Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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1.
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Which
of the following is probably the LEAST important factor in becoming an entrepreneur? a. | living in a
major U.S. city | b. | having special skills and abilities | c. | having a real
desire to be your own boss | d. | developing a good initial business
plan | | |
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2.
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In
the United States, about how many women own their own businesses? a. | 0.5
million | b. | 6 million | c. | 14
million | d. | 22 million | | |
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3.
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Most
of the money needed to start a new business comes from a. | the sale of
stock. | b. | credit given by businesses that sell products and services to
the new business. | c. | bank loans. | d. | the entrepreneur
and his/her family and friends. | | |
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4.
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Small
businesses account for ____ of the U.S. gross domestic product each year. a. | about 10
percent | b. | almost a quarter | c. | nearly
half | d. | about 75
percent | | |
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5.
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Which
of the following does NOT describe a typical small business? a. | The owner is
usually the manager. | b. | It is dominant in its field. | c. | It serves a
small market. | d. | It operates in one or very few
locations. | | |
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6.
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Small
businesses have an advantage over big businesses when customers a. | are willing to
buy standard products. | b. | want more individual attention. | c. | prefer low cost
and efficient delivery. | d. | all of the above | | |
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7.
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Location is important to small retail businesses because a. | most retailers
need good customer traffic to survive. | b. | many potential customers will stay away if the business is not
easy to find. | c. | customers generally do not want to travel long distances to
find what they need. | d. | all of the above | | |
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8.
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If
you start a new business, you need information about a. | competitors. | b. | government regulations. | c. | customers. | d. | all of the above | | |
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9.
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The
first step in developing a business plan is to a. | identify alternative plans for production and
marketing. | b. | write the introductory section. | c. | develop the
“game plan.” | d. | gather and review information. | | |
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10.
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Short-term financing is obtained for a period of less than a. | three
months. | b. | six months. | c. | one
year. | d. | two years. | | |
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Completion
Complete each sentence or
statement.
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11.
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A(n)
____________________ is someone who takes a risk in starting a business to earn a
profit.
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12.
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____________________ capital is money provided by large investors to finance new
products and new business that have a good chance to succeed.
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13.
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A(n)
____________________ is an invention or creation that is brand new.
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14.
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A
designed change that increases the usefulness of a product, service, or process is called a(n)
____________________.
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15.
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The
majority of small business owners are over ____________________ years old.
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16.
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The
Small Business ____________________ is a U.S. government agency that helps small business owners
obtain financing and other support for their companies.
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17.
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Members of the Service Corps of Retired ____________________ are retired local
businesspeople who volunteer their services to counsel and mentor new business owners.
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18.
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A
business ____________________ is a written description of a business idea and how it will be carried
out.
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19.
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Most
business plans are developed for ____________________ year(s).
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20.
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The
amount of money needed to open a business is called ____________________ financing.
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21.
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Products or raw materials a business keeps on hand to do business are referred to as
____________________.
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22.
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Money
needed to pay for the current operating activities of a business is referred to as
____________________ financing.
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23.
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The
source of owner-supplied money depends on the business’s ownership structure. In a(n)
____________________, one person will supply the money.
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24.
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____________________ financing is money needed for the main resources of a business
that will last for many years.
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