Principles of Business Chapter 5

Front

Knowing about business only benefits you as an employee, not as a consumer.

Back

False

Front

A small business, as defined by the SBA, serves a limited geographic area and employs no more than 100 people.

Back

False

Front

A virtual business acts like a business, but is not a real business.

Back

False

Front

The main reason people become entrepreneurs is to have the opportunity to be creative.

Back

False

Front

Many successful entrepreneurs work in a related business before starting their own company.

Back

True

Front

Before you decide to start a particular business, you need to do market research to see if there is a demand for your product or service.

Back

True

Front

There are 10 essential parts of a business plan.

Back

False

Front

The executive summary of the business plan should be no more than two pages and should include the most important information from each section of the plan.

Back

True

Front

The vision and mission statements in the business plan state the guiding principles by which a business functions.

Back

True

Front

Entrepreneurship is the process of

Back

recognizing a business opportunity, using market research to determine if there is a market for a product or service, gathering the resources needed to go into business.