Principles of Business Chapter 5

Knowing about business only benefits you as an employee, not as a consumer.

• True

• False

A small business, as defined by the SBA, serves a limited geographic area and employs no more than 100 people.

• True

• False

A virtual business acts like a business, but is not a real business.

• True

• False

The main reason people become entrepreneurs is to have the opportunity to be creative.

• True

• False

Many successful entrepreneurs work in a related business before starting their own company.

• True

• False

Before you decide to start a particular business, you need to do market research to see if there is a demand for your product or service.

• True

• False

There are 10 essential parts of a business plan.

 

• True

• False

The executive summary of the business plan should be no more than two pages and should include the most important information from each section of the plan.

 

• True

• False

The vision and mission statements in the business plan state the guiding principles by which a business functions.

 

• True

• False

Entrepreneurship is the process of

• recognizing a business opportunity

• using market research to determine if there is a market for a product or service.

• gathering the resources needed to go into business.

• all of the these