Learning Objectives

Examine common reasons for small-business failure.

• Lack of capital

• Poor management

• Inadequate marketing

• All of the above

The importance of a business plan is to:

• provide a roadmap for the business

• increase the business's social media presence

• ensure immediate profitability

• eliminate all business risks

Entrepreneurs can use various methods to finance their small business. Which of the following is a common method?

• Personal savings

• Astrology

• Gambling

• None of the above

Small businesses can take advantage of global markets by:

• expanding their online presence

• focusing only on local markets

• ignoring international trends

• reducing product quality

What is the Small Business Administration (SBA)?

• A private company that invests in small businesses

• A government agency that assists, counsels, and protects the interests of small businesses in the United States

• A non-profit organization supporting small businesses worldwide

• A local business association

According to a recent study by the U.S. Small Business Administration, what fraction of businesses launched between 1994 and 2018 survived at least two years?

• One-third

• Half

• Two-thirds

• Three-quarters

What percentage of total U.S. private payroll is paid by small businesses?

• 50%

• 30%

• 70%

• 90%

What is a reason for people to go into business according to researchers?

• To achieve personal satisfaction

• To gain financial independence

• To follow a passion

• To contribute to society

Which characteristic is associated with entrepreneurs?

• A) Entrepreneurial spirit

• B) Dependence

• C) Lack of ambition

• D) Disregard for family background

One of the reasons people choose to become entrepreneurs is:

• financial independence

• job security

• fixed working hours

• limited responsibility