WorksheetsPBMF Chapter 6 Review
Total questions: 29
Worksheet time: 10mins
Short-term financing is obtained for a period of less than
2 years
1 year
3 months
6 months
If you start a new business, you need information about:
customers
competitors
government regulations
all of these
Which element of a business plan discusses the entrepreneur's short- and long-term goals for the business?
customer analysis
financial plan
description of the competition
description of the business
Location is important to small retail businesses because
customers generally do not want to travel long distances to find what they need.
many potential customers will stay away if the business isn't easy to find.
most retailers need good customer traffic to survive.
all of the above
Small business owners
usually get direct information from their customers about what they like and dislike.
typically focus on products and services that meet the needs of a large group of customers.
rely heavily on consumer research to gather information.
have less frequent contact with their customers than large businesses.
According to the Small Business Administration, a small business is an independent business with fewer than ____ employees.
50
10
100
500
Scrub-a-Dub laundry detergent has been on the market for years. The manufacturer of Scrub-a-Dub recently added a new ingredient to give the detergent extra cleaning power. This is an example of an
innovation
opportunity cost
improvement
invention
Most of the money needed to start a new business come from
the sale of stock.
personal and business loans.
the entrepreneur and his/her family and friends.
credit given by businesses that sell products and services to the new business.
Entrepreneurs
almost never own their first business while in their teens.
must have a degree to be successful.
must have very low tolerance for ambiguity.
come from all age categories and educational back grounds.
In the US, women own close to this percentage of small businesses.
25%
75%
35%
50%
If the business owner needs help from others, especially for financing the new business, a business plan isn't really required.
True
False
The least important step in starting a business is preparation.
True
False
It's easier for a small business to meet the precise needs of customers than a large business.
True
False
US businesses with just a single owner and no staff account for more than $900 in annual sales.
True
False
Everyone who owns a business is an entrepreneur.
True
False
The process of starting, organizing, managing, and assuming the responsibility for a business is called capitalism.
True
False
In the US, nearly as many small businesses close as begin each year.
True
False
Many small businesses fail, but it's never because of their location.
True
False
Once a business plan is written, it is normal to be revised and updated.
True
False
Which of the following is probably the LEAST important factor in becoming an entrepreneur?
having a real desire to be your own boss.
having special skills and abilities.
living in a major US city.
developing a good initial business plan.
Successful entrepreneurs tend to have all of the following characteristics EXCEPT
hesitant.
goal-oriented.
energetic.
creative.
More than ____ new businesses are created in the US every year.
2 million
750 thousand
1 million
500 thousand
Small businesses account for _____ of the US gross domestic product each year.
almost a quarter
about 75 percent
more than half
about 10 percent
Of all new businesses,
about one-quarter are profitable and three-quarters lose money.
about one-half are profitable, one-quarter don't make a profit but continue to operate, and one-quarter lose money.
about one-third are profitable, one-third don't make a profit but continue to operate, and one-third lose money.
about three-quarters are profitable and one-quarter lose money.
Which of the following does NOT describe a typical small business?
It serves a small market.
It operates in one or very few locations.
It is dominant in its field.
The owner is usually the manager.
Small businesses have an advantage over big businesses when customers
are willing to buy standard products.
prefer low cost and efficient delivery.
want more individual attention.
all of the above.
The most successful small business owners
understand that a written business plan is a waste of time and money.
have never worked for anyone else before.
do not need to choose empolyees carefully because they will be the ones giving orders.
establish good working relationships with professionals such as bankers, lawyers, and accountants.
Which of the following would NOT be discussed in the operations plan section of a business plan?
sales forecasts
human resource plan
analysis of resources needed
organization of the company
The first step in developing a business plan is to
write the introductory section.
gather and review information.
identify alternative plans for production and marketing.
develop the "game plan".
