Chapter 6 questions

the sba considers a business small if it employs fewer than _______ a)5 b)20 c)100 d)500

d)500

a competitive advantage that small businesses have over larger businesses is: a)lower cost b)more consumer research c)lower prices d)attention to unique customer needs

d)attention to unique customer needs

true or false: most small business owners enjoy being part of a team

false

true or false: everyone who owns or manages a business is an entrprenur

false

true or false: the primary reason that businesses started by entrepreneurs close is disagreements with business partners

false

true or false: a business plan does not have to be written since the business owner is well aware of the information in the plan

false

which of the following is not a characteristic of entrepreneur in the US? a)about 3% of people aged 18-64 are involved in entrepreneurship activity b)about 500,000 new businesses are created each year c)40% of new businesses have no employees d)one in every five americans has invested in a business of someone who they know well

a)about 3% of people aged 18-64 are involved in entrepreneurship activity

every business begins with a(n): a)customer b)profit c)idea d)invention

c)idea

money needed for the important resources of a business (land, buildings, equipment) that will last for many years is called: a)start-up financing b)short-term financing c)long-term finacning d)credit

c)long-term finacning

money provided by large investors to finance new products and new businesses that have a good chance to be very profitable is known as: a)a loan b)credit c)venture capital d)start-up funding

c)venture captital

which of the following is not one of the reasons small businesses 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