Question 1

Most experts say that anyone opening a new business should be financially strong enough to operate without business income for
A) 1−3 months.
B) 3−6 months.
C) 6−12 months.
D) 1−3 years.
E) 2−5 years.

Accepted Answer

Most experts recommend having a financial cushion for at least 6-12 months when starting a new business. This allows for unexpected expenses and delays in generating revenue to be covered without facing financial ruin. It also gives the business time to establish itself and gain traction in the market before the pressure of generating income becomes too great. While some businesses may be able to thrive with a shorter financial buffer, it is generally considered best practice to have at least 6-12 months of cash reserves available.

Question 2

The SBA program that is designed to help small businesses that cannot afford consultants is called ____________________.

Accepted Answer

The answer of The SBA program that is designed to...

Question 3

____________________ businesses provide ____________________ businesses with many of the services,supplies,and raw materials they need.

Accepted Answer

The answer of ____________________ businesses provide ____________________ businesses with many...

Question 4

An ____________________ is someone who puts her own resources on the line and takes a personal stake in the success or failure of the company.

Accepted Answer

The answer of An ____________________ is someone who puts her...

Question 5

Four general factors contribute to the failure rate of small businesses.They include
A) managerial inexperience.
B) overcapitalization.
C) rapid growth.
D) the lack of an innovative spirit.
E) managerial competence.

Accepted Answer

The answer of Four general factors contribute to the failure...

Question 6

The history of ____________________ and of the development of new businesses is in many ways the history of great wealth and of great failure.

Accepted Answer

The answer of The history of ____________________ and of the...

Question 7

The three strategic challenges facing small firms are choosing an industry in which to compete,emphasizing distinctive competencies,and ____________________.

Accepted Answer

The answer of The three strategic challenges facing small firms...

Question 8

Four general factors contribute to the failure rate of small businesses.Which of the following is NOT one of those factors?
A) Insufficient capital
B) Managerial incompetence or inexperience
C) Low start-up costs
D) Weak control systems
E) Owner neglect

Accepted Answer

Low start-up costs are not a contributing factor to the failure rate of small businesses. In fact, many successful businesses have started with low start-up costs. The other factors listed, such as insufficient capital, managerial incompetence or inexperience, weak control systems, and owner neglect, are all potential causes of small business failure.

Question 9

A(n)____________________ business sells directly to consumers products manufactured by other firms.

Accepted Answer

The answer of A(n)____________________ business sells directly to consumers products...

Question 10

Part of starting a business is assessing the industry and also a self-assessment by the business owner of her own ____________________ .

Accepted Answer

The answer of Part of starting a business is assessing...

Question 11

A(n)____________________ is an enterprise with sales and assets that are not large enough to influence its environment.

Accepted Answer

The answer of A(n)____________________ is an enterprise with sales and...

Question 12

Minorities and women are starting ____________________ small businesses than in the past.

Accepted Answer

The answer of Minorities and women are starting ____________________ small...

Question 13

Rachel wants to sell products designed for churches that meet in movie theaters.She has found a(n)____________________ market.

Accepted Answer

The answer of Rachel wants to sell products designed for...

Question 14

Four general factors contribute to the success rate of small businesses.Which of the following is NOT one of those factors?
A) Managerial competence
B) Luck
C) Hard work,drive,and dedication
D) Empathy with customers
E) Careful analysis of market conditions

Accepted Answer

Empathy with customers, while important, is not typically listed as one of the general factors contributing to the success rate of small businesses. The other options are more directly related to business success.

Question 15

____________________ businesses supply over half of all "innovations" introduced into the U.S.marketplace each year.

Accepted Answer

The answer of ____________________ businesses supply over half of all...

Question 16

____________________ is when entrepreneurs post details of their ideas for a start-up or new venture,along with other key information.Would-be investors then peruse the ideas that are posted and decide if they want to help fund the start-up or new venture.

Accepted Answer

The answer of ____________________ is when entrepreneurs post details of...

Question 17

The distinctive competencies of small business usually fall into three areas: the ability to identify new niches in established markets,the ability to identify new markets,and the ability to move ____________________.

Accepted Answer

The answer of The distinctive competencies of small business usually...

Question 18

The most common causes of small business success are hard work,____________________,managerial competence,and luck.

Accepted Answer

The answer of The most common causes of small business...

Question 19

Primarily because they require few resources,____________________ businesses are the fastest-growing segment of small-business enterprise.

Accepted Answer

The answer of Primarily because they require few resources,____________________ businesses...

Question 20

____________________ systems are needed to keep a business on track and to help alert entrepreneurs to potential trouble.

Accepted Answer

The answer of ____________________ systems are needed to keep a...

Quiz 9: Managing Start-Ups and New Ventures

Most experts say that anyone opening a new business should be financially strong enough to operate without business income for