Question 1

A new business should have enough capital to operate at least how many months without earning a profit?

Accepted Answer

A)  1 
B)  2 
C)  4 
D)  6 
E)  9 
A)  1 
B)  2 
C)  4 
D)  6 
E)  9

Question 2

Most businesses in the United States are large businesses with more than 500 employees.

Accepted Answer

A) True 
 B)False

Question 3

Corporations generate sales revenues proportionate to their number as compared to other forms of ownership.

Accepted Answer

A) True 
 B)False

Question 4

The U.S. Department of Commerce considers a business "small" if it has fewer than how many employees?

Accepted Answer

A)  10 
B)  50 
C)  100 
D)  500 
E)  1,500 
A)  10 
B)  50 
C)  100 
D)  500 
E)  1,500

Question 5

Which of the following is an advantage of sole proprietorships?

Accepted Answer

A)  Ease in attracting a silent partner. 
B)  Sales and expenses are treated as part of personal finances. 
C)  It is easier to borrow money. 
D)  There is increased continuity. 
E)  Bills are paid out of pocket. 
A)  Ease in attracting a silent partner. 
B)  Sales and expenses are treated as part of personal finances. 
C)  It is easier to borrow money. 
D)  There is increased continuity. 
E)  Bills are paid out of pocket.

Question 6

When an investor is not interested in owning their own business, why do they need to understand entrepreneurship?

Accepted Answer

A)  To understand why someone would want to work so hard for a small return 
B)  To determine the key characteristics of success 
C)  To understand how to convert a great idea to a profitable idea 
D)  To assess the market potential for up-and-coming businesses 
E)  To learn how to set up a business plan 
A)  To understand why someone would want to work so hard for a small return 
B)  To determine the key characteristics of success 
C)  To understand how to convert a great idea to a profitable idea 
D)  To assess the market potential for up-and-coming businesses 
E)  To learn how to set up a business plan

Question 7

Lending institutions are more likely to help finance the purchase of an existing business rather than the start-up of a business from scratch.

Accepted Answer

A) True 
 B)False

Question 8

Why would an organization divest some of its existing business operations?

Accepted Answer

A)  To focus more on its core business 
B)  To create new partnerships 
C)  Because the divested business is more valuable as a separate company 
D)  To buy another firm outright 
E)  To create a new company from several smaller ones 
A)  To focus more on its core business 
B)  To create new partnerships 
C)  Because the divested business is more valuable as a separate company 
D)  To buy another firm outright 
E)  To create a new company from several smaller ones

Question 9

The failure rate among small businesses has been increasing in recent years.

Accepted Answer

A) True 
 B)False

Question 10

What is the first step in becoming an entrepreneur?

Accepted Answer

A)  Deciding to proceed 
B)  Formulating a business plan 
C)  Identifying distinctive competencies 
D)  Searching for capital to invest 
E)  Implementing plans and opening 
A)  Deciding to proceed 
B)  Formulating a business plan 
C)  Identifying distinctive competencies 
D)  Searching for capital to invest 
E)  Implementing plans and opening

Question 11

Loans are the most important sources of money for new businesses.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following factors MOST contributes to small business failure?

Accepted Answer

A)  Managerial incompetence or inexperience 
B)  Bad product design 
C)  Legal problems 
D)  Time spent raising capital 
E)  Personnel issues 
A)  Managerial incompetence or inexperience 
B)  Bad product design 
C)  Legal problems 
D)  Time spent raising capital 
E)  Personnel issues

Question 13

What is the MOST important advantage of general partnerships?

Accepted Answer

A)  The unlimited liability of the partnership 
B)  The ability to grow with the addition of new talent and money 
C)  The ease of implementing an effective control system 
D)  The increased role of luck 
E)  The need for minority partners 
A)  The unlimited liability of the partnership 
B)  The ability to grow with the addition of new talent and money 
C)  The ease of implementing an effective control system 
D)  The increased role of luck 
E)  The need for minority partners

Question 14

Small businesses impact key aspects of the U.S. economy including

Accepted Answer

A)  bank loans, and contributions to big business. 
B)  international trade and the service industry. 
C)  bank loans and innovation. 
D)  the service industry and job creation. 
E)  job creation and innovation. 
A)  bank loans, and contributions to big business. 
B)  international trade and the service industry. 
C)  bank loans and innovation. 
D)  the service industry and job creation. 
E)  job creation and innovation.

