商务英语复习题3.docVIP

1) What is an entrepreneur? Answer: An entrepreneur is a businessperson who accepts both the risks and the opportunities involved in creating and operating a new business venture. 2) Why might an entrepreneur wish to purchase an existing business rather than starting one from scratch? Answer: An entrepreneur may wish to purchase an existing business because of an increased chance for success. An existing business will have established working relationships with lenders, suppliers, and the community. The track record of an existing business gives potential buyers a much clearer picture of what to expect than any estimate of a new business prospects. 3) In a franchise, what are advantages and disadvantages for the franchisee? Answer: The advantages of franchising include access to managerial and financial help, the benefits of the selling corporations expertise and experience, and reduced chances of failure. The disadvantages of franchising include significant startup costs and continued obligations to contribute a percentage of sales to parent corporations. 4) What is a venture capital company? Answer: A venture capital company is a group of small investors seeking to make profits on companies with rapid growth potential. 5) How has the Internet affected small-business start-ups in recent years? Answer: Because the Internet provides fundamentally new ways of doing business, entrepreneurs have created and expanded new businesses faster and easier than ever before. 6) What are four reasons for small business failure cited in the text? Answer: Small businesses fail because of managerial incompetence or inexperience, neglect, weak control systems, and insufficient capital. 7) What are four reasons for small business success cited in the text? Answer: Small businesses succeed because of hard work, drive, and dedication; market demand for products or services being provided; managerial competence; and luck. 8) Describe three advantages of operating a bus