IBT Entrepreneurship Test

1.

4 points

A small business is defined as an independent business with fewer than ______ employees.

500

300

100

200

2.

4 points

The business idea, ownership structure, and the business's long-term goals are discussed in this section of the business plan.

description of the business

operations plan

financial plan

marketing plan

3.

4 points

Everyone who owns or manages a business is an entrepreneur.

True

False

4.

4 points

A business plan does not have to be written because the business owner is well aware of the information in the plan.

True

False

5.

4 points

The government agency that helps entrepreneurs develop business plans and obtain financing is known as the

Department of Trade and Industry.

Service Corps of Retired Executives (SCORE).

Entrepreneurs Anonymous.

Small Business Administration (SBA).

6.

4 points

A designed change that increases the usefulness of a product or service is a (n)

improvement.

entrepreneurship.

business plan.

innovation.

7.

4 points

Small business assistance is available from

university or college professors.

professional business organizations.

government agencies.

all of the above

8.

4 points

A good example of an entrepreneur is a(n)

checkout clerk at Target.

gift shop owner.

UPS delivery driver.

police officer.

9.

4 points

Large businesses in the United States produce the majority of goods and services for the economy.

True

False

10.

4 points

New businesses are often discontinued because of

low sales

competitive pressure.

higher than expected expenses.

all of the above

11.

4 points

A business that involves more than one person but that has met the legal requirements to operate as a single person and recognized as such in law is a _____________________.

sole proprietorship

corporation

entrepreneurship

partnership

12.

4 points

The American private enterprise system discourages risk-taking and innovation.

True

False

13.

4 points

In a sole proprietorship, how many individuals own all of the assets of a business?

one

two

two or more

numerous stockholders

14.

4 points

Successful entrepreneurs have very few personal characteristics in common.

True

False

15.

4 points

Most new, American jobs are created by small business.

True

False

16.

4 points

Which of the of the following forms of business ownership separates the owner from the business for tax and liability purposes?

sole proprietorship

corporation

partnership

partnership and corporation

17.

4 points

What are the sources of financing that entrepreneurs use for their new businesses?

personal savings, loans and friends/family

loans, friends/family, and venture capital

personal savings, loans, and venture capital

all of these listed

18.

4 points

Personal characteristics of successful entrepreneurs include

greed.

persistence.

receklessness.

pessimism.

19.

4 points

Retail trade accounts for the largest percentage of small businesses in the United States.

True

False

20.

4 points

A business plan includes a description of the strengths and weakness of competitors.

True

False

21.

4 points

Many small businesses fail simply because the owners do not keep adequate records.

True

False

22.

4 points

Money used to open the business is called __________.

start-up capital.

venture capital.

long-term financial needs.

short-term financial needs.

23.

4 points

Shoney's in Fayetteville, and every subsequent business in the same facility, more than likely closed due to which of the following?

lack of management experience

not having enough start-up money

not controlling operating expenses

poor location for the business

24.

4 points

Most successful entrepreneurs have a low tolerance for ambiguity.

True

False

25.

4 points

Money provided by large investors to finance new products and new businesses that have a good chance to be very profitable is known as

a loan.

start-up funding.

credit.

venture capital.