Question 1

In formal failures, the owner who cannot succeed voluntarily terminates the business.

Accepted Answer

A) True 
 B)False

Question 2

The growth rate of the general workforce is always greater than the growth rate of self-employment.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following best describes one of the contributions of small businesses?

Accepted Answer

A)  They are sources of new ideas or services that larger businesses may be unable to provide. 
B)  They provide large capital gains to the owners. 
C)  Their products and services are sold at prices that are lower than large businesses' prices. 
D)  They provide economies of scale that large businesses cannot match. 
A)  They are sources of new ideas or services that larger businesses may be unable to provide. 
B)  They provide large capital gains to the owners. 
C)  Their products and services are sold at prices that are lower than large businesses' prices. 
D)  They provide economies of scale that large businesses cannot match.

Question 4

Which of the following is a reason for starting a small business?

Accepted Answer

A)  To get a chance to act like automatons 
B)  To get freedom from decision-making responsibility 
C)  To focus on profit maximization and aggressive growth 
D)  To satisfy personal objectives 
A)  To get a chance to act like automatons 
B)  To get freedom from decision-making responsibility 
C)  To focus on profit maximization and aggressive growth 
D)  To satisfy personal objectives

Question 5

Mention the features of a small business to be classified as "small."

Accepted Answer

To be classified as "small," a small bus

Question 6

What are business incubators? How do they help young firms succeed?

Accepted Answer

Business incubators nurture young firms

Question 7

A _____ is one that is independently owned and operated and is not dominant in its field of operation.

Accepted Answer

A)  monopolistic organization 
B)  public enterprise 
C)  close corporation 
D)  small business 
A)  monopolistic organization 
B)  public enterprise 
C)  close corporation 
D)  small business

Question 8

Which of the following is true about small businesses?

Accepted Answer

A)  They get easy financing resulting in too many choices for funding. 
B)  Small businesses provide low employee job satisfaction owing to a lower volume of transactions. 
C)  They are not subject to burdensome government regulations and paperwork. 
D)  Inadequate management in small businesses creates problems for small business owners and entrepreneurs. 
A)  They get easy financing resulting in too many choices for funding. 
B)  Small businesses provide low employee job satisfaction owing to a lower volume of transactions. 
C)  They are not subject to burdensome government regulations and paperwork. 
D)  Inadequate management in small businesses creates problems for small business owners and entrepreneurs.

Question 9

Which of the following is the main goal of an incubation program?

Accepted Answer

A)  Provide financial assistance 
B)  Exempt small businesses from interest on loans 
C)  Procure equipment 
D)  Produce businesses that are financially viable and freestanding 
A)  Provide financial assistance 
B)  Exempt small businesses from interest on loans 
C)  Procure equipment 
D)  Produce businesses that are financially viable and freestanding

Question 10

Nowadays, smaller firms are exempt from many federal regulations and even some state and local ones.

Accepted Answer

A) True 
 B)False

Question 11

Mention the characteristics of successful owners of small businesses.

Accepted Answer

The characteristics of successful owners

Question 12

One of the unique contributions of small businesses is that they keep larger firms competitive.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following industries is expected to produce the most new jobs by the year 2018?

Accepted Answer

A)  Professional and related 
B)  Service 
C)  Office and administrative support 
D)  Sales and related 
A)  Professional and related 
B)  Service 
C)  Office and administrative support 
D)  Sales and related

Question 14

Reengineering is the fundamental redesign of a business, often resulting in reduction in size and markets.

Accepted Answer

A) True 
 B)False

Question 15

Smaller firms tend to:

Accepted Answer

A)  stifle innovation and flexibility. 
B)  not provide a comprehensive learning experience to their employees. 
C)  keep larger firms competitive. 
D)  provide reduced employee job satisfaction. 
A)  stifle innovation and flexibility. 
B)  not provide a comprehensive learning experience to their employees. 
C)  keep larger firms competitive. 
D)  provide reduced employee job satisfaction.

Question 16

Personal failures are more common than formal failures.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is true about small businesses, entrepreneurship, and educational institutions?

