Entrepreneurship and Small Business Management Quiz

The process of starting, organizing, managing, and assuming the responsibility for a business is called capitalism.

• True

• False

Everyone who owns a business is an entrepreneur.

• True

• False

In the United States, nearly as many small businesses close as begin each year.

• True

• False

According to the IRS, sole proprietorships account for more than $1.5 trillion in annual sales.

• True

• False

All entrepreneurship opportunities emerge from inventions and innovations.

• True

• False

Most new businesses are successful and show a profit ten years after they were started.

• True

• False

Many small businesses fail simply due to their location.

• True

• False

The most important step in starting a business is preparation.

• True

• False

Once a business plan is written, it should never be revised nor updated.

• True

• False

If the business owner needs help from others, especially for financing the new business, a business plan usually will be required.

• True

• False