Question 1

Since creating a detailed business plan is almost impossible, entrepreneurs should focus on the other tasks needed to get their firm started.

Accepted Answer

A) True 
 B)False

Question 2

Enterprise zones are specific geographic areas that

Accepted Answer

A)  the government has set aside for major corporations that promise to spend at least $10 million to create new jobs. 
B)  attract business investment by offering lower taxes and government support for development. 
C)  the government has recognized as having the fastest growth rates in the country. 
D)  are characterized by government ownership of small businesses. 
A)  the government has set aside for major corporations that promise to spend at least $10 million to create new jobs. 
B)  attract business investment by offering lower taxes and government support for development. 
C)  the government has recognized as having the fastest growth rates in the country. 
D)  are characterized by government ownership of small businesses.

Question 3

Small businesses

Accepted Answer

A)  deal with similar management issues that large companies face. 
B)  deal with very different management issues due to the very different management challenges experienced by small businesses. 
C)  do not seek government funding due to the fact that the federal government has made it very clear that it must support large operations before small operations. 
D)  concern themselves with state-of-the-art information and accounting technology but not employee relations due to their challenge to financially support employee benefits programs. 
A)  deal with similar management issues that large companies face. 
B)  deal with very different management issues due to the very different management challenges experienced by small businesses. 
C)  do not seek government funding due to the fact that the federal government has made it very clear that it must support large operations before small operations. 
D)  concern themselves with state-of-the-art information and accounting technology but not employee relations due to their challenge to financially support employee benefits programs.

Question 4

Enterprise zones offer lower tax rates and government assistance to attract private business investment.

Accepted Answer

A) True 
 B)False

Question 5

Mini-Case
Pepe Pieman believes that pizza is a much more versatile meal than most people realize. As the national marketing manager for Pizza Pals, he has watched how consumers ate up barbecue pizza, Hawaiian pizza, Mexican pizza, and other new and unique combinations. His superiors, however, met his suggestions for other unusual pizzas with a negative response. Even some of his teammates laughed at his ideas. Pepe's confidence in his ability to understand the market has led him to focus on planning a business of his own. Pepe realizes that he will take a risk when he leaves his job with Pizza Pals and sets off on a new endeavor: Pepe's Pizzazzeria. Pepe is excited about the potential of profitably catering to the unmet desires of pizza consumers.
-Since Pepe has worked in marketing for a large corporation before getting into the pizza business

Accepted Answer

A)  there is no need to consider an entrepreneurial team for start-up due to the fact that all other management functions are served by marketing. 
B)  he can skip any marketing research steps that the SBA recommends. 
C)  he knows that the type of business he wants to start may be difficult to develop, but it has a tremendous amount of security due to its promise of long-term survival. 
D)  he plans to put together an entrepreneurial team of experts that will complement his expertise. 
A)  there is no need to consider an entrepreneurial team for start-up due to the fact that all other management functions are served by marketing. 
B)  he can skip any marketing research steps that the SBA recommends. 
C)  he knows that the type of business he wants to start may be difficult to develop, but it has a tremendous amount of security due to its promise of long-term survival. 
D)  he plans to put together an entrepreneurial team of experts that will complement his expertise.

Question 6

The SBA's ________ program provides export-financing opportunities for small businesses.

Accepted Answer

A)  Global Trade funding 
B)  Homeland Security funding 
C)  Export Express loan 
D)  International Monetary loan 
A)  Global Trade funding 
B)  Homeland Security funding 
C)  Export Express loan 
D)  International Monetary loan

Question 7

Large multinational firms dominate the international market, leaving few opportunities for small businesses.

Accepted Answer

A) True 
 B)False

Question 8

Questions about how much authority to delegate and to whom, are easier issues for family-run businesses since they can't fire family.

Accepted Answer

A) True 
 B)False

Question 9

Rachel hopes to start her own business soon, but is concerned about her limited financial resources. She should save money by waiting to meet with lawyers and accountants until the business has grown and has been operating successfully for a few years.

Accepted Answer

A) True 
 B)False

Question 10

Kyle is a recent college graduate with a business degree. While still in school, he learned that as a potential small business owner, he should focus his sights on domestic business only.

Accepted Answer

A) True 
 B)False

Question 11

Angel investors are the government agencies that invest money in new companies before they go public.

Accepted Answer

A) True 
 B)False

Question 12

Since entrepreneurs are starting new businesses, experience gained from working for an established business isn't particularly helpful.

Accepted Answer

A) True 
 B)False

Question 13

A major advantage of preparing a formal business plan is that prospective entrepreneurs must identify the resources and activities required to successfully operate their proposed venture.

