BUSG 129 Chapter 6 quiz

Small businesses create about ______ percent of the new jobs in the United States.

65

True of false: Most entrepreneurs prefer working for someone else.

False

True of false: Successful entrepreneurs are exclusively motivated by the desire to become rich.

False

True or false: Online businesses avoid the risk of failure faced by traditional start-up businesses.

False

True of false: Entrepreneurship involves accepting the risk of starting and running a business.

True

True of false: If you are trying to prevent failure, it is a good idea to go into the business with good record-keeping techniques.

True

True of false: The SBA may guarantee loans made by a financial institution and repay them if the borrowers stop making payments.

True

True or false: Potential entrepreneurs would be well advised to surround themselves with people who are smarter than they are.

True

A review of small business successes and failures indicates that the ______.

businesses with the potential for high profit levels tend to be difficult to start and hard to keep going.

Entrepreneurs seeking financial support from bankers and potential investors should ______.

create a detailed business plan to help the bankers and investors understand why this business will succeed.

One of the hurdles small businesses face when deciding to export is ______.

financing is often difficult to find.

After personal savings, the next largest source of capital for entrepreneurs is from ______.

friends and family.

The Small Business Administration's microloan program awards loans to entrepreneurs based primarily on their ______.

integrity and sound business idea.

A __________ refers to people with unsatisfied wants and needs who are willing and able to buy a product or service.

market

Business incubators are usually government-funded facilities intended to ______.

offer start-up firms low-cost office space and basic business services.

Two key management functions that need particular attention when starting a business are ______.

planning and financing.

The Small Business Administration sponsors volunteers from industry, trade associations, and education who offer advice to small business owners. These volunteers are called:

the Service Corps of Retired Executives (SCORE).

One way to get into business is to buy an existing company. The value of the business used to determine a fair purchase price is based on ______.

the value of what the business owns, what it earns, and what makes it unique.