Question 1

_____ is reducing the number of employees to increase efficiency.

Accepted Answer

A)  Freezing 
B)  Rightsizing 
C)  Procuring 
D)  Resourcing 
A)  Freezing 
B)  Rightsizing 
C)  Procuring 
D)  Resourcing

Question 2

A small business provides employees with a variety of learning experiences not open to individuals holding more specialized jobs in larger companies.

Accepted Answer

A) True 
 B)False

Question 3

According to the SBA's Office of Advocacy (www.sba.gov), only _____ tend to be dominated by larger businesses.

Accepted Answer

A)  specialized delivery and catering services 
B)  health care and knowledge services 
C)  construction and personnel/supply services 
D)  management, business, and financial services 
A)  specialized delivery and catering services 
B)  health care and knowledge services 
C)  construction and personnel/supply services 
D)  management, business, and financial services

Question 4

The new business owner's primary motive is usually _____.

Accepted Answer

A)  independence 
B)  the need to obtain a second income 
C)  the need to provide a niche product 
D)  profits 
A)  independence 
B)  the need to obtain a second income 
C)  the need to provide a niche product 
D)  profits

Question 5

Which of the following is true about the first stage of the growth pattern that small businesses tend to follow?

Accepted Answer

A)  Owners manage the business and do all the work 
B)  Owners still manage their companies but hire employees to help with routine and/or management activities 
C)  Owners hire managers to run the firms 
D)  Owners outsource much of the supervisory work 
A)  Owners manage the business and do all the work 
B)  Owners still manage their companies but hire employees to help with routine and/or management activities 
C)  Owners hire managers to run the firms 
D)  Owners outsource much of the supervisory work

Question 6

_____ is a voluntary decision to terminate a business.

Accepted Answer

A)  Foreclosure 
B)  Formal failure 
C)  Discontinuance 
D)  Bankruptcy 
A)  Foreclosure 
B)  Formal failure 
C)  Discontinuance 
D)  Bankruptcy

Question 7

Which of the following is true about failure and small businesses?

Accepted Answer

A)  Personal failures typically end up in court with some kind of loss to the creditors. 
B)  A discontinuance may result from the apparent advantages of working for some else. 
C)  Formal failures are far more numerous than personal ones. 
D)  Discontinuance usually results when creditors file a lawsuit against a small business. 
A)  Personal failures typically end up in court with some kind of loss to the creditors. 
B)  A discontinuance may result from the apparent advantages of working for some else. 
C)  Formal failures are far more numerous than personal ones. 
D)  Discontinuance usually results when creditors file a lawsuit against a small business.

Question 8

Few jobs in small firms are unaffected by improvements in communications and computer technology.

Accepted Answer

A) True 
 B)False

Question 9

Managers of small firms must be specialists rather than generalists.

Accepted Answer

A) True 
 B)False

Question 10

Technological advances in automation, computers, robotics, and electronic communication, along with changing markets resulting from cultural, demographic, and economic changes, have affected traditional "smokestack" industries.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is a major reason for the increased interest in small business?

Accepted Answer

A)  There is no major fear of being impacted by recession. 
B)  There is a growing trend toward self-employment. 
C)  There is an abundance of financing opportunities for small businesses. 
D)  There are very few government regulations and paperwork for small businesses. 
A)  There is no major fear of being impacted by recession. 
B)  There is a growing trend toward self-employment. 
C)  There is an abundance of financing opportunities for small businesses. 
D)  There are very few government regulations and paperwork for small businesses.

Question 12

Small firms generate most new private employment.

Accepted Answer

A) True 
 B)False

Question 13

Mention some major contributions made by small businesses.

Accepted Answer

Some major contributions made by small b

Question 14

Which of the following is the result of the trend in business to become more active globally?

Accepted Answer

A)  A growing number of large and small U.S. businesses are or are becoming foreign owned. 
B)  The American consumer is increasingly noticing the change in managerial styles. 
C)  The foreign-owned companies tend to have very traditional managerial styles. 
D)  Small business owners and managers can continue to follow their conventional management styles. 
A)  A growing number of large and small U.S. businesses are or are becoming foreign owned. 
B)  The American consumer is increasingly noticing the change in managerial styles. 
C)  The foreign-owned companies tend to have very traditional managerial styles. 
D)  Small business owners and managers can continue to follow their conventional management styles.

Question 15

Today more students think self-employment is a safer haven than working for big corporations.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following features must a business have to be classified as "small"?

Accepted Answer

A)  Management is independent, and the area of operation is primarily local 
B)  Dominant in its field of operation, and it employs 100-200 people 
C)  Ownership is held by one or few individuals, and the market is primarily local 
D)  Capital is provided by a federal institution, and the objectives are profitability and growth 
A)  Management is independent, and the area of operation is primarily local 
B)  Dominant in its field of operation, and it employs 100-200 people 
C)  Ownership is held by one or few individuals, and the market is primarily local 
D)  Capital is provided by a federal institution, and the objectives are profitability and growth

Question 17

Which of the following is true about small businesses?

