Business Essentials - Ch. 6-7 Review

The process of starting, organizing, and assuming the responsibility for a business is known as

• Marketing

• Business Essentials

• Entrepreneurship

• Management

T/F: An entrepreneur is someone who takes hardly any risk in starting a business to earn a profit

• True

• False

There are over ___________ new businesses created annually in the United States

• 200,000

• 300,000

• 500,000

• 1,000,000

Money that's provided by large investors to finance new businesses and products that have a good chance to be profitable is known as a(n) ________________.

• Venture Capital

• Financial Investment

• Financial Resources

• None of the above

T/F: Apple updating the newest iPhone to have facial recognition capabilities is an example of an innovation

• True

• False

All of the following are advantages of running a small business except for:

• Easier to meet precise needs of customers

• Focuses on products and services that meet large groups of customers

• Offer unique services that can require individual attention

• Higher operating expenses

Which of the following is a disadvantage to running a small business?

• Higher frequency for failure

• Lack of enough start-up money

• Much higher time requirement

• All of the above

T/F: The amount of money needed to open the business (cost of buildings, equipment, inventory, supplies, etc.) is known as Start-up Financing

• True

• False

The process of accomplishing the goals of an organization through the effective use of people and other resources is known as:

• Leadership

• Ingenuity

• Management

• Collaboration

T/F: There are four functions of Management: Planning, Staffing, Organizing, and Implementing

• True

• False