Entrepreneurship and Small Business Management
A competitive advantage that small businesses have over larger businesses is a) lower costs b) more consumer research c) lower prices d) attention to unique customer needs
d) attention to unique customer needs
Which of the following is not one of the reasons small business fail? a) poor customer credit practices b) the owner does not have adequate experience c) a poor business location d) not enough employees to do the work
d) not enough employees to do the work
Start-up Financing
Amount of money needed to open the business
Innovation
An invention or creation that is brand new
Small Business
Independent business with fewer than 500 employees
Small Business Administration (SBA)
Government agency that helps small business owners develop business plans and obtain financing and other support for their companies
Long-term Financing
Money needed for the main resources of a business (such as land, building, and equipment) that will last for many years
Short-term Financing
Money needed to pay for the current operating activities of a business
Venture Capital
Money provided by large investors to finance new products and new businesses that have a good chance to be very profitable
Entrepreneurship
Process of starting, organizing, managing, and assuming the responsibility for a business
Entrepreneur
Someone who takes a risk in starting a business to earn a profit
True or False. Entrepreneurs are competitive, creative, energetic, goal oriented, independent, inquisitive, persistent, reliable, and self-confident
True
True or False. Entrepreneurs have the ability to partner, ability to secure resources, ability to spot opportunity, capability to learn from failure, personal initiative, problem-solving skills, strong integrity, tolerance for ambiguity, willingness to work hard
True
True or False. A business plan does not have to be written because the business owner is well aware of the information in the plan
False
True or False. Everyone who owns or manages a business is an entrepreneur
False
True or False. Most small business owners enjoy being part of a team
False
Improvement
Designed change that increases the usefulness of a product, service, or process
Business Plan
Written description of the business idea and how it will be carried out, including all major business activities
Money needed for the important resources of a business (such as land, buildings, and equipment) that will last for many years is called a) start-up financing b) short-term financing c) long-term financing d) credit
a) start-up
Every business begins with a(n) a) customer b) profit c) idea d) invention
c) idea
Money provided by large investors to finance new products and new businesses that have a good chance to be very profitable is know as a) a loan b) credit c) venture capital d) start-up funding
c) venture capital
The Small Business Administration considers a business small if it employs fewer than ______ employees a) 5 b) 20 c) 100 d) 500
d) 500
