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Principles of Business Chapter 5

Total questions: 36

Worksheet time: 35mins

Name
Class
Date
1.

Knowing about business only benefits you as an employee, not as a consumer.

a)

True

b)

False

2.

A small business, as defined by the SBA, serves a limited geographic area and employs no more than 100 people.

a)

True

b)

False

3.

A virtual business acts like a business, but is not a real business.

a)

True

b)

False

4.

The main reason people become entrepreneurs is to have the opportunity to be creative.

a)

True

b)

False

5.

Many successful entrepreneurs work in a related business before starting their own company.

a)

True

b)

False

6.

Before you decide to start a particular business, you need to do market research to see if there is a demand for your product or service.

a)

True

b)

False

7.

There are 10 essential parts of a business plan.

 

a)

True

b)

False

8.

The executive summary of the business plan should be no more than two pages and should include the most important information from each section of the plan.

 

a)

True

b)

False

9.

The vision and mission statements in the business plan state the guiding principles by which a business functions.

 

a)

True

b)

False

10.

Entrepreneurship is the process of

a)

recognizing a business opportunity

b)

using market research to determine if there is a market for a product or service.

c)

gathering the resources needed to go into business.

d)

all of the these

11.

A new business undertaking that involves risk is called a

a)

venture

b)

small business

c)

virtual business

d)

dot-com company.

12.

All of the following are recommended traits for a career in entrepreneurship except being

a)

enthusiastic

b)

cost-conscious

c)

a risk-taker

d)

goal-oriented

13.

A virtual business is a business that

a)

is almost a business

b)

operates on street corners only

c)

operates on the Internet

d)

does not use money in any transactions

14.

Most U.S. businesses are

a)

virtual businesses

b)

successful

c)

corporations

d)

sole proprietorships

15.

One of the biggest obstacles in starting a business is

a)

obtaining financing

b)

having a good idea

c)

being good at something.

d)

accepting responsibility

16.

A written description of a business venture that describes all aspects of the business is called

a)

a company charter

b)

a company policy

c)

a business plan

d)

an executive summary

17.

A business plan is used by

a)

potential investors to see if they want to invest in the business

b)

top management involved in the start-up of a new business.

c)

the entrepreneur to keep focused on the goals of the business.

d)

All of these

18.

The company description section of a business plan helps investors understand

a)

the size of the business

b)

the scope of the business

c)

the type of business

d)

all of the these

19.

A vision statement

a)

expresses the specific aspirations of the company

b)

establishes the scope and purpose of the company

c)

includes the major goals that the company will try to reach

d)

explains why the venture will succeed

20.

In a business plan, research about the business’s customers is included in the

a)

competitive analysis

b)

marketing plan

c)

market analysis

d)

operational plan

21.

A brief account of the key points contained in a business plan is the

a)

executive summary

b)

company description

c)

vision statement

d)

mission statement

22.

All of the following are examples of an industry except

a)

medical supply companies

b)

financial service firms

c)

auto mechanics

d)

food service businesses

23.

In a business plan, the description of the business’s media plan is included in the

a)

marketing plan

b)

product and service plan

c)

vision statement

d)

competitive analysis

24.

SBA is an acronym that stands for the

a)

Start-Up Business Administration

b)

Small Business Administration

c)

Small Businesses Agency

d)

Small Businesses of America

25.

26.       A       is a new business undertaking that involves risk.

 

(a)  

26.

Unlike people who run corporations and partnerships, (a)   do not have to consult with others before making a decision

27.

A  (a)   is owned and run by two or more people

28.

About four out of five businesses fail in their first (a)   years

29.

To determine if there is a demand for your product or service, you must do (a)  

30.

Match the following

a)

entrepreneur

1.

A person who organizes, manages, and assumes the risks of starting and operating a business

b)

small business

2.

An independently owned business that usually has the owner as its manager

c)

virtual business

3.

A business that operates on the Internet

d)

significant

4.

Having a special meaning or importance

e)

business plan

5.

A written description of a new business venture that describes all aspects of the business

31.

Match the following

a)

executive summary

1.

A brief account of the key points contained in a business plan

b)

vision statement

2.

A statement that establishes the scope and purpose of a company and reflects its values and beliefs

c)

mission statement

3.

A statement that expresses the specific aspirations of a company

d)

concept

4.

A general idea

e)

venture

5.

A new business undertaking that involves risk

32.

List five of the 12 personal characteristics of successful entrepreneurs.

4 lines
33.

List five (5) rewards for entrepreneurship.

4 lines
34.

List three (3) challenges of entrepreneurship.

4 lines
35.

List three (3) questions to be included in the checklist for starting a venture

4 lines
36.

What is in the contingency plan portion of the business plan?

4 lines