Understanding Business Chapter 6 Flashcards
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A creative person working within a corporation to launch new products and generate new profits is known as a(n)
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intrapreneur
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Business incubators are usually government-funded facilities intended to
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offer startup firms low-cost office space and basic business services
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Historically entrepreneurs in the U.S.
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started many small firms that later became major corporations employing thousands of workers
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The Spotlight on Small Business box "Success Knows No Age", features young people who
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turned a social passion into a business opportunity
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Kenya recently quit a job with a large corporation to start her own business. While she realizes that her decision comes with risk, she is excited for the chance to be independent and by the challenges of running her own firm. Kenya is an example of a(n)
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entrepreneur
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According to economist Bruce Kirchhoff, small business failures are
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lower than traditionally reported
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When comparing small businesses to their larger competitors, it is clear that
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small firms often can offer more personalized customer services than big firms
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Dr. Smiley White just graduated from dental school. He is hoping to acquire the necessary funding to start his own dental practice. One advantage of this type of business is
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the service is individualized and not easily mass-produced
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John, James, and Frank wanted to open J2F Sports Bar that offers unique brands of beer, weekend entertainment, and a limited menu. In one of the preliminary meetings, James presented a list of reasons that small businesses fail. Although many of the ideas on this list were applicable to many types of business, one challenge pertained specifically to the restaurant and bar business. The challenge he referred to was
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Some of the easiest businesses to start have the least growth and greatest failure rate
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A ________ refers to people with unsatisfied wants and needs who are willing and able to buy a product or service
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market
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A(n) ____________ is a valuable source of information regarding techniques to reduce a firm's exposure to risk
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insurance agent
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Similar to how large businesses proceed, small businesses make marketing decisions _____________
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before a product is developed or store is opened
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The Small Business Administration sponsors volunteers from industry, trade associations, and education who offer advice to small business owners. These volunteers are called
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the Service Corps of Retired Executives
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When seeking financial backing from a venture capitalist, a small business owner should realize that the venture capitalist will
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expect an ownership stake in the company in exchange for financial backing
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Which of the following is not a recommended source of small business advice for persons contemplating a new business?
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Other prospective small business owners
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After retiring as a telecommunications executive, Chad joined SCORE. As a SCORE counselor Chad will
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provide consulting services to small businesses for free
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Peppy remains confident and enthusiastic even though his colleagues have poked fun at his ideas. This shows that Peppy is
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self-nurturing
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Peppy has inquired about the possibility of obtaining a microloan from the SBA. This type of loan is awarded primarily on the basis of the
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borrower's integrity and the soundness of the business idea
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Due to the fact that Peppy has worked in the field of marketing for a large corporation,
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he plans to put together an entrepreneurial team of experts that will complement his expertise