Accepted Answer

A)  The manager usually owns the business. 
B)  The area of operations is not necessarily local, although the market is primarily local. 
C)  Capital is supplied and ownership is held by a large number of individuals. 
D)  In the European Union (EU), more than 70 percent of the workforce is employed in firms with 10 or fewer employees. 
A)  The manager usually owns the business. 
B)  The area of operations is not necessarily local, although the market is primarily local. 
C)  Capital is supplied and ownership is held by a large number of individuals. 
D)  In the European Union (EU), more than 70 percent of the workforce is employed in firms with 10 or fewer employees.

Question 18

Downsizing or rightsizing is reducing the number of employees in order to achieve efficiency.

Accepted Answer

A) True 
 B)False

Question 19

Mention some of the reasons for the increased interest in small business.

Accepted Answer

The following are some reasons for the i

Question 20

The length of service of professional managers (as opposed to owner-managers) in small businesses tends to be relatively long.

Accepted Answer

A) True 
 B)False

_____ is reducing the number of employees to increase efficiency.

A small business provides employees with a variety of learning experiences not open to individuals holding more specialized jobs in larger companies.

According to the SBA's Office of Advocacy (www.sba.gov), only _____ tend to be dominated by larger businesses.

The new business owner's primary motive is usually _____.

Which of the following is true about the first stage of the growth pattern that small businesses tend to follow?

_____ is a voluntary decision to terminate a business.

Which of the following is true about failure and small businesses?

Few jobs in small firms are unaffected by improvements in communications and computer technology.

Managers of small firms must be specialists rather than generalists.

Technological advances in automation, computers, robotics, and electronic communication, along with changing markets resulting from cultural, demographic, and economic changes, have affected traditional "smokestack" industries.

Which of the following is a major reason for the increased interest in small business?

Small firms generate most new private employment.

Mention some major contributions made by small businesses.

Which of the following is the result of the trend in business to become more active globally?

Today more students think self-employment is a safer haven than working for big corporations.

Which of the following features must a business have to be classified as "small"?

Which of the following is true about small businesses?

Downsizing or rightsizing is reducing the number of employees in order to achieve efficiency.

Mention some of the reasons for the increased interest in small business.

The length of service of professional managers (as opposed to owner-managers) in small businesses tends to be relatively long.

Family-Owned Businesses

Forms of Ownership of Small Businesses

Maintaining Good Government Relations and Business Ethics

Becoming the Owner of a Small Business

Planning, Organizing, and Managing a Small Business

How to Obtain the Right Financing for Your Business

Developing Marketing Strategies

Promoting and Distributing

How to Obtain and Manage Human Resources and Diversity in Small Companies

How to Maintain Relationships With Your Employees and Their Representatives

Obtaining and Laying Out Operating Facilities

Purchasing, Inventory, and Quality Control

Basic Financial Planning

Budgeting and Controlling Operations and Taxes

Using Computer Technology in Small Businesses

Risk Management, Insurance, and Crime Prevention

Filters

Exam 1: Starting Your Small Business

_____ is reducing the number of employees to increase efficiency.

A small business provides employees with a variety of learning experiences not open to individuals holding more specialized jobs in larger companies.

According to the SBA's Office of Advocacy (www.sba.gov), only _____ tend to be dominated by larger businesses.

The new business owner's primary motive is usually _____.

Which of the following is true about the first stage of the growth pattern that small businesses tend to follow?

_____ is a voluntary decision to terminate a business.

Which of the following is true about failure and small businesses?

Few jobs in small firms are unaffected by improvements in communications and computer technology.

Managers of small firms must be specialists rather than generalists.

Technological advances in automation, computers, robotics, and electronic communication, along with changing markets resulting from cultural, demographic, and economic changes, have affected traditional "smokestack" industries.

Which of the following is a major reason for the increased interest in small business?

Small firms generate most new private employment.

Mention some major contributions made by small businesses.

Which of the following is the result of the trend in business to become more active globally?

Today more students think self-employment is a safer haven than working for big corporations.

Which of the following features must a business have to be classified as "small"?

Which of the following is true about small businesses?

Downsizing or rightsizing is reducing the number of employees in order to achieve efficiency.

Mention some of the reasons for the increased interest in small business.

The length of service of professional managers (as opposed to owner-managers) in small businesses tends to be relatively long.

Family-Owned Businesses

Forms of Ownership of Small Businesses

Maintaining Good Government Relations and Business Ethics

Becoming the Owner of a Small Business

Planning, Organizing, and Managing a Small Business

How to Obtain the Right Financing for Your Business

Developing Marketing Strategies

Promoting and Distributing

How to Obtain and Manage Human Resources and Diversity in Small Companies

How to Maintain Relationships With Your Employees and Their Representatives

Obtaining and Laying Out Operating Facilities

Purchasing, Inventory, and Quality Control

Basic Financial Planning

Budgeting and Controlling Operations and Taxes

Using Computer Technology in Small Businesses

Risk Management, Insurance, and Crime Prevention

Filters