Question 1

The most important step in the process of starting a business is creating a business plan-a document that identifies a company's goals and explains how they'll be achieved.

Accepted Answer

A) True 
 B)False

Question 2

To be successful in business, you should:

Accepted Answer

A)   avoid changes.
B)   handle all aspects of your business yourself.
C)   keep an eye on competitors.
D)   become a specialist in one particular area of business.

Question 3

Small businesses in the U.S. generate about 50% of our gross domestic product (GDP).

Accepted Answer

A) True 
 B)False

Question 4

Owners of small businesses are responsible for much of the _____ of U.S. business.

Accepted Answer

A)   short-term debt
B)   healthcare shortfall
C)   wage escalation
D)   product innovation

Question 5

_____ tend to offer environments that appeal to individuals with the talent to invent new products or improve the way things are being done.

Accepted Answer

A)   Small businesses
B)   Free markets
C)   Family-owned businesses
D)   Sole proprietorships

Question 6

Sometimes the only section of a business plan that readers will consider is the _____.

Accepted Answer

A)   "Mission Statement"
B)   "Production Overview"
C)   "Business Summary"
D)   "Executive Summary"

Question 7

The "Executive Summary" section of a business plan answers the question "What is the outlook for the industry"

Accepted Answer

A) True 
 B)False

Question 8

The _____ section of the business plan describes the purpose of the proposed business-its reason for existence.

Accepted Answer

A)   "Executive Summary"
B)   "Core Values"
C)   "Mission Statement"
D)   "Justification Analysis"

Question 9

The _____ section of the business plan is designed to convince the reader that the company will be operated by well-qualified and experienced people.

Accepted Answer

A)   "Mission Statement"
B)   "Management Plan"
C)   "Personnel Overview"
D)   "Executive Summary"

Question 10

They key to coming up with a great business idea is to:

Accepted Answer

A)   develop an innovative product or service.
B)   provide a product or service that no one else offers.
C)   fill an unmet need.
D)   offer a product that is similar to others. C

Question 11

Which of the following is an advantage to starting a business

Accepted Answer

A)   Financial security
B)   Avoidance of unpleasant work tasks
C)   Opportunity to gain an understanding of all aspects of a business
D)   Lower stress level

Question 12

The service-producing sector includes manufacturing, construction, and agriculture.

Accepted Answer

A) True 
 B)False

Question 13

Explain why some individuals become entrepreneurs.

Accepted Answer

The main reasons include the desire to b...

Question 14

Which of the following is not a reason that many business fail

Accepted Answer

A)   They run into cash flow problems
B)   They grow too rapidly
C)   The owners lack managerial experience
D)   They focus on the customer rather than their product or service

Question 15

A rewarding aspect of being a business owner is that you can't get fired-an advantage that comes under the heading of "Creative Freedom and Personal Satisfaction."

Accepted Answer

A) True 
 B)False

Question 16

A company is considered large if it _____.

Accepted Answer

A)   employs more than 500 employees
B)   is independently owned and operated and exerts little influence in its industry
C)   demonstrates sustained growth
D)   has been in existence for more than ten years

Question 17

Over the last two decades, women have become the majority of small business owners.

Accepted Answer

A) True 
 B)False

Question 18

In addition to your initial investment, you will have to pay a(n)  _____ for continued support from a franchiser and the right to keep using the company's trade name.

Accepted Answer

A)   advertising fee
B)   management charge
C)   business assessment
D)   royalty fee D

Question 19

According to the Small Business Administration, one of the most common reasons for starting a business is to _____.

Accepted Answer

A)   be your own boss
B)   develop managerial skills
C)   achieve financial security
D)   manage team-oriented projects

Question 20

Which of the following is not a characteristic of an entrepreneur

Accepted Answer

A)   Is confident in their innovation or business idea
B)   Is willing to work under a certain degree of uncertainty
C)   Avoids risk
D)   Has the flexibility to adjust to changing situations C

Exam 5: The Challenges of Starting a Business

The most important step in the process of starting a business is creating a business plan-a document that identifies a company's goals and explains how they'll be achieved.

Correct AnswerverifiedShow Answer

To be successful in business, you should:

Correct AnswerverifiedShow Answer

Small businesses in the U.S. generate about 50% of our gross domestic product (GDP).

Correct AnswerverifiedShow Answer

Owners of small businesses are responsible for much of the _____ of U.S. business.

Correct AnswerverifiedShow Answer

_____ tend to offer environments that appeal to individuals with the talent to invent new products or improve the way things are being done.

Correct AnswerverifiedShow Answer

Sometimes the only section of a business plan that readers will consider is the _____.

Correct AnswerverifiedShow Answer

The "Executive Summary" section of a business plan answers the question "What is the outlook for the industry"

Correct AnswerverifiedShow Answer

The _____ section of the business plan describes the purpose of the proposed business-its reason for existence.

Correct AnswerverifiedShow Answer

The _____ section of the business plan is designed to convince the reader that the company will be operated by well-qualified and experienced people.

Correct AnswerverifiedShow Answer

They key to coming up with a great business idea is to:

Correct AnswerverifiedC

Which of the following is an advantage to starting a business

Correct AnswerverifiedShow Answer

The service-producing sector includes manufacturing, construction, and agriculture.

Correct AnswerverifiedShow Answer

Explain why some individuals become entrepreneurs.

Correct AnswerverifiedThe main reasons include the desire to b...View AnswerShow Answer

Which of the following is not a reason that many business fail

Correct AnswerverifiedShow Answer

A rewarding aspect of being a business owner is that you can't get fired-an advantage that comes under the heading of "Creative Freedom and Personal Satisfaction."

Correct AnswerverifiedShow Answer

A company is considered large if it _____.

Correct AnswerverifiedShow Answer

Over the last two decades, women have become the majority of small business owners.

Correct AnswerverifiedShow Answer

In addition to your initial investment, you will have to pay a(n) _____ for continued support from a franchiser and the right to keep using the company's trade name.

Correct AnswerverifiedD

According to the Small Business Administration, one of the most common reasons for starting a business is to _____.

Correct AnswerverifiedShow Answer

Which of the following is not a characteristic of an entrepreneur

Correct AnswerverifiedC

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C

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The main reasons include the desire to b...
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D

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C