BUS Chapter 6

Everyone who owns or manages a business is an entrepreneur.

• True
• False

Money provided by large investors to finance new products and new businesses that have a good chance to become very profitable is known as:

• a loan
• credit
• venture capital
• start-up funding

The primary reason that businesses started by entrepreneurs close is disagreements with business partners.

• True
• False

The Small Business Administration (SBA) considers a business small if it employs fewer than ________ employees.

• 5
• 20
• 100
• 500

A competitive advantage that small business have over large businesses is ____________ .

• lower costs
• more customer research
• lower prices
• attention to unique customer needs

Which of the following is NOT one of reasons small businesses fail?

• poor customer credit practices
• the owner does not have adequate experience
• a poor business location
• not enough employees to do the work

Every business begins with a(n)

• customer
• profit
• idea
• invention

Most small business owners enjoy being members of team.

• True
• False

A business plan does not have to be written because the business owner is well aware of the information in the plan.

• True
• False

Money needed for the important resources of a business (such as land, building, and equipment) that will last for many years is called ____________________ .

• start-up financing
• short-term financing
• long-term financing
• credit