BMGT Final Exam ACTUAL Exam
Questions and CORRECT Answers
Self confidence - CORRECT ANSWER - a personality characteristic common among
entrepreneurs
What do trends in US small businesses show? - CORRECT ANSWER - a growing number
of small businesses owned by minorities
99% - CORRECT ANSWER - Almost ________ of US Businesses meet the definition of
"small business"
The owner lacks experience and business skills - CORRECT ANSWER - A common
reason new small businesses often fail is...
An executive summary - CORRECT ANSWER - The first element in a good business plan
is...
If you start a small business and want to avoid losing any more than the original investment,
what form of business ownership is best? - CORRECT ANSWER - limited partnership
How can teamwork make teams more successful? - CORRECT ANSWER - Task
performance, member satisfaction, team viability
angel investor - CORRECT ANSWER - wealthy individual willing to invest in return for
equity in a new venture
initial public offering - CORRECT ANSWER - an initial selling of shares of the stock to
the public at large
, venture capitalists - CORRECT ANSWER - make large investments in new ventures in
return for an equity stake in the business
equity financing - CORRECT ANSWER - gives ownership shares to outsiders in return
for their financial investments
debt financing - CORRECT ANSWER - involves borrowing money from another person,
bank, or financial institution
Limited Liability Corporation - CORRECT ANSWER - LLC; combines the advantages of
the sole proprietorship, partnership, and corporation
Corporation - CORRECT ANSWER - legal entity that exists separately from its owners
In a limited partnership... - CORRECT ANSWER - owners share profits but responsibility
for losses is limited to original investments
Partnership - CORRECT ANSWER - when two or more people agree to contribute
resources to start and operate a business together
Sole proprietorship - CORRECT ANSWER - an individual pursuing business for a profit
Business plan - CORRECT ANSWER - describes the direction for a new business and the
financing needed to operate it
Small Business Development Centers - CORRECT ANSWER - offer guidance to
entrepreneurs and small business owners on how to set up and manage business operations
Business incubator - CORRECT ANSWER - facility that offers services to help new
businesses get established
Questions and CORRECT Answers
Self confidence - CORRECT ANSWER - a personality characteristic common among
entrepreneurs
What do trends in US small businesses show? - CORRECT ANSWER - a growing number
of small businesses owned by minorities
99% - CORRECT ANSWER - Almost ________ of US Businesses meet the definition of
"small business"
The owner lacks experience and business skills - CORRECT ANSWER - A common
reason new small businesses often fail is...
An executive summary - CORRECT ANSWER - The first element in a good business plan
is...
If you start a small business and want to avoid losing any more than the original investment,
what form of business ownership is best? - CORRECT ANSWER - limited partnership
How can teamwork make teams more successful? - CORRECT ANSWER - Task
performance, member satisfaction, team viability
angel investor - CORRECT ANSWER - wealthy individual willing to invest in return for
equity in a new venture
initial public offering - CORRECT ANSWER - an initial selling of shares of the stock to
the public at large
, venture capitalists - CORRECT ANSWER - make large investments in new ventures in
return for an equity stake in the business
equity financing - CORRECT ANSWER - gives ownership shares to outsiders in return
for their financial investments
debt financing - CORRECT ANSWER - involves borrowing money from another person,
bank, or financial institution
Limited Liability Corporation - CORRECT ANSWER - LLC; combines the advantages of
the sole proprietorship, partnership, and corporation
Corporation - CORRECT ANSWER - legal entity that exists separately from its owners
In a limited partnership... - CORRECT ANSWER - owners share profits but responsibility
for losses is limited to original investments
Partnership - CORRECT ANSWER - when two or more people agree to contribute
resources to start and operate a business together
Sole proprietorship - CORRECT ANSWER - an individual pursuing business for a profit
Business plan - CORRECT ANSWER - describes the direction for a new business and the
financing needed to operate it
Small Business Development Centers - CORRECT ANSWER - offer guidance to
entrepreneurs and small business owners on how to set up and manage business operations
Business incubator - CORRECT ANSWER - facility that offers services to help new
businesses get established
