Intro to Business Chapter 6 Review

If you start a new business, you need information about

all of the above

Location is important to small retail businesses because

all of the above

Short term financing is obtained for a period of less than

one year

In the United States, women own close to this percentage of small business.

35 percent

According to the Small Business Administration, a small business is an independent business with fewer than ____ employees.

500

More than ________________ new businesses are created in the United States every year

500 thousand

An ____________ is someone who takes a risk in starting a business to earn a profit.

Entrepreneur

All entrepreneurship opportunities emerge from inventions and innovations

False

Everyone who owns a business is an entrepreneur

False

Once a business plan is written, it should never be revised and should never be updated.

False

The process of starting, organizing, managing, and assuming the responsibility for a business is called capitalism.

False

A designed change that increases the usefulness of a product, service, or process is called an _________________.

Improvement

An _________ is an invention or creation that is brand new

Innovation

Products or raw materials a business keeps on hand to do business are referred to as ____________.

Inventory

Which of the following does NOT describe a typical small business?

It is dominant in its field

If the business owner needs help from others, especially for financing the new business, a business plan usually will be required.

True

In the United States, nearly as many small businesses close as begin each year.

True

It is easier for a small business to meet the precise needs of customers than a large business.

True

Many small businesses fail simply due to their location

True

The most important step in starting a business is preparation.

True

US businesses with just a single owner and no staff account for more than $990 billion in annual sales.

True

The small business _________________ is a US government agency that helps small business owners obtain financing and other support for their companies.

administration

Of all new businesses,

about one-third are profitable, one-third do not make a profit but continue to operate, and one-third lose money

Entrepreneurs

come from all age categories and educational backgrounds

Most business plans are developed for _______ year

one

Which element of a business plan discusses the entrepreneurs short and long term goals for the business?

description of the business

The most successful small business owners

establish good working relationships with professionals such as bankers, lawyers, and accountants

Members of the service corps of retired ___________ are retired local business people who volunteer their services to counsel and mentor new business owners

executives

The first step in developing a business plan is to

gather and review information

Successful entrepreneurs tend to have all of the following characteristics EXCEPT

hesistant

Almost all people starting small businesses have graduated from_______________.

high school

Scrubbles laundry detergent has been on the market for years. The manufacturer of Scrubbles recently added a new ingredient to give the detergent extra cleaning power. This is an example of an

improvement

Which of the following is probably the LEAST important factor in becoming an entrepreneur?

living in a major US city

_______________ financing is money needed for the main resources of a business that will last for many years.

long term

Small businesses account for ____ of the U.S. gross domestic product each year.

more than half

Most of the money needed to start a new business comes from

personal and business loans

A business ________ is a written description of a business idea and how it will be carried out.

plan

The source of owner-supplied money depends on the business's ownership structure. In a(n) _____, one person will supply the money.

proprietorship

Which of the following would NOT be discussed in the operations plan section of a business plan?

sales forecasts

Money needed to pay for the current operating activities of a business is referred to as _________________ financing.

short term

The amount of money needed to open a business is called ______ financing

start up

Small business owners

usually get direct info from their customers about what they like and dislike

_____________ capital is money provided by large investors to finance new products and new business that have a good chance to succeed.

venture

Small business have an advantage over big businesses when customers

want more individual attention