Intro to Business Ch. 6

Question 1

Most popular use of business plans is to persuade lenders and investors to finance the venture.

Accepted Answer

True

Question 2

It is easier for a small business to meet the precise needs of customers than a large business.

Accepted Answer

True

Question 3

Which of the following does NOT describe a typical small business?

Accepted Answer

It is dominant in its field.

Question 4

_____________ capital is money provided by large investors to finance new products and business

Accepted Answer

Venture

Question 5

Money needed for current operating activities of a business is referred to as_______ financing.

Accepted Answer

Short-term

Question 6

A designed change that increases the usefulness of a product is called a(n)___________________.

Accepted Answer

improvement

Question 7

Everyone who owns a business is an entrepreneur.

Accepted Answer

False

Question 8

A(n) _______________ is someone who takes a risk in starting a business to earn a profit.

Accepted Answer

entrepreneur

Question 9

Successful entrepreneurs tend to have all of the following characteristics EXCEPT

Accepted Answer

hesitant

Question 10

If you start a new business, you need information about

Accepted Answer

all of the above

Question 11

Detergent with new extra cleaning power. This is an example of an

Accepted Answer

Improvement

Question 12

the Service Corps of Retired ________ are retired businesspeople who volunteer their services

Accepted Answer

Executives

Question 13

In a(n) ____________________, one person will supply the money.

Accepted Answer

proprietorship

Question 14

Short-term financing is obtained for a period of less than

Accepted Answer

one year.

Question 15

A(n) _______________ is an invention or creation that is brand new.

Accepted Answer

innovation

Question 16

The amount of money needed to open a business is called ____________________ financing.

Accepted Answer

start-up

Question 17

The process of starting, organizing, and managing a business is called capitalism.

Accepted Answer

False

Question 18

The first step in developing a business plan is to

Accepted Answer

gather and review information.

Question 19

Of all new businesses,

Accepted Answer

1/3 make money, 1/3 do not make a profit, and 1/3 lose money

Question 20

Most of the money needed to start a new business comes from

Accepted Answer

the entrepreneur and his/her family and friends.

Question 21

In the United States, nearly as many small businesses close as begin each year.

Accepted Answer

True

Question 22

A business ________ is a written description of a business idea and how it will be carried out.

Accepted Answer

Plan

Question 23

Which of the following is probably the LEAST important factor in becoming an entrepreneur?

Accepted Answer

living in a major U.S. city

Question 24

Entrepreneurs

Accepted Answer

come from all age categories and educational backgrounds.

Question 25

Location is important to small retail businesses because

Accepted Answer

all of the above

Question 26

The Small Business ____ is an agency that helps small business owners get financing and support

Accepted Answer

Administration

Question 27

Once a business plan is written, it should never be revised and should never be updated.

Accepted Answer

False

Question 28

Many small businesses fail simply because they are not located in the right spot.

Accepted Answer

True

Question 29

Small businesses account for ____ of the U.S. gross domestic product each year.

Accepted Answer

more than half

Question 30

Small businesses have an advantage over big businesses when customers

Accepted Answer

want more individual attention.

Intro to Business Ch. 6

Questions 30

Intro to Business Ch. 6

Questions 30