Intro to Business: Ch. 6 Test Review

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

• True
• False

All entrepreneurship opportunities emerge from inventions and innovations. 

• True
• False

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

• True
• False 

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

• True
• False

The most important step in starting a business is preparation. 

• True
• False

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

• True
• False

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

• living in a major US city
• having special skills & abilities
• having a real desire to be your own boss
• developing a good initial business paln

Successful entrepreneurs tend to have all of the following characteristics EXCEPT

• energetic
• goal-oriented
• creative
• hesitant 

Entrepreneurs

• must have a very low tolerance for ambiguity
• almost never own their first business while in their teens
• come from all age categories and educational backgrounds
• must have a business degree to be successful.

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

• the sale of stock
• credit given by businesses that sell products & services to the new business
• bank loans
• the entrepreneur and his/her family & friends