SBA SBA Entrepreneurship & Small Business Fundamentals

Question 1

According to the SBA, what percentage of U.S. businesses are classified as small businesses?

Accepted Answer

99.9%

Answer

75%

Answer

89%

Answer

60%

Question 2

What is the definition of a 'startup' in the context of small business development?

Accepted Answer

A newly established business in its early stages of operations

Answer

A business more than 5 years old

Answer

A franchise business

Answer

A business with over 50 employees

Question 3

Which of the following is a primary characteristic that differentiates entrepreneurs from managers?

Accepted Answer

Entrepreneurs identify and pursue new business opportunities, often taking personal financial risk

Answer

Entrepreneurs avoid financial risk

Answer

Entrepreneurs only work in large corporations

Answer

Entrepreneurs never delegate tasks

Question 4

What is 'bootstrapping' in the context of starting a small business?

Accepted Answer

Funding and growing a business using personal resources and revenue without external financing

Answer

Applying for multiple SBA loans simultaneously

Answer

Forming a business partnership

Answer

Filing for business bankruptcy protection

Question 5

What is the main purpose of a feasibility study before launching a small business?

Accepted Answer

Assess whether a business idea is viable and likely to succeed

Answer

Secure a trademark

Answer

Register the business with the state

Answer

Hire initial employees

Question 6

What role does the SBA play in the U.S. economy according to its core mission?

Accepted Answer

Aid, counsel, assist, and protect the interests of small businesses

Answer

Regulate all business activities

Answer

Collect federal business taxes

Answer

Manage government contracting for large corporations