Intro to Bus Chapter 6 Review

An entrepreneur is someone who takes a risk in starting a business in hopes of breaking even on their investment.

• True

• False

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

• Stewardship

• Guardianship

• Entrepreneurship

• Membership

Which of the following are legitimate sources of capital investments for your start-up business: (select all that apply)

• Venture Capitalist

• Angel Investor

• Private Equity Firm

• The State Lottery

An __________ is the invention or creation of something new.

• improvement

• idea

• initiative

• innovation

An __________ is a change that makes something better or increases the usefulness of a process, product, or service.

• improvement

• idea

• initiative

• innovation

Everyone who owns or manages a business is an entrepreneur.

• True

• False

All of the following are characteristics common to entrepreneurs, except:

• competitive

• creative

• unconfident

• independent

By the federal government definition , a small business has _________ employees.

• up to 1,000

• less than 500

• between 1 and 100

• more than 2 but less than 200

Select all that often apply to a small business: (select all that apply)

• owner is the manager

• only one or a few locations

• dominant market share

• offers poor customer service

The #1 reason for small business failure is _______.

• owner doesn't work hard enough

• not enough capital funding

• manager doesn't know what they are doing

• too much competition