Chapter 7- Small Business and Entrepreneurship

In response to economic conditions, employment in small businesses

declines when the economy is doing well and increases when the economy struggles.

An organization where the liability of the business owners is limited to the full, paid-up value of the share capital is referred to as a

limited liability

Industries with a high concentration of small businesses generally require

little investment capital up front

The section of the business plan that states how a company will sell and communicate to its potential customers and suppliers is described in the

marketing and sales management section.

Which of the following characteristics is NOT conducive with entrepreneurial drive?

risk adversity

According to the U.S. Small Business Administration, what percentage of businesses fail within the first four years of launching?

56%

New technologies are allowing more women and young people to start businesses. This is mainly because

All of these answers.

Entrepreneurs can increase their odds of success by avoiding which of the following drawbacks when starting a small business?

Failing to set aside cash reserves that can be used during economic downturns

Successful small business owners often need a high level of ___________, due to the high likelihood of drawbacks and failure.

Perseverance

Which of the following is an example of external financing?

Venture capital investing

Which demographic has seen a great deal of recent growth in entrepreneurial areas?

Women

Small businesses often face a variety of problems related to their size because they

are often vulnerable to undercapitalization.