Intro to Business - Chapter 6

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

• 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

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

• living in a major U.S. city

• having special skills and abilities

• having a real desire to be your own boss

• developing a good initial business plan

Successful entrepreneurs tend to have all of the following characteristics EXCEPT:

• energetic

• goal-oriented

• creative

• hesitant

Entrepreneurs:

• 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

• All of the above

Adding a new ingredient to an existing laundry detergent is an example of:

• improvement

• invention

• innovation

• opportunity cost

Which of the following does NOT describe a typical small business?

• The owner is usually the manager

• It is dominant in its field

• It serves a small market

• It operates in one or very few locations

Small business owners:

• usually get direct info from their customers

• have less frequent contact with their customers

• rely heavily on consumer research to gather info

• focus on products and services for large groups of customers

Location is important to small retail businesses because:

• most retailers need good customer traffic to survive

• potential customers will stay away if they can't find it

• customers generally do not want to travel long distances

• all of the above