PBMF-Chapter 6 review
_____ are made up of the products or raw materials a business has on hand.
Inventories
Members of the _____ are retired business people who volunteer their services to help new business owners.
Service Corps of Retired Executives
_____ financing is the money needed to pay for the current operating activities of a business.
Short-term
You will likely pay more for a product or service from a small company than from a large one.
True
_____ is money provided by large investors to finance new products and new businesses that have a good chance to be very profitable.
Venture capital
Roughly what percentage of new jobs are created by businesses with fewer than 500 employees?
80 percent
Each of the following is a main section of a business plan except _____
Employee Responsibilities
According to the Small Business Administration (SBA), a small business is one with 100 or fewer workers.
False
Business owners who are looking for investors to finance a new company must prepare a business plan, but a business plan is not necessary if the owners do not need outside help.
False
Most young entrepreneurs are female.
False
There is little evidence that developing a business plan has any impact on whether a new business fails or succeeds.
False
Approximately half of all small businesses are home-based businesses
True
Before a business owner completes the business plan, he or she should ask business experts to review the plan.
True
Entrepreneurship is risky.
True
Entrepreneurship is the process of starting, organizing, managing, and assuming the responsibility for a business.
True
A(n) _____ is an invention or creation that is brand new.
innovation
A _____ business should locate in an area with access to raw materials and transportation systems.
manufacturing
Many small businesses have an advantage over larger businesses because they are better able to _____.
provide unique services to customers
What is the most common type of small business, making up about 14.5 percent of all small businesses?
retail trade
Which of the following is not a common reason for the failure of small businesses?
shortage of skilled workers