Small Business and Internet Start-Ups
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1. Partnerships:
a. often dissolve within five years.
b. involve unlimited liability by both partners.
c. often result in disagreements among strong-minded partners.
d. all of the above.
e. none of the above.

2. If Dina borrows money in order to start a business that she will have to repay at a later date, she has financed her business using:
a. debt financing.
b. equity financing.
c. franchising.
d. a business incubator.

3. Bob wants to use equity financing to start his own business. This means that he will likely:
a. borrow money that has to be repaid at a future date.
b. receive funding in exchange for partial ownership of the company.
c. get a Small Business Administration loan.
d. buy an existing business.

4. A group of companies or individuals that invests money in new or expanding business for ownership and potential profits is known as a business incubator.
a. True
b. False

5. An arrangement in which the owner of a product or service allows others to purchase the right to distribute the product or service with help from the owner is called:
a. franchising.
b. a business incubator.
c. debt financing.
d. equity financing.

6. An entity that provides shared office space, management support services, and management advice to entrepreneurs is known as a:
a. franchise.
b. partnership.
c. business incubator.
d. sole proprietorship.

7. Initial financing for a new business is sometimes provided by a wealthy individual, who believes in the idea for a start-up and provides personal funds and advice to help the business get started. This is known as:
a. franchising.
b. debt financing.
c. equity financing.
d. angel financing.

8. According to your text, entrepreneurial businesses go through five distinct stages of growth. Which of the following is the correct sequence of these five stages?
a. takeoff, start-up, survival, success, resource maturity
b. start-up, survival, success, takeoff, resource maturity
c. start-up, survival, takeoff, resource maturity, success
d. takeoff, survival, success, startup, resource maturity

9. The business plan for an Internet business:
a. should be much more detailed than the traditional business plan.
b. should create a compelling story about why the idea is the seed of the next big Internet success.
c. should include the entrepreneur's background and role in the company.
d. both a & c.
e. both b & c.

10. The final step in the start-up process is often the initial public offering (IPO), in which stock in the new company is sold to the public.
a. True
b. False



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