Chapter 6 Small Business Basics Quiz

What percentage of job growth comes from businesses with fewer than 20 employees?

• 20.1%

• 24.9%

• 36.3%

What are the sources of financing that entrepreneurs use for their new businesses?

• A loan

• Credit

• Start-up funding

• Venture capital

What do innovation, invention, and improvement have to do with entrepreneurship opportunities?

• Creating new products and services

• Developing new marketing strategies

• Expanding into international markets

• Improving customer service

What percentage of small businesses are home-based businesses?

• 75%

• 90%

• 50%

• 25%

What is the primary reason that businesses started by entrepreneurs close?

• Higher than expected expenses

• Lack of adequate capital

• Low sales

• Competitive pressure

What is the definition of a small business according to the Small Business Administration?

• Fewer than 50 employees

• Fewer than 100 employees

• Fewer than 1000 employees

• Fewer than 500 employees

What is the percentage of small businesses with African-American, Asian-American, or Hispanic-American ownership?

• 15%

• 10%

• 17%

• 5%

What is the average amount needed to start a part-time home-based small business?

• $10,000 or more

• $5,000 or less

• $7,500

• $20,000

What percentage of all private sector employees are employed by small businesses?

• 90%

• 80%

• 60%

• 40%

What is the most common type of small business?

• Construction

• Service

• Retail

• Manufacturing