Choose the key terms from this chapter that match the given definitions.
1. A formal document that outlines the vision, strategies, personnel, and resources that will be used to create a business
A. Business incubator B.Entrepreneurship C. Business plan D. Entrepreneur
2. The ability to deal with constant change and uncertainty without getting overly stressed
A. External locus of control B. Internal locus of control C. Tolerance for ambiguity D. Need to achieve
3. A type of business that exists separate and apart from the individuals who own it, thus protecting the owners’ personal assets in cases of liability
A. Franchising B. Partnership C. Corporation D. Sole proprietorship
4. A type of financing in which outside investors become part owners of the business
A. Equity financing B. Social financing C. Debt financing D. Incubator financing
5. Think about the different ways entrepreneurs can start their businesses.
Which of the following things can an entrepreneur expect when he or she starts a new business as a franchise? Check all that apply.
A. All of the information a franchisee needs to determine whether or not to buy the franchise will be in disclosure documents provided by the franchisor.
B. The franchisor will provide the entrepreneur with management help and support.
C. The franchisor will expect the entrepreneur to do things in a particular way.
D. The franchisor will allow the entrepreneur to run the business however he or she wants.