Chapter 5- Entrepreneurship Exam Questions and Correct Answers Latest Update 2024 (Graded A+)

Chapter 5- Entrepreneurship Exam Questions and Correct Answers Latest Update 2024 (Graded A+) Entrepreneurship - Answers process of 1)recognizing a business opportunity, 2) using market research to determine if there is a market for a product or service, and 3) gathering the resources needed to go into business. Venture - Answers A new business undertaking that involves risk Recommended traits for entrepreneurs - Answers 1) risk-taker, 2) Virtual business - Answers business that operates on the Internet Most US businesses are - Answers sole proprietorships One of the biggest obstacles in starting a business - Answers obtaining financing Business Plan - Answers a written description of a business venture that describes all aspects of the business A business plan is used by - Answers 1) potential investors to see if they want to invest in the business, 2) top management involved in the start-up of a new business, and 3) the entrepreneur to keep focused on the goals of the business The company description section of a business plan - Answers helps investors understand 1) the size of the business, 2) the scope of the business, and 3) the type of the business Vision Statement - Answers establishes the scope and purpose of the company Market Analysis - Answers in a business plan, it includes research about the business' customers Executive Summary - Answers a brief account of the key points contained in a business plan Media Plan - Answers in a business plan, this is included in the marketing plan SBA - Answers Small Business Administration Entrepreneurs - Answers unlike people who run corporations or partnerships, these people do not have to consult with others before making a decision partnership - Answers is owned and run by two or more people 4 out 5 businesses - Answers fail in their first 5 years market research - Answers research that is done to determine if there is a demand for your product or service small business - Answers an independently owned business that usually has the owner as its manager significant - Answers having a special meaning or importance concept - Answers a general idea Mission statement - Answers a statement that expresses the specific aspirations of the company Characteristics of successful entrepreneurs - Answers 1) persistent, 2) goal-oriented, 3) creative, 4) risk-taking, 5) action-oriented, 6) independent, 7) self-confident, 8) responsible, 9) inquisitive, 10) restless, 11) self-demanding, 12) enthusiastic Rewards for entrepreneurship - Answers 1) being the boss, 2) doing what you enjoy, 3) having the opportunity to be creative, 4) building an enterprise, 5) developing your own schedule Challenges of entrepreneurship - Answers 1) getting funds to start the business, 2) being fully responsible for the business, 3) feeling alone and insecure about making the right decisions, 4) working long hours, 5) facing uncertain income levels; risking loss of the investment if the business fails