Entrepreneurship Chapter 1 Review

Entrepreneurs try to meet the needs of the marketplace by supplying a product or service.

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Entrepreneurs and employees are both directly affected by the consequences of the decisions they make.

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There are generally four types of businesses: manufacturing, wholesaling, retailing, and franchising.

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Entrepreneurial businesses include retailing businesses, such as clothing and furniture stores, but do not include service businesses.

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Manufacturing businesses produce the products they sell.

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A travel agency is a retailing business.

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Small businesses with fewer than 500 employees represent about 25 percent of all businesses in the United States today.

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Small businesses contribute billions of dollars to the U.S. economy every year.

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The failure rate for restaurants is higher than for other types of small businesses.

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The owner's business experience is a factor that contributes to the likelihood of success.

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