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WorksheetsPOB Chapter 6: Entrepreneurship & Small Business Management
Total questions: 44
Worksheet time: 22mins
The process of starting , organizing, managing, and assuming the responsibility for a business is called capitalism.
True
False
Everyone who owns a business is an entrepreneur.
True
False
In the United States, nearly as many small businesses close as begin each year.
True
False
U.S. businesses with just a single owner and no staff account for over $600 billion in annual sales
True
False
All entrepreneurship opportunities emerge from inventions and innovations.
True
False
It is easier for a small business to meet the precise needs of customers than a large business.
True
False
Many small businesses fail simply because they are not located in the right spot.
True
False
The most important step in starting a business is preparation.
True
False
Once a business plan is written, it should never be revised and should never be updated.
True
False
The most popular use of business plans is to persuade lenders and investors to finance the venture.
True
False
Which of the following is probably the LEAST important factor in becoming an entrepreneur?
living in a major U.S. City
having special skills and abilities
having a real desire to be your own boss
developing a good initial business plan
In the United States, about how many women own their own businesses?
0.5 million
6 million
14 million
22 million
Successful entrepreneurs tend to have all of the following characteristics EXCEPT
energetic.
goal-oriented.
creative.
hesitant.
Entrepreneurs
must have a very low tolerance for ambiguity.
almost always own their first business while in their teens.
come from all age categories and educational backgrounds.
must have a business degree to be successful.
About how many new businesses are created in the U.S. every year?
0.7 million
6 million
14 million
22 million
Most of the money needed to start a new business comes from
the sale of stock.
credit given by businesses that sell products and services to the new business.
bank loans.
the entrepreneur and his/her family and friends.
Small businesses account for _____ of the U.S. gross domestic product each year.
about 10 percent
almost a quarter
more than half
about 75 percent
Giggles laundry detergent has been on the market for years. The manufacturer of Giggles recently added a new ingredient to give the detergent extra cleaning power. This is an example of an
improvement.
invention.
innovation.
opportunity cost.
Of all new businesses,
about one-third are profitable, one-third do not make a profit but continue to operate, and one-third lose money.
about three-quarters are profitable and one-quarter lose money.
about one-quarter are profitable and three-quarter lose money.
about one-half are profitable, one-quarter do not make a profit but continue to operate, and one-quarter lose money.
According to the Small Business Administration, a small business is an independent business with fewer than _____ employees.
10
50
100
500
Which of the following does NOT describe a typical small business?
The owner is usually the manager.
It is dominant in its field.
It serves a small market.
It operates in one or very few locations.
Small business owners
usually get direct information from their customers about what they like and dislike.
have less frequent contact with their customers than large businesses.
rely heavily on consumer research to gather information.
typically focus on products and services that meet the needs of a large group of customers.
Small businesses have an advantage over big businesses when customers
are willing to buy standard products.
want more individual attention.
prefer low cost and efficient delivery.
all of the choices listed
Location is important to small retail business because
most retailers need good customer traffic to survive.
many potential customers will stay away if the business is not easy to find.
customers general do not want to travel long distances to find what they need.
all of the choices listed
The most successful small business owners
establish good working relationships with professionals such as bankers, lawyers, and accountants.
have never worked for anyone else before.
do not need to choose employees carefully because they will be the ones giving orders.
understand that a written business plan is a waste of time and money.
Which element of a business plan discusses the entrepreneur's short-and long-term goals for the business?
financial plan
description of the competition
description of the business
customer analysis
Which of the following would NOT BE discussed in the operations plan section of a business plan?
organization of the company
sales forecasts
human resource plans
analysis of resources needed
If you start a new business, you need information about
competitors.
government regulations.
customers.
all of the choices listed
The first step in developing a business plan is to
identify alternative plans for production and marketing.
write the introductory section.
develop the "game plan."
gather and review information.
Short-term financing is obtained for a period of less than
three months.
three months.
one year.
two years.
Someone who takes a risk in starting a business to earn a profit is known as a(n)
administrator
entrepreneur
executive
inventor
Money provided by large investors to finance new products and new business that have a good chance to succeed is
working capital
investment capital
risk capital
venture capital
An invention or creation that is brand new is a(n)
experiment
improvement
innovation
investment
A designed change that increases the usefulness of a product, service, or process is called a(n)
experiment
improvement
innovation
investment
The majority of small business owners are
under 40 years old.
over 40 years old.
under 25 years old.
over 75 years old.
A U.S. government agency that helps small business owners obtain financing and other support for their companies is the
Small Business Administration (SBA)
U. S. Trade and Development Agency
Department of Housing and Urban Development
Service Corps of Retired Executives (SCORE)
Retired local business people who volunteer their service to counsel and mentor business business owners are known as
Small Business Administration (SBA)
Service Corps of Retired Executives (SCORE)
U. S. Department of Economic Development
U. S. Department of Agriculture
A business __________ is a written description of a business idea and how it will be carried out.
venture
activity
plan
development
Most business plans are developed for __________year(s).
one
two
five
ten
The amount of money needed to open a business is called __________financing.
innovative
venture
start-up
designated
Products or raw materials a business keeps on hand to do business are referred to as __________.
venture
start-up
inventory
premiums
Money needed to pay for the current operating activities of a business is referred to as __________________ financing.
long-term
short-term
absolute
venture
The source of owner-supplied money depends on the business's ownership structure. In a(n) __________, one person will supply the money.
partnership
proprietorship
corporation
franchise
__________ financing is money needed for the main resources of a business that will last for many years.
Long-term
Short-term
Absolute
Venture
