Ch. 1-6 Midterm Review

The primary reason that businesses started by entrepreneurs close is disagreements with business partners.

• True

• False

Everyone who owns or manages a business is an entrepreneur.

• True

• False

Money provided by large investors to finance new products and new businesses that have a good chance to be profitable:

• a loan

• credit

• venture capital

• start-up funding

Where do entrepreneurship opportunities begin?

• innovation

• improvement

• financing

• investment

Which of the following is a source of financing that entrepreneurs use to fund a new business?

• friends and family

• venture capital

• bank loan

• all of the above

A good example of an entrepreneur is a (n)

• firefighter

• waitress

• teacher

• owner of a bakery

Personal characteristics of successful entrepreneurs include

• aggression

• pessimism

• inquisitive

• recklessness

Small businesses are responsible for over 60% of new jobs.

• True

• False

Small businesses are responsible for more than half of the U.S. gross domestic product each year.

• True

• False

A small business is an independent business with fewer than ___ employees

• 5

• 20

• 100

• 500