Accepted Answer

A)  Universities have discovered that by teaching entrepreneurship they are able to tap into a vast pool of funds to support such programs. 
B)  Community colleges are reluctant to offer courses for small business owners. 
C)  Today more students think working for big corporations is a safer haven than self-employment. 
D)  Small business management is not an academically respected discipline. 
A)  Universities have discovered that by teaching entrepreneurship they are able to tap into a vast pool of funds to support such programs. 
B)  Community colleges are reluctant to offer courses for small business owners. 
C)  Today more students think working for big corporations is a safer haven than self-employment. 
D)  Small business management is not an academically respected discipline.

Question 18

Which of the following is a problem faced by small businesses today?

Accepted Answer

A)  Lack of magazines focusing on issues related to small businesses 
B)  Lack of risk takers 
C)  No training at colleges and universities 
D)  Unexpected growth and financing issues 
A)  Lack of magazines focusing on issues related to small businesses 
B)  Lack of risk takers 
C)  No training at colleges and universities 
D)  Unexpected growth and financing issues

Question 19

One of the causes of discontinuance or failure is that the amount of time and/or physical effort demanded of the small business manager was not recognized and/or planned for.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is true about the typical growth pattern of a small business?

Accepted Answer

A)  Owners do not need to give managers a financial interest in the business to hold them. 
B)  The length of service of professional managers (as opposed to owner-managers) in small businesses tends to be relatively long. 
C)  Owners typically hire professional managers as soon as they start their business. 
D)  Professional managers who work in small companies move from one company to another as they progress upward in rank and earnings. 
A)  Owners do not need to give managers a financial interest in the business to hold them. 
B)  The length of service of professional managers (as opposed to owner-managers) in small businesses tends to be relatively long. 
C)  Owners typically hire professional managers as soon as they start their business. 
D)  Professional managers who work in small companies move from one company to another as they progress upward in rank and earnings.

In formal failures, the owner who cannot succeed voluntarily terminates the business.

The growth rate of the general workforce is always greater than the growth rate of self-employment.

Which of the following best describes one of the contributions of small businesses?

Which of the following is a reason for starting a small business?

Mention the features of a small business to be classified as "small."

What are business incubators? How do they help young firms succeed?

A _____ is one that is independently owned and operated and is not dominant in its field of operation.

Which of the following is true about small businesses?

Which of the following is the main goal of an incubation program?

Nowadays, smaller firms are exempt from many federal regulations and even some state and local ones.

Mention the characteristics of successful owners of small businesses.

One of the unique contributions of small businesses is that they keep larger firms competitive.

Which of the following industries is expected to produce the most new jobs by the year 2018?

Reengineering is the fundamental redesign of a business, often resulting in reduction in size and markets.

Smaller firms tend to:

Personal failures are more common than formal failures.

Which of the following is true about small businesses, entrepreneurship, and educational institutions?

Which of the following is a problem faced by small businesses today?

One of the causes of discontinuance or failure is that the amount of time and/or physical effort demanded of the small business manager was not recognized and/or planned for.

Which of the following is true about the typical growth pattern of a small business?

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

In formal failures, the owner who cannot succeed voluntarily terminates the business.

The growth rate of the general workforce is always greater than the growth rate of self-employment.

Which of the following best describes one of the contributions of small businesses?

Which of the following is a reason for starting a small business?

Mention the features of a small business to be classified as "small."

What are business incubators? How do they help young firms succeed?

A _____ is one that is independently owned and operated and is not dominant in its field of operation.

Which of the following is true about small businesses?

Which of the following is the main goal of an incubation program?

Nowadays, smaller firms are exempt from many federal regulations and even some state and local ones.

Mention the characteristics of successful owners of small businesses.

One of the unique contributions of small businesses is that they keep larger firms competitive.

Which of the following industries is expected to produce the most new jobs by the year 2018?

Reengineering is the fundamental redesign of a business, often resulting in reduction in size and markets.

Smaller firms tend to:

Personal failures are more common than formal failures.

Which of the following is true about small businesses, entrepreneurship, and educational institutions?

Which of the following is a problem faced by small businesses today?

One of the causes of discontinuance or failure is that the amount of time and/or physical effort demanded of the small business manager was not recognized and/or planned for.

Which of the following is true about the typical growth pattern of a small business?

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