Accepted Answer

A) True 
 B)False

Question 14

A business is considered small by comparing its size to others in the same industry.

Accepted Answer

A) True 
 B)False

Question 15

The Spotlight on Small Business box is testimonial to the fact that entrepreneurs are problem solvers.

Accepted Answer

A) True 
 B)False

Question 16

Austin, Aiden, and Zara wanted to open A2Z Sports Bar that serves a unique offering of beer, weekend entertainment, and a limited menu of appetizers. In one of the preliminary meetings, Zara presented a list of reasons that small businesses fail. Although many of the ideas on this list were applicable to many types of business, one challenge pertained specifically to the restaurant and bar business. The challenge he referred to was

Accepted Answer

A)  underestimating how much time it will take to build a market. 
B)  borrowing money without planning just how and when to pay it back. 
C)  carrying habits of personal extravagance into the business. 
D)  some of the easiest businesses to start have the least growth prospects and greatest failure rates. 
A)  underestimating how much time it will take to build a market. 
B)  borrowing money without planning just how and when to pay it back. 
C)  carrying habits of personal extravagance into the business. 
D)  some of the easiest businesses to start have the least growth prospects and greatest failure rates.

Question 17

Micropreneurs are motivated by a desire to have both a satisfying family life and rewarding work.

Accepted Answer

A) True 
 B)False

Question 18

As an employee of a small business, Dante has heard the owner is getting ready to retire. Since Dante would like to buy the business, he needs to determine how much the business is worth. In order to determine a fair price for the business, Dante should add up the market value of all of the firm's physical assets such as buildings, machinery, equipment, and inventory, and willingly pay this amount for the business.

Accepted Answer

A) True 
 B)False

Question 19

Due in part to government support, the majority of U.S. small businesses are involved in exporting.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following statements accurately depicts an advantage that small business has over big business?

Accepted Answer

A)  If the small business owner can project his business as being big, if not very similar to big businesses that sell in the same industry, then he will realize a significant advantage. 
B)  The size of the business (small being better in this case) is an important consideration in the management of legal, payroll, and tax concerns. 
C)  A small business can maneuver and change quicker than most large businesses can. It can react to market conditions and customer concerns much faster. 
D)  The slower pace of small businesses translates into better quality for its customers. 
A)  If the small business owner can project his business as being big, if not very similar to big businesses that sell in the same industry, then he will realize a significant advantage. 
B)  The size of the business (small being better in this case) is an important consideration in the management of legal, payroll, and tax concerns. 
C)  A small business can maneuver and change quicker than most large businesses can. It can react to market conditions and customer concerns much faster. 
D)  The slower pace of small businesses translates into better quality for its customers.

Exam 6: Entrepreneurship and Starting a Small Business

Since creating a detailed business plan is almost impossible, entrepreneurs should focus on the other tasks needed to get their firm started.

Enterprise zones are specific geographic areas that

Small businesses

Enterprise zones offer lower tax rates and government assistance to attract private business investment.

The SBA's ________ program provides export-financing opportunities for small businesses.

Large multinational firms dominate the international market, leaving few opportunities for small businesses.

Questions about how much authority to delegate and to whom, are easier issues for family-run businesses since they can't fire family.

Rachel hopes to start her own business soon, but is concerned about her limited financial resources. She should save money by waiting to meet with lawyers and accountants until the business has grown and has been operating successfully for a few years.

Kyle is a recent college graduate with a business degree. While still in school, he learned that as a potential small business owner, he should focus his sights on domestic business only.

Angel investors are the government agencies that invest money in new companies before they go public.

Since entrepreneurs are starting new businesses, experience gained from working for an established business isn't particularly helpful.

A major advantage of preparing a formal business plan is that prospective entrepreneurs must identify the resources and activities required to successfully operate their proposed venture.

A business is considered small by comparing its size to others in the same industry.

The Spotlight on Small Business box is testimonial to the fact that entrepreneurs are problem solvers.

Micropreneurs are motivated by a desire to have both a satisfying family life and rewarding work.

Due in part to government support, the majority of U.S. small businesses are involved in exporting.

Which of the following statements accurately depicts an advantage that small business has over big business?

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding Economics and How It Affects Business

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Management and Leadership

Structuring Organizations for Todays Challenges

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemanagement Issues

Marketing: Helping Buyers Buy

Developing and Pricing Goods and Services

Distributing Products

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money, Financial Institutions, and the Federal Reserve

Working Within the Legal Environment

Using Technology to Manage Information

Managing Risk

Managing Personal Finances

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