True or False Quiz

Please answer all questions.


1	Venture capitalists put up collateral for small business owners' loans.
		A)	True
		B)	False


2	The money used to start a business and keep it running is referred to as capital.
		A)	True
		B)	False


3	More and more firms are emulating large corporations in an effort to improve their own bottom lines.
		A)	True
		B)	False


4	Relatively high start-up costs is a disadvantage of a small business.
		A)	True
		B)	False


5	There is only one accepted definition of a small business.
		A)	True
		B)	False


6	Retailers acquire goods from producers and wholesalers and sell them to consumers.
		A)	True
		B)	False


7	Any business that is independently owned and operated classifies as a corporation.
		A)	True
		B)	False


8	Small business principles can be transferred to larger organizations.
		A)	True
		B)	False


9	Over 99% of all U.S. firms are classified as small businesses
		A)	True
		B)	False


10	Poor motivation causes many small business failures.
		A)	True
		B)	False


11	Because of their size, small businesses do not require a business plan.
		A)	True
		B)	False


12	McDonald's and Federal Express began as small businesses.
		A)	True
		B)	False


13	The desire to be your own boss makes it difficult to go into business for yourself.
		A)	True
		B)	False


14	Entrepreneurs tend to avoid retailing, services, and high technology because these fields tend to require high initial capital investments.
		A)	True
		B)	False


15	Flexibility to adapt to changing market demands is an advantage of the small business.
		A)	True
		B)	False


16	The most important source of funds for any new small business is the owner.
		A)	True
		B)	False


17	Undercapitalization is a lack of sufficient funds to operate a business normally.
		A)	True
		B)	False


18	Small businesses have a high failure rate.
		A)	True
		B)	False


19	Targeting small niches or product needs is a valuable strategy for a small business to follow.
		A)	True
		B)	False


20	IBM, General Electric, and 3M have downsized to improve their competitiveness.
		A)	True
		B)	False


21	A franchisee is a license to sell another's products or to use another's name in business or both.
		A)	True
		B)	False

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