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WorksheetsSmall Business & Entrepreneurship chapter#5
Total questions: 28
Worksheet time: 14mins
Which of the following is NOT a role of small business in the American economy according to the slide?
Job creation
Innovation
Exporting
Market analysis
Which of the following industries is NOT listed as one that attracts small business?
Retailing and wholesaling
Services
Manufacturing
Agriculture
which industry is considered attractive to small businesses due to technological advancements?
Retailing and wholesaling
Services
Manufacturing
High Technology
Which of the following is NOT listed as an advantage of small business ownership?
Independence
Costs
Flexibility
Market Share
What is one of the advantages of small business ownership that can affect the personal satisfaction of the business owner?
Independence
Costs
Market Share
Economy of Scale
Which advantage of small business ownership can lead to a more personalized approach to customers?
Economy of Scale
Market Share
Focus
Costs
What percentage of new businesses fail within the first 5 years according to the slide?
50%
70%
90%
80%
Which of the following is NOT listed as a disadvantage of small-business ownership?
High Stress Level
Undercapitalization
Managerial Inexperience
Easy Work-Life Balance
What does undercapitalization refer to in the context of small-business ownership?
Excessive funds to operate a business
Lack of funds to operate a business normally
Poor management of business funds
High interest rates on business loans
Which disadvantage of small-business ownership is related to the skills and abilities of the management team?
High Stress Level
High Failure Rate
Managerial Inexperience or Incompetence
Inability to Cope with Growth
What does the disadvantage "Inability to Cope with Growth" imply for small-business owners?
They are unable to expand their business when necessary
They have too much capital to manage effectively
They lack the necessary technology for business operations
They have a high success rate in the market
Which of the following is NOT listed as a common mistake made by startup businesses?
Failing to spend enough time researching the business idea
Overestimating the ease of market entry
Lacking a contingency plan for a shortfall in expectations
Having a clear long-term aim and business purpose
What is considered a mistake regarding sales projections for startup businesses?
Projecting sales volume accurately
Overprojecting sales volume and timing
Underprojecting sales volume and timing
Ignoring sales volume and timing
Why might hiring for convenience be a mistake for small businesses?
It ensures the company has enough staff
It prioritizes skill requirements
It may lead to hiring people without the necessary skills
It is more cost-effective
What is a mistake small businesses make in terms of their vision, as mentioned in the slide?
Having a complex vision
Lacking simplicity in their vision
Changing their vision frequently
Having a vision that is too detailed
What is the first step in starting a small business according to the slide?
Devise a strategy to guide planning & development
Make decisions about the form of ownership
Start with a concept or general idea
Acquire an existing business
Which of the following is NOT one of the decisions to make when starting a small business?
Form of ownership
Financial resources needed
Type of business
Choosing a business location
Which of the following is a type of business one can start?
Buy a franchise
Sell a franchise
Merge with another business
Liquidate the business
What is the purpose of a Business Plan?
To outline the financial statements of a company
To provide a precise statement of the rationale for the business and a step-by-step explanation of how it will achieve its goals
To document the personal information of the business owners
To serve as a legal contract between the company and its employees
What does a Business Plan act as?
A legal document for taxation purposes
A resume for potential employees
A guide and reference document
A public advertisement
Which of the following is NOT typically included in a Business Plan?
Explanation of the business
Analysis of competition
Income/Expense estimates
Daily task schedules for employees
What is a method for providing your own personal capital for financial resources?
Debt financing
Venture Capitalists
Equity Financing
Line of credit
Which of the following is not a way to obtain capital?
Venture Capitalists
Selling stock in corporations
Equity Financing
Line of credit
What is franchising?
A method of doing business within a specific territory
A license to sell another's products or to use another's name in business, or both
A government permit to operate a new business
A business model where you create all products from scratch
Which of the following is an advantage of owning a franchise?
Fees and profit sharing
Standardized operations
Restrictions on purchasing
Greater chance for success
What is considered a disadvantage of franchising?
Brand name appeal
National advertising
Financial assistance
Limited product line
What aspect of franchising can help a business with its marketing efforts?
Fees and profit sharing
National advertising
Possible market saturation
Less freedom in decisions
Which of the following is not an advantage of franchising?
Training & support
Proven products
Fees and profit sharing
Financial assistance