Question 15

What are the advantages and disadvantages for a franchisee?

Accepted Answer

The advantages of franchising include ac

Question 16

Discuss four sources of financing for starting up a small business.

Accepted Answer

Financing for starting up a new business

Question 17

In what type of ownership is an owner liable for debt, but only based on how much they invested?

Accepted Answer

A)  Master limited partnership 
B)  Cooperative 
C)  Limited partnership 
D)  Corporation 
E)  General partnership 
A)  Master limited partnership 
B)  Cooperative 
C)  Limited partnership 
D)  Corporation 
E)  General partnership

Question 18

The least common type of partnership is the general partnership.

Accepted Answer

A) True 
 B)False

Question 19

Explain the role of a corporation's board of directors.

Accepted Answer

The board of directors is responsible fo

Question 20

What is the advantage to starting a business from scratch instead of buying an existing business?

Accepted Answer

A)  There is a proven ability to attract customers. 
B)  Profit is generated sooner. 
C)  There is a stronger relationship with lenders and other stakeholders. 
D)  There are no ill-effects from the previous owner. 
E)  There is a clearer picture of what to expect in terms of start-up. 
A)  There is a proven ability to attract customers. 
B)  Profit is generated sooner. 
C)  There is a stronger relationship with lenders and other stakeholders. 
D)  There are no ill-effects from the previous owner. 
E)  There is a clearer picture of what to expect in terms of start-up.

A new business should have enough capital to operate at least how many months without earning a profit?

Most businesses in the United States are large businesses with more than 500 employees.

Corporations generate sales revenues proportionate to their number as compared to other forms of ownership.

The U.S. Department of Commerce considers a business "small" if it has fewer than how many employees?

Which of the following is an advantage of sole proprietorships?

When an investor is not interested in owning their own business, why do they need to understand entrepreneurship?

Lending institutions are more likely to help finance the purchase of an existing business rather than the start-up of a business from scratch.

Why would an organization divest some of its existing business operations?

The failure rate among small businesses has been increasing in recent years.

What is the first step in becoming an entrepreneur?

Loans are the most important sources of money for new businesses.

Which of the following factors MOST contributes to small business failure?

What is the MOST important advantage of general partnerships?

Small businesses impact key aspects of the U.S. economy including

What are the advantages and disadvantages for a franchisee?

Discuss four sources of financing for starting up a small business.

In what type of ownership is an owner liable for debt, but only based on how much they invested?

The least common type of partnership is the general partnership.

Explain the role of a corporation's board of directors.

What is the advantage to starting a business from scratch instead of buying an existing business?

The U.S. Business Environment

Understanding Business Ethics and Social Responsibility

Understanding the Global Context of Business

Managing the Business

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Developing and Pricing Products

Distributing and Promoting Products

Information Technology (IT)for Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Managing Business Finances

Filters

Exam 3: Entrepreneurship, New Ventures, and Business Ownership

A new business should have enough capital to operate at least how many months without earning a profit?

Most businesses in the United States are large businesses with more than 500 employees.

Corporations generate sales revenues proportionate to their number as compared to other forms of ownership.

The U.S. Department of Commerce considers a business "small" if it has fewer than how many employees?

Which of the following is an advantage of sole proprietorships?

When an investor is not interested in owning their own business, why do they need to understand entrepreneurship?

Lending institutions are more likely to help finance the purchase of an existing business rather than the start-up of a business from scratch.

Why would an organization divest some of its existing business operations?

The failure rate among small businesses has been increasing in recent years.

What is the first step in becoming an entrepreneur?

Loans are the most important sources of money for new businesses.

Which of the following factors MOST contributes to small business failure?

What is the MOST important advantage of general partnerships?

Small businesses impact key aspects of the U.S. economy including

What are the advantages and disadvantages for a franchisee?

Discuss four sources of financing for starting up a small business.

In what type of ownership is an owner liable for debt, but only based on how much they invested?

The least common type of partnership is the general partnership.

Explain the role of a corporation's board of directors.

What is the advantage to starting a business from scratch instead of buying an existing business?

The U.S. Business Environment

Understanding Business Ethics and Social Responsibility

Understanding the Global Context of Business

Managing the Business

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Developing and Pricing Products

Distributing and Promoting Products

Information Technology (IT)for Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Managing Business Finances

Filters