Chapter 6 Test Review

Many entrepreneurs own their first business while in their teens.

• True

• False

Nearly 75% of all small businesses become successful.

• True

• False

The first step in developing a business plan is to gather and review information.

• True

• False

A good example of an entrepreneur is

• police officer

• FedEx driver

• flower shop owner

• grocery store cashier

Nearly ____ percent of all Americans aged 18-64 are involved in some type of entrepreneurial activity.

• 90

• 100

• 10

• 75

New businesses often fail because of

• high demand for its products

• low sales

• cheap utilities (expenses)

• improvement of its products

Innovation is

• buying new shoes from a sporting goods store

• replacing an old cell phone with a new one

• a brand new invention or creation

• upgrading to a new car

Business ideas can come from

• books and magazines

• business experiences

• hobbies and interests

• all of the above

The most important step in starting a business is developing confidence.

• True

• False

A business plan includes a description of the strengths and weaknesses of competitors.

• True

• False