5 Questions with answers on 4383-final-exam-
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You'll find the list of questions at the end of the document
1. What is the term for an individual who initiates, develops, and
manages a new business venture?
An individual who starts, creates, and manages a new business is called an
entrepreneur. Entrepreneurs are characterized by their ability to identify
opportunities, take risks, and organize resources to bring new products or
services to market.
2. Explain why a well-structured business plan is crucial for a new
venture.
A business plan is vital for several reasons. Firstly, it serves as a persuasive
tool to attract potential investors and secure funding by demonstrating the
venture's viability and potential for success. Secondly, it acts as a roadmap
for the business, outlining objectives, strategies, and operational plans,
thereby guiding business activities and ensuring alignment towards
common goals. Finally, it helps in identifying potential risks and challenges,
allowing for proactive planning and mitigation strategies.
3. Describe the potential disadvantages of starting a business from
scratch (a start-up) compared to other market entry strategies.
One significant disadvantage of starting a business from scratch is the high
failure rate associated with new ventures. Start-ups often face numerous
challenges, including limited resources, lack of established brand
recognition, and intense competition. Furthermore, securing funding can be
difficult, and the initial period may involve significant personal sacrifices
and long working hours. Building a customer base and establishing a strong
market presence also takes time and effort, increasing the risk of failure
compared to acquiring an existing business or franchising.
4. What role do small businesses play in a country's economy?
Small businesses are crucial to a country's economy for several reasons.
They provide an outlet for entrepreneurial talent and innovation, fostering
economic dynamism. They often offer specialized support and services to
larger companies, contributing to the overall efficiency of the supply chain.
Small businesses are also frequently innovators of new products and
services, driving technological advancements and meeting niche market
demands. Furthermore, they create jobs and contribute to local economic
development.
5. Discuss the significance of innovation in the context of
entrepreneurship.
