1. The Small Business Administration is the government agency charged with
owning small businesses.
A) True
*B) False
2. Small businesses produce more patents per employee than large patenting
firms.
*A) True
B) False
3. Most businesses in the United States are large businesses with more than 500
employees.
A) True
*B) False
4. Major innovations are most likely to come from large corporations.
A) True
*B) False
5. Manufacturing is overwhelmingly handled by big business.
*A) True
B) False
1
,6. People who assume the risk of business ownership with a primary goal of
growth and expansion are called entrepreneurs.
*A) True
B) False
7. Most successful entrepreneurs have a strong desire to be their own bosses.
*A) True
B) False
8. A business plan demonstrates how an entrepreneur's business strategy will be
implemented.
*A) True
B) False
9. Franchisees may be obligated to contribute a percentage of sales to parent
corporations.
*A) True
B) False
10. Loans are the most important sources of money for new businesses.
A) True
*B) False
2
,11. Lending institutions are more likely to help finance the purchase of an existing
business rather than the start-up of a business from scratch.
*A) True
B) False
12. A group of small investors who invest money in companies in return for partial
ownership is known as a small-business development company.
A) True
*B) False
13. Small-business investment companies (SBICs) may be sponsored by the
federal government.
*A) True
B) False
14. The least common type of partnership is the general partnership.
A) True
*B) False
15. A limited liability corporation is a hybrid of a publicly held corporation and a
partnership.
*A) True
B) False
3
, 16. Many new businesses are started by people who have left big corporations.
*A) True
B) False
17. The failure rate among small businesses has been increasing in recent years.
A) True
*B) False
18. Neglect is a major factor that contributes to small business failure.
*A) True
B) False
19. Low start-up costs and tax benefits are advantages of sole proprietorships.
*A) True
B) False
20. By law, each general partner is liable for all debts incurred in the name of the
partnership.
*A) True
B) False
4
owning small businesses.
A) True
*B) False
2. Small businesses produce more patents per employee than large patenting
firms.
*A) True
B) False
3. Most businesses in the United States are large businesses with more than 500
employees.
A) True
*B) False
4. Major innovations are most likely to come from large corporations.
A) True
*B) False
5. Manufacturing is overwhelmingly handled by big business.
*A) True
B) False
1
,6. People who assume the risk of business ownership with a primary goal of
growth and expansion are called entrepreneurs.
*A) True
B) False
7. Most successful entrepreneurs have a strong desire to be their own bosses.
*A) True
B) False
8. A business plan demonstrates how an entrepreneur's business strategy will be
implemented.
*A) True
B) False
9. Franchisees may be obligated to contribute a percentage of sales to parent
corporations.
*A) True
B) False
10. Loans are the most important sources of money for new businesses.
A) True
*B) False
2
,11. Lending institutions are more likely to help finance the purchase of an existing
business rather than the start-up of a business from scratch.
*A) True
B) False
12. A group of small investors who invest money in companies in return for partial
ownership is known as a small-business development company.
A) True
*B) False
13. Small-business investment companies (SBICs) may be sponsored by the
federal government.
*A) True
B) False
14. The least common type of partnership is the general partnership.
A) True
*B) False
15. A limited liability corporation is a hybrid of a publicly held corporation and a
partnership.
*A) True
B) False
3
, 16. Many new businesses are started by people who have left big corporations.
*A) True
B) False
17. The failure rate among small businesses has been increasing in recent years.
A) True
*B) False
18. Neglect is a major factor that contributes to small business failure.
*A) True
B) False
19. Low start-up costs and tax benefits are advantages of sole proprietorships.
*A) True
B) False
20. By law, each general partner is liable for all debts incurred in the name of the
partnership.
*A) True
B) False
4
