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PRINCIPLES OF BUSINESS - CHAPTER 6 TEST REVIEW Flashcards | StudBud
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PRINCIPLES OF BUSINESS - CHAPTER 6 TEST REVIEW
PRINCIPLES OF BUSINESS - CHAPTER 6 TEST REVIEW
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Chapter 6 - Entrepreneurship and Small Business Management
Flashcards
33 cards
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Practice quiz
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Questions
33
Answers
1
Which of the following does
NOT
describe a typical small business?
Only 1 or very few locations
Dominant in its field
Serves a small market
Owner is manager.
2
Long-term financing
is for big expenses that will last for how long?
12 months
many years
one month
6 months
3
In the USA, women own what percentage of small businesses?
35%
25%
75%
50%
4
How many new businesses are created in the U.S. every year?
6.25 million
625 thousand
62.5 million
62.5 thousand
5
When starting a new business, you need information about:
customers
competitors
government regulations
all of the above
6
In the US, nearly as many small businesses close as begin each year.
False
True
7
Entrepreneurs come from all age categories and educational backgrounds.
False
True
8
A small business is an independent business with fewer than ______ employees.
100
50
500
10
9
With small businesses, _______________ is everything!
Prices
Advertising
Location
Sales
10
If a company adds an ingredient to a product to make it better, this is an example of what?
Innovation
Creation
Improvement
Invention
11
A written description of a business idea and how it will be carried out is _______.
Innovation
Journal
Improvement
Business Plan
12
Successful entrepreneurs tend to have which characteristics?
All of the Choices!
Creative
Energetic
Goal-Oriented
13
The money needed to open a business is
start-up financing
.
False
True
14
Money needed for the current operating activities is ______________ financing.
Long-Term
Short-Term
15
Big businesses show advantage over small businesses because they provide individual attention.
False
True
16
Large businesses can better meet the precise needs of customers than small businesses.
False
True
17
Everyone who owns a business in an entrepreneur.
False
True
18
Most money to start a new business comes from where?
friends/family
selling stock
bank loans
credit cards
19
The most important step in going into business is what?
Buying Equipment
Preparation/Research
Planning your Location
Getting a Partner
20
An invention or creation that is brand new is _________________.
Improvement
Innovation
21
Small business owners must form a
"team"
around them, consisting of _________________.
bankers
lawyers
all of these!
accountants
22
How many new businesses are created in the US each year?
625 thousand
6.25 million
62.5 million
62.5 thousand
23
Which of the following is the success rate of new businesses?
1/2-$$$; 1/4-Even; 1/4-Lose $$$
1/3-$$$; 1/3-Even; 1/3-Lose $$$
24
A business plan should never be revised.
True
False
25
All entrepreneurship opportunities emerge from
innovation
and
inventions
.
True
False
26
72% of all businesses account for over $600 billion in sales each year.
True
False
27
The first step in developing a business plan is to gather and review information.
False
True
28
To get started in business, most entrepreneurs borrow from a bank.
False
True
29
Business plans are mostly used to obtain investment money.
True
False
30
Many new businesses close down because of a poor location.
False
True
31
An entrepreneur is someone who takes a
risk
in starting a business to earn a profit.
True
False
32
With entrepreneurs, what is the least important factor?
Developing a good initial business plan
Having special skills/abilities
Having a desire to be your own boss
Living in a major US city
33
Short-term financing is obtained for a period of less than what period?
2 years
6 months
1 year
3 months
