Chapter 5

Question 1

Entrepreneurship

Answer 1

the process of creating and managing a business to achieve desired objectives.

Question 2

Microentrepreneurs

Answer 2

entrepreneurs who develop businesses with five or fewer employees.

Question 3

Social entrepreneurs

Answer 3

individuals who use entrepreneurship to address social problems.

Question 4

Small Business

Answer 4

any independently owned and operated business that is not dominant in its competitive area and does not employ more than 500 people.

Question 5

Small Business Aministration (SBA)

Answer 5

an independent agency of the federal government that offers managerial and financial assistance to small businesses.

Question 6

Sharing Economy

Answer 6

an economic model involving the sharing of underutilized resources.

Question 7

Gig economy

Answer 7

an economic model involving independent contractors selling their services on-demand.

Question 8

Undercapitalization

Answer 8

the lack of funds to operate a business normally.

Question 9

Business Plan

Answer 9

a precise statement of the rationale for a business and a step-by-step explanation of how it will achieve its goals.

Question 10

Venture Capitalists

Answer 10

persons or organizations that agree to provide some funds for a new business in exchange for an ownership interest or stock.

Question 11

Franchise

Answer 11

a license to sell another’s products or to use another’s name in business, or both.

Question 12

Franchiser

Answer 12

the company that sells a franchise.

Question 13

Franchisee

Answer 13

the purchaser of a franchise.

Question 14

Intrapreneurs

Answer 14

individuals in large firms who take responsibility for the development of innovations within the organization.