Question Details

MGT 101 Chapter 6--Managing Small Business Start-Ups PART 2

21.	Social entrepreneurship combines the creativity, business smarts, passion, and hard work of the traditional entrepreneur with a mission to change the world for the better. 
 
True    False
 
22.	The first step in pursuing an entrepreneurial dream is to come up with a viable idea. 
 
True    False
 
23.	The most common source of new business ideas comes from in-depth understanding of an industry or profession. 
 
True    False
 
24.	A document specifying the business details prepared by an entrepreneur prior to opening a new business is known as a business plan. 
 
True    False
 
25.	A business plan for a small business should be detailed, encompassing at least 100 pages. 
 
True    False
 
26.	Since a corporation is a legal structure reserved for large firms, small businesses have two basic choices for legal structure of their company: proprietorship and partnership. 
 
True    False
 
27.	A sole proprietorship an unincorporated business owned by two or more people. 
 
True    False
 
28.	The drawbacks of proprietorship include unlimited liability and difficulty in obtaining financing. 
 
True    False
 
29.	Two principle advantages of forming a corporation are continuity and limits on the owners' liability. 
 
True    False
 
30.	Setting standards too high is a common pitfall for keeping a small business running successfully. 
 
True    False
 
31.	The failure rate for high-tech business is lower than the failure rate for conventional businesses. 
 
True    False
 
32.	Borrowing from family and friends is a common source of debt financing for a start-up business. 
 
True    False
 
33.	The Small Business Administration (SBA) can provide loan financing for small business start-up. 
 
True    False
 
34.	Equity financing is when funds are invested in exchange for ownership in the company. 
 
True    False
 
35.	A venture capital firm is a group of companies or individuals that invests money in new or expanding businesses for ownership and potential profits. 
 
True    False
 
36.	The advantage of buying an existing business is the ability to develop and design the business in the entrepreneur's own way. 
 
True    False
 
37.	An attractive innovation for entrepreneurs who want to start a business from scratch is to join a business incubator. 
 
True    False
 
38.	To succeed in the competitive online market, aspiring entrepreneurs need to identify a market niche that isn't being served by other companies. 
 
True    False
 
39.	Entrepreneurs see themselves as being less in control of their environment, generally speaking, and can be expected to have an external locus of control. 
 
True    False
 
40.	The first stage of growth for an entrepreneurial company is the investment stage. 
 
True    False