Chapter 12 Quiz

Fewer then half of all new businesses will survive for five years.

• True

• False

Small-business owners are able to take long vacations and often have a lot of time for hobbies.

• True

• False

Every business begins with an idea.

• True

• False

Work experience in the same type of business you plan to start is necessary to the success of all business.

• True

• False

Most retail business require good customer traffic.

• True

• False

Timing is not important in starting a business as long as a solid idea is formed.

• True

• False

The majority of small businesses have between 10 and 17 employees.

• True

• False

Most businesses plans are developed for one year and then updated for the next three years.

• True

• False

The most popular use of business plans is to persuade lenders and investors to finance the venture.

• True

• False

Short-term financing is the money needed to pay for the current operating activities of a business.

• True

• False