WorksheetsBP Ch. 6 Test
Total questions: 35
Worksheet time: 1hrs 10mins
Most successful entrepreneurs have a low tolerance for with dealing with people.
True
False
If you fail at your first business, do you give up?
No
Yes
Most of the money needed to start a new business comes from the entrepreneur and his or her family and friends.
True
False
Innovative products are new products that no one has seen before.
True
False
Most Americans are employed by a small business.
True
False
A large number of small businesses in the United States are service businesses.
True
False
Many small businesses fail simply because the owners do not keep adequate records
True
False
It is not wise to start a new business when demand for the product or service you plan to sell is high, because already-established companies will have a clear advantage over you.
True
False
The most important step in starting a business is developing confidence.
True
False
The first step in developing a business plan is to gather and review information.
True
False
A good example of an entrepreneur is a(n)
a police officer
UPS delivery driver
gift shop owner
customer service rep
Personal characteristics of successful entrepreneurs include
persistence
recklessness
greed
pessimism
Financing used to pay for starting the business, current operating costs, purchasing a building of the business
start up
short term
long term
all of the above
New businesses are often discontinued because of
low sales
competitive pressure
higher than expected expenses
all of the above
According to the Small Business Administration, a small business is an independent business with fewer than ___ employees.
500
100
50
10
Successful entrepreneurs have many personal characteristics.
True
False
Small businesses
must focus on products and services that meet the needs of as large a group of customers as possible
have an advantage when customers want more individual attention
are generally forced to sell products and services at lower prices than large businesses to compete effectively
all of the above.
Business ideas can come from
books and magazines
business experiences
hobbies and interests
all of the above
The business idea, ownership structure, and the business’s long-term goals are discussed in this section of a business plan
financial plan
marketing plan
operations plan
description of the business
Most business plans are updated
every six months
annually
every five years
whenever the business hires a new employee
A designed change that increases the usefulness of a product or service
operations plan
improvement
Small Business Administration
venture capital
A government agency that helps entrepreneurs develop business plans and obtain financing.
operations plan
improvement
Small Business Administration
venture capital
Money provided by large investors to finance new products and new businesses.
operations plan
improvement
Small Business Administration
venture capital
The part of a business plan that discusses sales forecasts and the location and number of potential patrons
long term financing
customer analysis
Service Corps of retired executives
innovation
Money needed for the main resources of a business that will last for many years.
long term financing
customer analysis
Service Corps of retired executives
innovation
A group of retired local businesspeople who volunteer their services to counsel and mentor new business owners.
long term financing
customer analysis
Service Corps of retired executives
innovation
An invention or creation that is brand new.
long term financing
customer analysis
Service Corps of retired executives
innovation
The part of a business plan that discusses the organization of the company and describes its major operations.
operations plan
inventory
short term financing
long term financing
Products or raw materials a business keeps on hand.
operations plan
inventory
short term financing
long term financing
Money needed to pay for the current operating activities of a business.
operations plan
inventory
short term financing
long term financing
What percentage of U.S. small businesses are owned by women?
about 75%
more than 50% or more than half
more than 33% or more than 1/4
close to 10%
_____________ is the process of starting, organizing, managing, and assuming responsibility for a business.
Entrepreneurship
Investing
Working
Skill master
A written description of a business idea and how it will be carried out is called ____________
Investing plan
Business plan
Retail trade
Business trade
_________financing is the money needed to open a new business.
business
short term
long term
start up
Most new business owners obtain start-up money to finance their business from banks.
True
False
