business 101 Chapter 5

Minority-owned businesses represent __________ percent of all privately held firms.

17.6

Minority-owned firms are growing at a rate of ___ percent.

30

The SBA considers businesses with up to ____ employees to be small businesses.

500

Approximately ___ percent of new employer businesses fail within the first five years.

70

Approximately ____ percent of U.S. businesses are classified as small businesses.

99

____ is the process of creating and managing a business.

Entrepreneurship

A franchisee is a company that sells a franchise.

False

The __ is an independent agency of the federal government that offers managerial and financial assistance to entrepreneurs.

SBA

When the founder of a Massachusetts waste-disposal firm spent $16 million on a hazardous-waste incinerator project, believing that the project would benefit the environment and the community, despite local residents' objections, he may have had:

a poor business concept.

The ____ of the energy market and interest in alternative fuels has spawned many small businesses.

deregulation

An owner who uses personal assets to start a business is employing ____ financing.

equity

An organization that sells a license to use its products or name is a:

franchiser.

One of the attractive features of franchising is that:

franchisers have well-known names and products.

Few businesses make money:

from the start.

A business plan addresses how a business will achieve its ____.

goals

Initially, the factor that probably affects a company's reputation more than anything else is poorly managed:

growth.

Small businesses produce 55 percent of ____.

innovations

Franchising involves providing a(n) ____ to sell another's products, use another's name, or both.

license

Venture capitalists provide funds to a business in exchange for ____ interest.

ownership

The shortest path to failure in a small business is:

undercapitalization.