Chapter 5 Review (True or False)
Multipreneurs are business people who have tried a succession of entrepreneurial start-ups without finding an area in which they could be successful. T OR F?
False
The first step in starting your own business is the creation of a unique marketable idea. T OR F?
False
The two sources for debt financing are angel investors and venture capitalists. T OR F?
False
Unlike large corporations, sole proprietorship do not need a business plan.
False
A positive aspect of opening a small business is that it takes very little management skill because it is small. T OR F?
False
Direct Small Business Administration (SBA) loans are made from funds set aside each year by Congress. T OR F?
False
Due to their size large businesses tend to have greater flexibility than small businesses. T OR F?
False
Entrepreneurial activities are not influenced by changes in the external environment. T OR F?
False
Entrepreneurs, as a general group, dislike risk taking. T OR F?
False
Established small businesses are defined as companies that have been in business at least fifteen years and employ between 50 to 500 employees. T OR F?
False
In the past few years, the federal government has cut back burdensome government regulations and paperwork to the point that they are also almost non-existent for small business owners. T OR F?
False
It is not advisable for small businesses to use the services of CPAs and lawyers because most businesses are too small to afford the expense. T OR F?
False
Minorities are not interested in becoming entrepreneurs. T OR F?
False
An entrepreneur is a person who opens and manages his or her own business. T OR F?
True
Ann advantage of a small manufacturer is the speed with which new products can be introduced to the marketplace. T OR F?
True
Entrepreneurs are people with vision, drive, and creativity, who are willing to take the risk of starting and managing a business to make a profit. T OR F?
True
Entrepreneurs typically are innovators who start companies to pursue their ideas for a new product or service. T OR F?
True
Inadequate early planning is often at the core of small business failures. T OR F?
True
Many small businesses that sell their products internationally use the services to export management companies (EMCs). T OR F?
True
Micropreneurs are entrepreneurs who start small and plan to stay small. T OR F?
True
More than half of small businesses have between one and four employees. T OR F?
True
One of the biggest advantages that a small business has over a large business is a greater ability to serve specialized markets. T OR F?
True
One of the reasons small businesses continue to thrive in the United States is outsourcing. T OR F?
True
One of the reasons why there has been a dramatic increase in the number of small business startups is rapidly changing technology. T OR F?
True
The Small Business Administration (SBA) assists small businesses by providing advice in management and financial matters. T OR F?
True
The most common use of a business plan is to persuade lenders and investors to finance the venture. T OR F?
True