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WorksheetsCHAPTER 6 MINOR QUIZ TEST REVIEW
Total questions: 30
Worksheet time: 15mins
MOST SUCCESSFUL ENTREPRENEURS HAVE A HIGH TOLERANCE FOR UNCERTAINTY
True
False
THE AMERICAN PRIVATE ENTERPRISE SYSTEM ENCOURAGES RISK TAKING AND INNOVATION
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
PERSONAL CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS INCLUDE _______.
Persistence
Indecision
Laziness
Procrastination
Carelessness
NEARLY _____ PERCENT OF ALL AMERICANS AGED 18-64 ARE INVOLVED IN SOME TYPE OF ENTREPRENEURIAL ACTIVITY.
15%
5%
25%
40%
NEW BUSINESSES ARE OFTEN DISCONTINUED BECAUSE OF__________
LOW SALES, COMPETITIVE PRESSURE, HIGHER THAN EXPECTED EXPENSES
LACK OF TECHNOLOGY, RAPID GROWTH, LOW TAXES
HIGH PROFITS, STRONG CUSTOMER BASE, LOW COMPETITION
EASY ACCESS TO CAPITAL, LOW OPERATING COSTS, HIGH DEMAND
ACCORDING TO THE SMALL BUSINESS ADMINISTRATION, A SMALL BUSINESS IS AN INDEPENDENT BUSINESS WITH FEWER THAN _____ EMPLOYEES.
500
100
1000
50
SMALL BUSINESSES HAVE AN ADVANTAGE WHEN CUSTOMERS WANT MORE INDIVIDUAL ATTENTION
True
False
A DESIGNED CHANGE THAT INCREASES THE USEFULNESS OF A PRODUCT OR SERVICE?
IMPROVEMENT
DESTRUCTION
NEGLECT
OBSOLESCENCE
A GOVERNMENT AGENCY THAT HELPS ENTREPRENEURS DEVELOP BUSINESS PLANS AND OBTAIN FINANCING?
SBA
IRS
FDA
EPA
MONEY PROVIDED BY LARGE INVESTORS TO FINANCE NEW PRODUCTS AND NEW BUSINESS?
VENTURE CAPITAL
MICROFINANCE
CROWD FUNDING
ANGEL DONATION
A LARGE NUMBER OF SMALL BUSINESS IN THE U.S. ARE SERVICE BUSINESS
True
False
PRODUCTS OR RAW MATERIALS A BUSINESS KEEPS ON HAND?
INVENTORY
REVENUE
EXPENSES
ASSETS
__________ IS THE PROCESS OF STARTING, ORGANIZING, MANAGING, AND ASSUMING RESPONSIBILITY FOR A BUSINESS?
ENTREPRENEURSHIP
MARKETING
ACCOUNTING
FRANCHISING
INDEPENDENT BUSINESS WITH FEWER THAN 500 EMPLOYEES?
SMALL BUSINESS
CORPORATION
MULTINATIONAL
NON-PROFIT
GOVERNMENT AGENCY THAT HELPS SMALL BUSINESS OWNERS DEVELOP BUSINESS PLAN AND OBTAIN FINANCING AND OTHER SUPPORT FOR THEIR COMPANIES?
SMALL BUSINESS ADMINISTRATION
INTERNAL REVENUE SERVICE
DEPARTMENT OF LABOR
ENVIRONMENTAL PROTECTION AGENCY
SPECIFIC DESCRIPTION OF A SMALL BUSINESS INCLUDES THE FOLLOWING: DESCRIPTION OF A SMALL BUSINESS, SMALL BUSINESS EMPLOYMENT, AND OWNERSHIP DIVERSITY
True
False
WHICH POINTS CAN BE USED TO DESCRIBE A SMALL BUSINESS?
Owner is usually the manager; Business operates in one or very few locations; Business typically serves a small market; Business is not dominant in its field
Owner is always a large corporation; Business operates in multiple countries; Business serves a global market; Business dominates its field
Owner is never involved in management; Business operates only online; Business serves only government clients; Business is the largest in its industry
Owner is a celebrity; Business operates in entertainment venues; Business serves only VIP clients; Business is famous worldwide
COMMON REASON THAT SMALL BUSINESS HAVE FAILURE?
Not keeping adequate records; Not having enough start-up money; Lack of management experience; Lack of experience with the type of business; Not controlling operating expenses; Poor location for the business; Failure to manage credit offered to customers
Having too many employees; Excessive government support; Over-investment in technology; Too much customer demand
22. ACRONYM SBA STANDS FOR:
SMALL BUSINESS ADMINISTRATION
STATE BANK AUTHORITY
SOCIAL BENEFIT ASSOCIATION
SECURE BUSINESS AGREEMENT
SOMEONE WHO TAKES A RISK BY STARTING A BUSINESS TO TRY TO EARN A PROFIT?
ENTREPRENEUR
EMPLOYEE
CONSUMER
INVESTOR
INVENTION OR CREATION THAT IS BRAND NEW?
INNOVATION
TRADITION
IMPROVEMENT
REPLICATION
WHAT ARE THE 3 CHARACTERISTICS OF ENTREPRENEURS?
Desire to be your own boss; Special skills and abilities; Innovative ideas
High risk aversion; Preference for routine; Lack of ambition
Dependence on others; Dislike for change; Avoidance of responsibility
Limited creativity; Resistance to learning; Inflexibility
26. What does it take to be an entrepreneur?
Creativity and risk-taking
Avoiding challenges
Preferring routine tasks
Disliking innovation
Personal characteristics common to most successful entrepreneurs include:
Creativity and risk-taking
Laziness and indecisiveness
Avoidance of responsibility
Preference for routine tasks
28. The sources of financing that entrepreneurs use for their new business include:
Personal savings, loans, venture capital, and angel investors.
Only government grants.
Only crowdfunding platforms.
Only family and friends.
The primary reasons that businesses started by entrepreneurs close are:
Lack of market demand, poor management, insufficient capital, and competition
Excessive government support and subsidies
Too many customers and rapid growth
Overwhelming success and expansion
SUCCESSFUL ENTREPRENEURS HAVE MANY PERSONAL CHARACTERISTICS IN COMMON
(a)
