Intro - Ch. 6 Review

A(n) ___ is someone who takes a risk in starting a business to earn a profit.

• Crazy person

• Business owner

• Celebrity

• Entrepreneur

___ is the process of starting, organizing, managing, and assuming the responsibility for a business.

• Entrepreneurship

• Manufacturing

• Accounting

___ is money provided by large investors to finance new products and new business that have a good chance of being profitable.

• Venture capital

• Loans

• Capital

• Investments

Which of the following is NOT an advantage of owning your own business?

• Personal control

• Making money

• Losing money

• Satisfaction of creating a successful company

___ is any invention or creation that is brand new.

• Innovation

• Creativity

• Improvement

A ___ is an independent business with fewer than 500 employees.

• Large business

• Small business

• Multi-national

• Corporation

Most small businesses are SERVICE businesses rather than producers of goods.

• True

• False

Which is NOT an advantage of a small business?

• Located closer to consumers

• Offer more unique products / services

• More efficient than most large companies

• Make a lot of money

A ___ is a written description of the business idea and how it will be carried out, including all major business activities.

• Business plan

• Mission statement

• Goal statement

New businesses often go out of business because of

• Higher than expected expenses

• Low sales

• Competitive pressure

• All are reasons