Ch 6 Entrepreneurship and Small Business Management

Large businesses are responsible for most new employment opportunities.

• True
• False

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

• True
• False

Small businesses are responsible for _____ of the U.S. gross domestic product each year.

• less than 10 percent
• about a quarter
• more than half
• about 75 percent

Small businesses employ _____ of private sector employees in the United States.

• less than 10 percent
• about a quarter
• more than half
• about 75 percent

By far the greatest percentage of businesses in the U.S. is small businesses.

• True
• False

It is best to start a business when demand for its products and services is high.

• True
• False

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

• having a desire to be your own boss
• living in a major city
• having special skills and abilities
• developing a good business plan

Entrepreneurs...

• cannot tolerate ambiguity or uncertainty
• must have a business degree
• are unable to problem solve and learn from failure
• come from all ages, race, and educational backgrounds

According to the SBA, a small business is an independent business with fewer than ___ employees.

• 10
• 50
• 100
• 500

Most of the money needed to start a business comes from

• the owner and his/her family and friends
• selling stock
• bank loans
• credit from other businesses