ENT 2113 - EXAM 1 STUDY GUIDE
Fortune 500 - Answers :List published annually by Fortune magazine listing the 500
largest corporations (by sales) in the United States
Economies of scale - Answers :A condition that allows the long-run average cost to
continue downward as production increases
3 Critical Elements Entrepreneur's Must Solve: - Answers :1. An effective sales
generation model
2. Sustainable operating profit margins
3. Being properly financed
Stakeholders - Answers :Individuals or other organizations that impact the success of a
business
Harvest plan - Answers :A plan to exit the small business (this typically means to sell
the business to another firm or take it to an IPO).
What does the United States Small Business Administration do? - Answers :- Aids,
counsels, and protect the interests of small businesses
- Provides information at all levels of organizational development for entrepreneurial
businesses
- Provides assistance at all levels of management for entrepreneurial businesses
What are the reasons for the success of entrepreneurial businesses? - Answers :-
Fewer levels of management
- Tend to be more focused than large corporations
- Free to place energy into satisfying the needs of customers
Robber Barons - Answers :Person who has become rich through ruthless and
unscrupulous businesses practices (originally with reference to prominent U.S.
businessmen in the late 19th century)
Glass ceiling - Answers :Refers to the fact that women and minorities may be hired by
large firms but they experience limits based on their advancement within the firm
What is Silicon Valley and Boston's 128 corridor known for? - Answers :- Generating
new employment with entrepreneurial ventures
- Providing a basis to the area's economic vitality
- Providing a growing tax revenue base
Organizational slack - Answers :Excess resources in an organization; typically found in
large organizations rather than small businesses
, Agency theory - Answers :A managerial theory that argues that individuals act to
maximize their own benefit
Potential entrepreneurs need to consider... - Answers :1. Risk tolerance
2. Prior experience
3. Personality orientation
Break-even point - Answers :The level where revenue coming into the firm is sufficient
to cover expenses
Bounded rationality - Answers :Rational decision making that is constrained by the
background and history of the person making the decision
What are the typical triggers for starting a new business? - Answers :1. Being laid off
from established employment
2. Being approached by one or more people with a new business idea
3. Reaching a point financially where the risk-return level of a proposed new business is
tolerable
4. Having very little to lose financially
5. Receiving evidence that an idea is not only doable but that there is a concrete way to
address a given problem
6. Being spurred to action by attending a seminar, reading a book, or talking with
successful entrepreneurs
7. Experiencing a midlife crisis
8. Observing the establishment of an incubator, accelerator, or business development
effort within the community
9. Experiencing the inability to climb the corporate ladder due to circumstances beyond
a person's control
10. After graduating college, you may identify new opportunities that others have not
seen
What are support resources for entrepreneurs? - Answers :1. Family
2. Social networks
3. Community
4. Financial resources
Incubator - Answers :Facilities that house new businesses, providing many critical
services for new businesses
Small Business Assistance Centers - Answers :Centers funded by the Small Business
Administration that advise individuals wishing to start new businesses
Characteristics of large corporations: - Answers :- No one person is crucial to the
survival of the business, even the president of the company
Fortune 500 - Answers :List published annually by Fortune magazine listing the 500
largest corporations (by sales) in the United States
Economies of scale - Answers :A condition that allows the long-run average cost to
continue downward as production increases
3 Critical Elements Entrepreneur's Must Solve: - Answers :1. An effective sales
generation model
2. Sustainable operating profit margins
3. Being properly financed
Stakeholders - Answers :Individuals or other organizations that impact the success of a
business
Harvest plan - Answers :A plan to exit the small business (this typically means to sell
the business to another firm or take it to an IPO).
What does the United States Small Business Administration do? - Answers :- Aids,
counsels, and protect the interests of small businesses
- Provides information at all levels of organizational development for entrepreneurial
businesses
- Provides assistance at all levels of management for entrepreneurial businesses
What are the reasons for the success of entrepreneurial businesses? - Answers :-
Fewer levels of management
- Tend to be more focused than large corporations
- Free to place energy into satisfying the needs of customers
Robber Barons - Answers :Person who has become rich through ruthless and
unscrupulous businesses practices (originally with reference to prominent U.S.
businessmen in the late 19th century)
Glass ceiling - Answers :Refers to the fact that women and minorities may be hired by
large firms but they experience limits based on their advancement within the firm
What is Silicon Valley and Boston's 128 corridor known for? - Answers :- Generating
new employment with entrepreneurial ventures
- Providing a basis to the area's economic vitality
- Providing a growing tax revenue base
Organizational slack - Answers :Excess resources in an organization; typically found in
large organizations rather than small businesses
, Agency theory - Answers :A managerial theory that argues that individuals act to
maximize their own benefit
Potential entrepreneurs need to consider... - Answers :1. Risk tolerance
2. Prior experience
3. Personality orientation
Break-even point - Answers :The level where revenue coming into the firm is sufficient
to cover expenses
Bounded rationality - Answers :Rational decision making that is constrained by the
background and history of the person making the decision
What are the typical triggers for starting a new business? - Answers :1. Being laid off
from established employment
2. Being approached by one or more people with a new business idea
3. Reaching a point financially where the risk-return level of a proposed new business is
tolerable
4. Having very little to lose financially
5. Receiving evidence that an idea is not only doable but that there is a concrete way to
address a given problem
6. Being spurred to action by attending a seminar, reading a book, or talking with
successful entrepreneurs
7. Experiencing a midlife crisis
8. Observing the establishment of an incubator, accelerator, or business development
effort within the community
9. Experiencing the inability to climb the corporate ladder due to circumstances beyond
a person's control
10. After graduating college, you may identify new opportunities that others have not
seen
What are support resources for entrepreneurs? - Answers :1. Family
2. Social networks
3. Community
4. Financial resources
Incubator - Answers :Facilities that house new businesses, providing many critical
services for new businesses
Small Business Assistance Centers - Answers :Centers funded by the Small Business
Administration that advise individuals wishing to start new businesses
Characteristics of large corporations: - Answers :- No one person is crucial to the
survival of the business, even the president of the company
