1. What is a small business?
    A company that is independently owned and operated, is not dominant in its field, and employs fewer than 500 people (although this number varies by industry).
  2. What is entrepreneurial spirit?
    The positive, forward-thinking desire to create profitable, sustainable business enterprises.
  3. What is a business plan?
    A document that summarizes a proposed business venture, goals, and plans for achieving those goals.
  4. What is an advisory board?
    A team of people with subject-area expertise or vital contacts who help a business owner review plans and decisions.
  5. What are business incubators?
    Facilities that house small businesses and provide support services during the company's early growth phases.
  6. What is seed money?
    The first infusion of capital used to get a business started.
  7. What are microlenders?
    Organizations, often not-for-profit, that lend smaller amounts of money to business owners who might not qualify for conventional bank loans.
  8. What are venture capitalists (VCs)?
    Investors who provide money to finance new businesses or turnarounds in exchange for a portion of ownership, with the objective of reselling the business at a profit.
  9. What are angel investors?
    Private individuals who invest money in start-ups, usually earlier in a business's life and in smaller amounts than VCs are willing to invest or banks are willing to lend.
  10. What are initial public offering (IPO)?
    A corporation's first offering of shares to the public.
  11. What is a franchise?
    A business arrangement in which one company (the franchisee) obtains the rights to sell the products and use various elements of a business system of another company (the franchisor).
  12. What is a franchisee?
    A business owner who pays for the rights to sell the products and use the business system of a franchisor.
  13. What is a franchisor?
    A company that licenses elements of its business system to other companies (franchisees).
Card Set
Chapter 6: Entrepreneurship and Small-Business Ownership