Business Quiz 5

Large businesses are responsible for most new employment opportunities.

• 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

In comparison to large businesses, small businesses

• can usually charge lower prices
• can provide more personalized customer service
• focus on products that meet the needs of a large group
• have less frequent contact with their customers

The first step in developing a business plan is to...

• identify strategic alternatives
• write the plan
• gather and review information
• ask an expert to review the plan

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

• it is dominant in its field
• the owner is usually the manager
• it serves a small market
• it operates in one or a few locations

A designed change that increases the usefulness of a product, services, or process

• innovation
• invention
• improvement
• entrepreneur

Money provided by large investors to finance new products and new businesses

• start-up financing
• venture capital
• short-term financing
• long-term financing