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

According to the SBA, small businesses make up 99.9% of all U.S. businesses, demonstrating their critical importance to the American economy.

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 startup is a newly created business in the early stages of operations, typically focused on developing a scalable product or service.

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 distinguish themselves by identifying market opportunities, taking calculated personal financial risks, and building new ventures to capitalize on those opportunities.

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

Bootstrapping means building and growing a business using personal savings and generated revenue rather than seeking outside investment or loans.

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

A feasibility study evaluates a business concept's market potential, financial requirements, and operational challenges before committing resources to launch.

(SBA) Small Business Administration Certified Business Practice Test

(SBA) Small Business Administration Certified Business Practice Test

SBA SBA Entrepreneurship & Small Business Fundamentals