Chapter 6 Practice Quiz – Flashcards

Andy, an entrepreneur, plans to open a bakery in his neighborhood. He realizes that there are no branded bakeries in the locality, even though there are a number of independent bakeries. He approaches Soft Bakes, an international bakery chain, and signs an agreement with them that gives him the right to open a bakery shop that uses Soft Bakes' name and management methods. In this scenario, which of the following business methods does Andy use?

Compared to starting a new business, buying an existing business can involve more work and more risk. True or False

Investors who provide money to finance new businesses or turnarounds in exchange for a portion of ownership, with the objective of reselling the business at a profit are called ________.

Money used or needed to set up a new business is ________.

One of the general characteristics of a small business is that it typically sells fewer products ________.

________ provide a small business with a wide array of support resources and services during its early growth phase.

The failure rate of new businesses is usually high during the first year. True or False

A business plan summarizes the proposed business venture, goals, and plans for achieving those goals. True or False

Small companies tend to differ from large ones because ________.

Three factors contributing to the increased number of small businesses are technologies such as e-commerce, growing diversity in entrepreneurship, and ________.

Well-known examples of ________ include Taco Bell, Pizza Hut, The UPS Store, and Curves fitness centers.