Chapter 7: Small Business and Entrepreneurship

They believe that the actions of others can control their fate.

Which of the following statements is true of people with an external locus of control?

They have more scope to provide personal customer service than large businesses.

Which of the following statements is true of small businesses?

number of employees should range from fewer than 100 to 1,500.

According to the U.S. Small Business Administration (SBA), to officially count as a small business the:

lend all of a start-up's funding

Entrepreneurs must understand that no conventional lending source, whether private or government, will:

a high tolerance of uncertainty

Entrepreneurs who mortgage their homes for the business and stake their reputation on the success of an unproven product demonstrate:

Its sites are used to funds nonprofits.

In the context of funding options for small businesses, which of the following statements is true of crowdfunding?

A high level of employment protection

In the context of small businesses and the economy of a country, which of the following factors can bring down entrepreneurship rates?

It has less opportunity for creativity.

In the context of various launching options when starting a new business, which of the following statements is a drawback associated with buying a franchise?

entrepreneurs

People who risk their time, money, and other resources to start and manage a business are known as _____.

the logistics can be challenging

When starting a business from scratch, _____.

confidence

Which of the following is a characteristic of successful entrepreneurs?

It may entail inheriting the previous owner's mistakes.

Which of the following is a drawback of buying an established business?

They provide strong unemployment insurance to their citizens.

Which of the following is a reason why many members of the European Union have low entrepreneurship rates?

A bigger regulatory burden compared to large businesses

Which of the following is a threat to small businesses?

The entrepreneur gets to build his or her own business concept and structure.

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

flexible schedule

Which of the following is an appealing benefit that entrepreneurs enjoy?

Kickstarter.com

Which of the following is one of the largest crowdfunding sites in terms of traffic?

Venture capital firms

_____ are companies that invest in start-up businesses with high growth potential in exchange for a share of ownership.

Angel investors

_____ are individuals who finance start-up companies with high growth potential in exchange for a share of ownership.

Market niches

_____ are small segments of a market with fewer competitors than the market as a whole.

energy

_____ is a characteristic that most successful entrepreneurs possess.