Business 111 Chapter 6

Jake is an innovative engineering graduate who works for a large company that makes adhesive products for commercial and consumer use. One of his primary responsibilities is to initiate and develop new products to complement the firm's current product line. Jake's company is ___________.

• intrapreneurial

• entrepreneurial

• an outside consultant for other firms

• at a disadvantage because it is trying to operate like a small business

Southwest College received a government grant to establish a business incubator. This facility will offer:

• local government agencies assistance in obtaining funds for urban renewal.

• area businesses advice on employee benefits and ways to reduce taxes.

• venture capitalists an opportunity to identify new entrepreneurs.

• new businesses low-cost office space with basic business services.

Dr. Smiley White just graduated from dental school. She is hoping to acquire the necessary funding to start her own dental practice. One advantage of this type of business is:

• above average opportunity to borrow funds at a high interest rate.

• nearly unlimited growth potential.

• the service is individualized and not easily mass-produced.

• very low start-up costs.

Pam logged onto her Facebook account and noted that Sallie liked two different websites. Since Sallie is a good friend of Pam’s and a reliable source of information, Pam checked out these websites and decided to purchase products from one of them. A common strategy for web-based business is _______________.

• strong-arm marketing

• strategic alliance marketing

• dendritic marketing

• affiliate marketing

Andre works for a company that promotes an entrepreneurial culture. Employees are encouraged to discuss new ideas. Development time is provided on the job for those ideas that float to the top. Employees who use their creative talents to generate ideas and create products within large companies are called ________.

• brainstormers

• intrapreneurs

• analyzers

• patent directors

When Parker started his business, he knew he had to keep costs to a minimum and he worried about taxes. He planned to build and distribute safety goggles for construction workers and military personnel. He realized most of his business would not be through walk-in customers but rather large orders from companies. He chose to locate in a government-subsidized area called a(n) ________________, where he would receive tax breaks.

• affective designation

• immigration zone

• enterprise zone

• intrapreneurial territory

While cultural differences and bureaucratic paperwork for foreign governments make the prospect of global trade difficult for small businesses, there is one bright spot on the horizon that has brought global trade closer to home. Small businesses can now ________.

• buy health insurance for employees abroad that is much cheaper than in the U.S.

• avoid U.S. labor laws that do not permit them to employ child labor

• use technology such as PayPal to fulfill orders, which gives them some assurance of payment

• delegate the details of going global to U.S. government employees who are mandated to assure small businesses succeed abroad

There are many reasons why small-business owners don’t go international. Which of the following is not one of those reasons?

• They don’t know how to get started.

• Financing is often difficult to find.

• Paperwork is often overwhelming.

• The market doesn’t have great potential.

Small businesses often have advantages in international markets. One advantage is:

• a greater expertise in managing the paperwork required to sell goods in international markets.

• a better understanding of the cultural differences involved.

• the ability to obtain financing through the International Monetary Fund.

• individualized customer service as opposed to impersonal corporate bureaucracies.

While on a trip to South Africa, Erin was impressed with colorful woven outdoor placemats, floor mats, chair cushions, and umbrellas that local artisans were weaving. Upon returning to the U.S., she was confident that U.S. consumers would be as intrigued by these accessories as she was. Erin decided to explore the possibility of starting an importing business to bring these products to the U.S. Which of the following statements seems to be good advice for Erin?

• Learn from others who import goods from abroad, and particularly from Africa.

• Make certain that you have twice the cash necessary to make your first purchases.

• Before performing a feasibility study, form your legal business status.

• Since most import businesses are also export businesses, find a U.S. product South Africans would be willing to buy.