Chapter 6 : Study Guide Questions – Flashcards
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An independent business with 200 employees is considered a small business
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True
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Most new business owners obtain start up money to finance their business from banks
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False
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Small businesses employ only 10 percent of U.S. workers
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False
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Successful entrepreneurs have many personal characteristics in common
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True
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An entrepreneur is someone who takes a risk by starting his own business
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True
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Start up financing is money needed to pay current operating costs of business
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False
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One of the main reasons that businesses started by entrepreneurs fail is inadequate capital
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True
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A business plan includes a description of the strengths & weaknesses of competitors
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True
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The process of starting organizing & managing a business
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D
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A brand new invention
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E
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A written description of the business ides
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F
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Money provided by large investors to finance new businesses
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B
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A change that increases the usefulness of a product
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A
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Money to pay for current operating costs of the business
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Short Term
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Purchase of the equipment to open a business
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Start Up
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Money used to open the business
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Start Up
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Financing that is obtained for less than a year
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Short Term
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The license to operate a business
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Start Up
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Large amounts of money paid over many years
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Long Term
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The land that the business is built on
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Long Term
