Chapter 6 Intro to Business

someone who takes a risk in starting a business to earn a profit.

• entrepreneur

• engineer

• innovator

• entrepreneurship

a designed change that increases the usefulness of a product, service, or process.

• innovation

• improvment

• processes

an independent business with fewer than 500 employees.

• innovation

• small business

• venture capital

• small business association

money provided by large investors to finance new products and new businesses that have a good chance to be very profitable.

• venture capital

• innovation

• improvement

• business plan

money needed for the main resources of a business (such as land, buildings, and equipment) that will last for many years.

• business plan

• start up financing

• long term financing

• short term financing

Which of the following is not a characteristic of enterpreneurship in the Unite States?

• About 27 percent of job growth coes from businesses with less than 20 employees.

• About 500,000 new businesses are created each year.

• About 3 percent of people aged 18-64 are involved in enterpreneurship activity.

• One in every ten Americans has invested in a business of someone who they know well.

True or False...everyone who owns or manages a business is an entrepreneur.

• true

• false

The Small Business Administration considers a business small if it employs fewer than _____ employees.

a. 5

b. 20

c. 100

d. 500

• 500

• 100

• 20

• 5

A competitive advantage that small businesses have over larger businesses is

• lower costs

• more consumer research

• lower prices

• attention to unique customer needs

Which of the following is not one of the reasons small businesses fail?

a. poor customer credit practices

b. the owner does not have the adequate experience

c. a poor business location

d. not enough employees to do the work

• poor customer credit practices

• the owner does not have the adequate experience

• a poor business location

• not enough employees to do the work