Transcript Ch. 6 practice test

True/False #1
 Many entrepreneurs own their first
business while in their teens.
#2 T/F
 A large number of small businesses in
the US are service businesses
#3 T/F
 The first step in developing a business
plan is to gather and review
information.
#4 T/F
 Most American are employed by a
small business
#5 T/F
 The most important step in starting a
business is developing confidence
#6 T/F
 Most successful entrepreneurs have a
low tolerance for ambiguity.
#7 T/F
Most of the money needed to start
a new business comes from the
entrepreneur and his or her family
and friends.
#8 T/F
Many small businesses fail simply
because the owners do not keep
adequate records
#9 T/F
The American private enterprise
system discourages risk-taking and
innovation.
#10 T/F
 It is not wise to start a new business
when demand for the product or
services you plan to sell is high,
because already-established companies
will have a clear advantage over you.
Multiple choice #1
New businesses are often
discontinued because of
Low sales
Competitive pressure
Higher than expected expenses
All the above
MC #2
 A good example of an entrepreneur is
 Police officer
 Gift shop owner
 Checkout clerk at Target
 UPS delivery driver
MC #3
Business ideas can come from
Books and magazines
Business experiences
Hobbies and interests
All above
MC #4
Personal characteristics of
successful entrepreneurs include
Persistence
Recklessness
Greed
Pessimism
MC #5
 Nearly ______ percent of all Americans
aged 18-64 is involved in some type of
entrepreneurial activity
5
 25
 10
 50
#6 MC
What % of US small businesses are
owned by women?
About 75
Almost 50
More than 25
Close to 10
#7 MC
 Small businesses
 Must focus on products and services that meet
the needs of a large 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
#8 MC
 According to the SBA a small business
is an independent business with fewer
than_____ employees
 500
 50
 100
 10
#9 MC
 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
#10 MC
 Most business plans are updated
 Every six months
 Annually
 Every five years
 Whenever the business hires a new employee
Matching
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Innovation
Small Business Administration
Customer analysis
Short-term financing
Long-term financing
Inventory
Venture capital
Description of competition
Improvement
Service Corps of Retired Executives
Matching #1
 The part of a business plan that
discusses sales forecasts and the
location and number of potential
patrons.
Matching #2
 A designed change that increases the
usefulness of a product or service.
Matching #3
Products or raw materials a
business keeps on hand.
Matching #4
An invention or creation that is
brand new.
Matching #5
Money needed to pay for the
current operating activities of a
business.
Matching #6
A government agency that helps
entrepreneurs develop business
plans and obtain financing.
Matching #7
A group of retired local
businesspeople who volunteer their
services to counsel and mentor new
business owners.
Matching #8
Money provided by large investors
to finance new products and new
businesses.
Matching #9
The part of a business plan that
discusses the industry
characteristics and the condition of
the economy
Matching #10
Money needed for the main
resources of a business that will last
for many years.
Fill in the blank #1
A written description of a business
idea and how it will be carried out.
Fill in the blank #2
Small businesses are responsible
for ___________ percent of the US
GDP each year.
Fill in the blank #3
__________________ is the amount
of money needed to open a
business.
Fill in the blank #4
Professional, scientific, and
_______________ services account
for the largest percentage of small
businesses in the US.
Fill in the blank #5
_______________ is the process of
starting, organizing, managing,
and assuming the responsibility for
a business.