BUS 101: Chapter 7 Practice Quiz

Which of the following statements is true of buying an established business?

Getting financing and credit is less challenging than when starting a business from scratch

_____ is the process of funding ventures by raising money from a large number of investors via the Internet.

Crowdfunding

Which of the following statements is true of starting a business from scratch?

It is hard to get credit from both lenders and suppliers

In the context of funding options for small businesses, which of the following offers a potential funding source for new business start-ups?

Peer-to-peer lending

Small firms tend to be effective innovators for a number of reasons. Most importantly, their very reason for being often ties to:

a brand-new idea

Which of the following is an advantage of starting a business from scratch?

You do not have to deal with a prior owner's bad decisions

In the context of opportunities and threats, overhead costs for small businesses:

are often lower than big companies.

Beyond the sheer value of the goods and services they generate, small businesses make a powerful contribution to the U.S. economy in terms of:

creating new jobs

According to small business experts, while raising start-up funds from friends and relatives, it is:

essential to keep the relationship as professional as possible

People with an external locus of control:

feel buffeted by forces such as random luck

Technological tools such as the Internet and email have:

made it easy for small business owners to manage their firms on the go

In low-income countries, a high percentage of entrepreneurs are considered _____.

necessity entrepreneurs