Intro to Business, Chapter 6, Entrepreneurship and Small Business Management

Question 1

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

Accepted Answer

It is dominant in its field.

Question 2

The first step in developing a business plan is to

Accepted Answer

gather and review information.

Question 3

The most important source of funding is?

Accepted Answer

Personal Income

Question 4

Successful entrepreneurs tend to have all of the following characteristics EXCEPT

Accepted Answer

hesitant.

Question 5

If you start a new business, you need information about

Accepted Answer

all of the above

Question 6

Small businesses have an advantage over big businesses when customers

Accepted Answer

want more individual attention.

Question 7

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

Accepted Answer

True

Question 8

government agency that helps small business owners develop business plans and obtain financing

Accepted Answer

Small Business Administration

Question 9

someone who takes a risk in starting a business to earn a profit.

Accepted Answer

Entrepreneur

Question 10

things that are required in order to live.

Accepted Answer

Needs

Question 11

Everyone who owns a business is an entrepreneur.

Accepted Answer

False

Question 12

the production output in relation to a unit of input, such as a worker.

Accepted Answer

Productivity

Question 13

the amount of money needed to open the business.

Accepted Answer

Start-up financing

Question 14

a written description of the business idea and how it will be carried out

Accepted Answer

Business Plan

Question 15

a designed change that increases the usefulness of a product, service, or process.

Accepted Answer

Improvement

Question 16

a detailed account of a company's materials, supplies, and finished products.

Accepted Answer

Inventory

Question 17

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

Accepted Answer

living in a major U.S. city

Question 18

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

Accepted Answer

True

Question 19

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

Accepted Answer

more than half

Question 20

the money needed to pay for the current operating activities of a business.

Accepted Answer

Short-term financing

Question 21

an independent business with fewer than 500 employees.

Accepted Answer

Small business

Question 22

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

Accepted Answer

one year.

Question 23

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

Accepted Answer

True

Question 24

the process of starting, organizing, managing, and assuming the responsibility for a business.

Accepted Answer

Entrepreneurship

Question 25

Entrepreneurs...

Accepted Answer

come from all age categories and educational backgrounds.

Question 26

The most popular use of business plans is to persuade lenders/investors to finance the venture.

Accepted Answer

True

Question 27

money provided by large investors to finance new products and new businesses

Accepted Answer

Venture capital

Question 28

an invention or creation that is brand new.

Accepted Answer

Innovation

Question 29

money needed for the main resources of a business that will last for many years.

Accepted Answer

Long-term financing

Question 30

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

Accepted Answer

the entrepreneur and his/her family and friends.

Intro to Business, Chapter 6, Entrepreneurship and Small Business Management

Questions 30

Intro to Business, Chapter 6, Entrepreneurship and Small Business Management

Questions 30