Question 1

When you provide ownership shares in exchange for capital that does not have to be repaid in order to start or run your business, you are using __________ financing.

Accepted Answer

The answer of When you provide ownership shares in exchange...

Question 2

How would you evaluate your "fit" as an entrepreneur?

Accepted Answer

The answer of How would you evaluate your "fit" as...

Question 3

Compare and contrast the various structural options open to a small business organization.

Accepted Answer

The answer of Compare and contrast the various structural options...

Question 4

When an IPO is successful, the market bids up the share price, thus increasing the value of the original shares held by the venture capitalist and the entrepreneur.

Accepted Answer

When an IPO is successful, it generates demand for the company's shares, resulting in an increase in the share price. This increase in share price benefits the original shareholders, including venture capitalists and entrepreneurs, by increasing the value of their shares.

Question 5

__________ display entrepreneurial behavior as employees of larger firms.

Accepted Answer

The answer of __________ display entrepreneurial behavior as employees of...

Question 6

The document that describes the goals of the firm, outlines how it intends to operate, and lays out the financial strategies is called a(n) __________.

Accepted Answer

The answer of The document that describes the goals of...

Question 7

Equity financing provides control to the business owner which has to be repaid eventually.

Accepted Answer

Equity financing does not have to be repaid, instead the investor becomes a partial owner and shares in the profits and losses of the business. However, this does mean that the business owner may have to share control with the investor.

Question 8

The underlying reasons for most small business failures are __________ mistakes.

Accepted Answer

The answer of The underlying reasons for most small business...

Question 9

The main, if not only, reason for writing a business plan is to obtain financing.

Accepted Answer

While obtaining financing may be one reason for writing a business plan, it is not the only reason. A business plan can also help clarify business goals, outline strategies, and provide a roadmap for growth and success. It can also serve as a tool for communication and collaboration with stakeholders such as investors, employees, and partners.

Question 10

A good family succession plan won't only spell out how the financial end of things will be handled, but it should also cover control and leadership issues.

Accepted Answer

A family succession plan should address both financial and leadership aspects to ensure a smooth transition of power and control within the family business.

Question 11

In a limited partnership, only the general manager is involved in the day-to-day operations; however, all partners share in the profits.

Accepted Answer

In a limited partnership, the general partners manage the day-to-day operations, while limited partners contribute capital and share in the profits but do not participate in management decisions.

Question 12

When an entrepreneur is forced to open their own business due to layoffs from their job and a low likelihood of replacing the job, inability to grow in their current career, or simply to put food on the table, they are engaged in __________ entrepreneurship.

Accepted Answer

The answer of When an entrepreneur is forced to open...

Question 13

__________ involves developing a business to solve pressing societal needs at home or abroad.

Accepted Answer

The answer of __________ involves developing a business to solve...

Question 14

A(n) __________ occurs when a firm moves faster than its competitors in spotting and exploiting a new market or previously unrecognized niche in the market.

Accepted Answer

The answer of A(n) __________ occurs when a firm moves...

Question 15

The organizational structure that exists as a legal entity separate from the ownership is called a(n) __________.

Accepted Answer

The answer of The organizational structure that exists as a...

Question 16

An LLC is a hybrid structural form that gives advantages of sole proprietorships / partnerships for taxes and corporations for liability protection.

Accepted Answer

An LLC (Limited Liability Company) is a type of business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability protection of a corporation. This means that LLC owners (known as members) are typically not personally liable for the company's debts and liabilities, but they also get to avoid double taxation on profits like corporations. Therefore, an LLC can be considered a hybrid structure that provides the best of both worlds.

Question 17

A(n) __________ is when two or more people agree to contribute resources to start and operate a business together.

Accepted Answer

The answer of A(n) __________ is when two or more...

Question 18

A(n) __________ is a facility that offers services to help new businesses get established.

Accepted Answer

The answer of A(n) __________ is a facility that offers...

Question 19

Individuals and/or groups who make money by providing funds to new companies in exchange for an equity position and the hope of rising equity value are called __________.

Accepted Answer

The answer of Individuals and/or groups who make money by...

Question 20

In addition to all of the normal operational challenges of small business, when you decide to go into business with siblings, parents, or relatives, you also face the possibility of __________ developing over the multiple relationships and issues that exist outside of the business, complicating the business relationships as well.

Accepted Answer

The answer of In addition to all of the normal...

Quiz 18: Entrepreneurship and Small Business: Taking Risks Can Make Dreams Come True