.If her primary goal is fast growth and high profits,her best chances would be in the manufacturing sector. Although manufacturing firms are difficult to start and keep going,they do have the greatest potential for the high rates of growth that Juanita needs to achieve her primary goal.

A good business plan will:

Historically entrepreneurs in the U.S.

One of the hurdles small businesses face when deciding to export is:

Successful entrepreneurs accept the risk of failure.

Felicia decided to work for a floral design studio before opening her own shop.This approach to learning the business is okay,but her time would be put to better use starting her own business. Felecia will gain valuable training and insights into the floral design business by working for someone else.Her experience should reduce her risks and help her operate more efficiently when she starts her own business.

The easiest businesses to start are those that offer the greatest profit potential.

Jacques has eliminated the risk of entrepreneurship by preparing a detailed business plan. Entrepreneurs must be able to take calculated risk because there are no guarantees of success.Successful entrepreneurs must be willing to accept uncertainty.However,they should take only calculated risks if they can help it.

Located on Monsanto's world headquarters campus,the Nidus Center is a unique ___________ facility.The tenants are biotechnology companies who are at various stages of product development.The agricultural giant,Monsanto,the Danforth Foundation,Washington University St.Louis,St.Louis University,and several venture capital firms contribute seed money for these small start-up ventures that receive approval to further develop their ideas at the Nidus Center.

Software designed to help create business plans has proven to be of little value because it is difficult to apply it to every business situation.

As a high net worth individual,Allison searches for growth firms in need of additional funding to achieve their goals.In return for this ___________,Allison expects to assume ownership in the business.

Successful entrepreneurs are exclusively motivated by the desire to become rich. Entrepreneurs are often motivated by the challenges and opportunities of starting and operating a business,and by the chance to be independent.Thus,earning a profit is only one of the goals that motivate entrepreneurs.

Which of the following employment statistics about small businesses is true?

Mini-Case Peppy Roaney believes that pizza is a much more versatile dish than most people realize.As the national marketing manager for Pizza Guys,he observed how consumers were delighted with barbecue pizza,Hawaiian pizza,Mexican pizza and other unique combinations.His suggestions for other unusual pizzas,however,were met with a negative response by his superiors.Even some of his colleagues laughed at his ideas.Peppy's confidence in his ability to understand the market has led him to focus on planning a business of his own.Peppy realizes that he will take a risk when he leaves his job with Pizza Guys and embarks upon a new venture: Peppy's Pizzazzeria.Peppy is excited about the potential of profitably catering to the unmet desires of pizza consumers. -Peppy remains confident and enthusiastic even though his colleagues have poked fun at his ideas.This shows that Peppy is:

The Spotlight on Small Business box "You're Never Too Young to be an Entrepreneur",features young people who

Small Business Investment Companies (SBICs)are privately owned companies licensed by the Small Business Administration to lend money to small businesses.