WorksheetsIntro to Business: Ch. 6 Test Review
Total questions: 37
Worksheet time: 19mins
Name
Class
Date
1.
In the United States, nearly as many small businesses close as begin each year.
a)
True
b)
False
2.
All entrepreneurship opportunities emerge from inventions and innovations.
a)
True
b)
False
3.
It is easier for a small business to meet the precise needs of customers than a large business.
a)
True
b)
False
4.
Many small businesses fail simply because they are not located in the right spot.
a)
True
b)
False
5.
The most important step in starting a business is preparation.
a)
True
b)
False
6.
The most popular use of business plans is to persuade lenders and investors to finance the venture.
a)
True
b)
False
7.
Which of the following is probably the LEAST important factor in becoming an entrepreneur?
a)
living in a major US city
b)
having special skills & abilities
c)
having a real desire to be your own boss
d)
developing a good initial business paln
8.
Successful entrepreneurs tend to have all of the following characteristics EXCEPT
a)
energetic
b)
goal-oriented
c)
creative
d)
hesitant
9.
Entrepreneurs
a)
must have a very low tolerance for ambiguity
b)
almost never own their first business while in their teens
c)
come from all age categories and educational backgrounds
d)
must have a business degree to be successful.
10.
Most of the money needed to start a new business comes from
a)
the sale of stock
b)
credit given by businesses that sell products & services to the new business
c)
bank loans
d)
the entrepreneur and his/her family & friends
11.
Small businesses account for __ of the US gross domestic product each year.
a)
almost 10%
b)
almost a quarter
c)
more than half
d)
about 75%
12.
Scrubbles laundry detergent has been on the market for years. The manufacturer of Scrubbles recently added a new ingredient to give the detergent extra cleaning power. This is an example of an
a)
improvement
b)
invention
c)
innovation
d)
opportunity cost
13.
Of all new businesses,
a)
about 1/3 are profitable, 1/3 do not make a profit but continue to operate, and 1/3 lose money.
b)
about 1/2 are profitable, 1/4 do not make a profit but continue to operate, and 1/4 lose money.
c)
about 3/4 are profitable and 1/4 lose money
d)
about 1/4 are profitable and 3/4 lose money
14.
Which of the following does NOT describe a typical small business?
a)
the owner is usually the manager.
b)
It is dominant in its field.
c)
It serves a small market.
d)
It operates in one or very few locations.
15.
Small business owners
a)
usually get direct info from their customers about what they like & dislike.
b)
have less frequent contact with their customers than large businesses.
c)
rely heavily on consumer research to gather information
d)
typically focus on products and services that meet the needs of a large group of customers.
16.
Small businesses have an advantage over big businesses when customers
a)
are willing to buy standard products.
b)
want more individual attention.
c)
prefer low cost and efficient delivery.
d)
all of the above.
17.
Location is important to small retail businesses because
a)
most retailers need good customer traffic to survive.
b)
many potential customers will stay away if the business is not easy to find.
c)
customers generally do not want to travel long distances to find what they need.
d)
all of the above.
18.
The most successful small business owners
a)
establish good working relationships with professionals such as bankers, lawyers, and accountants.
b)
have never worked for anyone else before.
c)
do not need to choose employees carefully because they will be the ones giving orders.
d)
understand that a written business plan is a waste of time and money.
19.
Which element of a business plan discusses the entrepreneur's short- and long-term goals for the business.
a)
financial plans
b)
description of the competition
c)
description of the business
d)
customer analysis
20.
Which of the following would NOT be discussed in the operations plan section of a business plan?
a)
organization of the company
b)
sales forecasts
c)
human resources plans
d)
analysis of resources needed
21.
If you start a new business, you need information about
a)
competitors
b)
government regulations
c)
customers
d)
all of the above
22.
The first step in developing a business plan is to
a)
identify alternative plans for production & marketing.
b)
write the introductory section.
c)
develop the "game plan."
d)
gather and review information.
23.
Short-term financing is obtained for a period of less than
a)
three months
b)
six months
c)
one year
d)
two years
24.
A(n) __ is someone who takes a risk in starting a business to earn a profit.
a)
entrepreneur
b)
executive
c)
proprietorship
d)
administration
25.
__ capital is money provided by large investors to fiance new products and new business that have a good chance to succeed.
a)
Venture
b)
Executive
c)
start-up
d)
improvement
26.
A(n) __ is an invention or creation that is brand new.
a)
innovation
b)
improvement
c)
inventory
d)
proprietor
27.
A design change that increases the usefulness of a product, service or process is called a(n)
a)
improvement
b)
innovation
c)
inventory
d)
intermediate
28.
Almost all people starting small businesses have graduated from ___.
a)
high school
b)
college
c)
graduate school
d)
The Forbes School of Business.
29.
The Small Business ____ is a US government agency that helps small business owners obtain financing and other support for their companies.
a)
Administration
b)
Association
c)
Committee
d)
Corporation
30.
Members of the Services Corps of Retired ___ are retired local business-people who volunteer their services to counsel and mentor new business owners.
a)
Executives
b)
Administrations
c)
Proprietors
d)
Parnters
31.
A business ___ is a written description of a business idea and how it will be carried out.
a)
plan
b)
report
c)
inventory
d)
improvement
32.
Most business plans are developed for __ years.
a)
one
b)
two to five
c)
ten
d)
fifteen
33.
The amount of money needed to open a business is called ___ financing.
a)
start-up
b)
initital
c)
inventory
d)
proprietor
34.
Products or raw materials a business keeps on hand to do business are referred to as ___.
a)
inventory
b)
invention
c)
innovation
d)
funds
35.
Money needed to pay for the current operating activities of a business is referred to as ____ financing.
a)
short-term
b)
long-term
c)
variable
d)
short-hand
36.
The source of owner-supplied money depends on the busienss's ownership structure. In a(n) ___, one person will supply the money.
a)
proprietorship
b)
partnership
c)
corporation
d)
venture
37.
___ financing is money needed for the main resources of a business that will last for many years.
a)
short-term
b)
long-term
c)
start-up
d)
inventory
100 %
