Entrepreneurship & Small Business

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

• start up
• long-term
• short-term
• owner

Many small businesses have an advantage over larger businesses because they are better able to ________.

• raise large amounts of financial capital
• mass produce products
• provide unique services to customers
• market their products

Between 1990 and 2005, roughly what percentage of new jobs were created by businesses with fewer than 500 employees?

• 20 percent
• 40 percent
• 60 percent
• 80 percent

There is little evidence that developing a business plan has any impact on whether a new business fails or succeeds.

• True
• False

Which of the following is not a common reason for the failure of small businesses?

• lack of sufficient start-up money
• failure to manage credit offered to customers
• shortage of skilled workers
• lack of management experience

Entrepreneurship is risky.

• True
• False

Approximately half of all small businesses are home-based businesses.

• True
• False

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

• True
• False

Before a business owner completes the business plan, he or she should ask business experts to review the plan.

• True
• False

What is the most common type of small business, making up about 14.6 percent of all small businesses?

• retail trade
• construction
• educational services
• manufacturing