What term describes individuals who create new independent businesses with support from their corporate parent?

Study for the Penn Foster Principles of Management (BUS 110) Test. Review core concepts with flashcards and multiple-choice questions, each offering hints and explanations. Prepare effectively for your exam!

The term that describes individuals who create new independent businesses with the support of their corporate parent is "intrapreneurs." Intrapreneurs operate within an existing organization and act like entrepreneurs by innovating and developing new products or services. They leverage the resources, funding, and initial customer base provided by their corporate parent while maintaining some level of independence in how they work and navigate their new business ventures.

Unlike entrepreneurs who typically start businesses from scratch and bear the complete risks and rewards independently, intrapreneurs benefit from the infrastructure and stability of an established company. This support can include access to market research, funding, and mentoring, allowing intrapreneurs to focus on innovation without the pressures that often accompany starting a business alone.

The other terms provided do not accurately describe this relationship. Entrepreneurs generally refer to those who build new businesses independently. Franchisees operate under a franchise model, which involves using an established brand and business model but does not necessarily involve the support of a corporate parent in the same way intrapreneurs do. Start-up founders, similar to entrepreneurs, are those who initiate new companies without the support of a larger firm.

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