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