Answer Chapter 1 Entrepreneurship the d

1198 Words Nov 11th, 2014 5 Pages
For lazy student like me (Mey pheap)

Chapter 1:

Discussion Questions

1. What forces have led to the boom in entrepreneurship in the
United States?
Answer
- Corporate downsizing flooding the market with corporate cast-offs, an attitude that small is beautiful, international economic development due to the fall of communism and the capitalization of former state-owned industries, a dream of freedom and independence, perseverance in achieving results, and the opportunities presented by an ever-changing environment.
2. What is an entrepreneur? Give a brief description of the entrepreneurial profile.
Answer
- One who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying
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Lack of inventory control – Although inventory is typically the largest investment for the owner, inventory control is one of the most neglected duties. The result is loss through crime and pressure on cash flows from handling the wrong items.
Inability to make the entrepreneurial transition – Having started the business, some entrepreneurs lack the ability to manage it when it gets larger and fail to turn it over to a different management team.

10. How can the small business owner avoid the common pitfalls that often lead to business failure?
Answer Doing the following will help to avoid pitfalls:
a) know the business in depth,
b) prepare a business plan,
c) manage financial resources,
d) understand financial statements and know how to use them,
e) learn to manage people effectively,
f) keep in tune with yourself.
11. Why is it important to study the small business failure rate?
Answer It provides a realistic picture for potential entrepreneurs to consider prior to their launching of their businesses. It provides understanding of why businesses fail and offers insight into ways to prevent it.
12. Explain the typical entrepreneur's attitude toward failure.
Answer He/she learn from the mistakes and tries again. He/she takes moderate, considered risks, has a positive upbeat attitude, and doesn't avoid failure; he/she learn from it.
13. One entrepreneur says that too many people "don't see that by spending their lives
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