Small Business Management AAMI questions with correct answers

Many new businesses are formed as a result of the entrepreneur's previous work experience, through which he or she sees ways to improve or modify a product CORRECT ANSWER True Startups are more likely to be successful when the entrepreneur first evaluates his or her own capabilities and then looks for a new product or service idea, as opposed to beginning with a need in the marketplace and then relating those to personal capabilities CORRECT ANSWER True An entrepreneur who starts hid or her own business, rather than buying an existing business, avoids the undesirable precedents, policies, procedures, and legal commitments of the existing firm CORRECT ANSWER True Earnings valuations approach is a business valuation approach that centers on estimating the amount of potential income that may be produced by the business in the next year. CORRECT ANSWER True Market value approach is a valuation used in business which determines value based upon sales of stocks in the stock market. CORRECT ANSWER False Research has shown that most entrepreneurs generate their business ideas by searching external sources of ideas. CORRECT ANSWER False