Question 1

Micropreneurs are exempt from the local ordinances that restrict home-based businesses from operating in residential areas.

Accepted Answer

A) True 
 B)False

Question 2

Because of the stress of being in business for yourself, it's important that entrepreneurs have people around them to help replenish their enthusiasm.

Accepted Answer

A) True 
 B)False

Question 3

Entrepreneurship involves accepting the risk of starting and running a business.

Accepted Answer

A) True 
 B)False

Question 4

From a competitive standpoint, small businesses cannot expect to successfully compete with large corporations in international markets.

Accepted Answer

A) True 
 B)False

Question 5

Offering to manage an established business for a percentage of the profits plus a salary offers experience to the would-be entrepreneur and free time to the business owner.

Accepted Answer

A) True 
 B)False

Question 6

The United States government views entrepreneurship as a result of an individual's self-motivation. The government can do very little to encourage an individual to become an entrepreneur.

Accepted Answer

A) True 
 B)False

Question 7

A detailed written statement that describes the nature of the business, the target market, the firm's competitive advantages, as well as the owner's resources and qualifications is a

Accepted Answer

A)  business plan. 
B)  entrepreneurial mission statement. 
C)  profit and loss statement. 
D)  professional action plan. 
A)  business plan. 
B)  entrepreneurial mission statement. 
C)  profit and loss statement. 
D)  professional action plan.

Question 8

Victor is a dreamer rather than a doer. This will make him an ideal entrepreneur since their job is to be creative and develop new ideas that are then implemented by others.

Accepted Answer

A) True 
 B)False

Question 9

Commercial loan officers serve as a resource for small business owners for information regarding risk management.

Accepted Answer

A) True 
 B)False

Question 10

Online businesses avoid the risk of failure faced by traditional start-up businesses.

Accepted Answer

A) True 
 B)False

Question 11

Small businesses account for over 50% of the U.S.'s gross domestic product (GDP).

Accepted Answer

A) True 
 B)False

Question 12

Entrepreneurs looking for a business that gives them the best opportunity to get rich should consider starting a business in

Accepted Answer

A)  the manufacturing sector. 
B)  the food service industry. 
C)  a low-risk industry. 
D)  the agriculture sector. 
A)  the manufacturing sector. 
B)  the food service industry. 
C)  a low-risk industry. 
D)  the agriculture sector.

Question 13

Most entrepreneurs are more interested in personal achievement than in power.

Accepted Answer

A) True 
 B)False

Question 14

Business incubators provide assistance to established companies attempting to generate foreign sales.

Accepted Answer

A) True 
 B)False

Question 15

Quinn has landed a management position with a pioneering new small business after many years of working as a regional manager for a nationally known nonprofit. As Quinn starts her new job, she is likely to find that

Accepted Answer

A)  due to the significant differences in large and small firms, her previous experience will be of little value in her new position. 
B)  the principles of management are much the same at large and small firms. 
C)  nonprofit organizations are motivated by their desire to help people and so financial management is of little concern. 
D)  planning is more important to a nonprofit organization and less important to a small business so she will need to adjust the time she spends on the planning function. 
A)  due to the significant differences in large and small firms, her previous experience will be of little value in her new position. 
B)  the principles of management are much the same at large and small firms. 
C)  nonprofit organizations are motivated by their desire to help people and so financial management is of little concern. 
D)  planning is more important to a nonprofit organization and less important to a small business so she will need to adjust the time she spends on the planning function.

Question 16

Large organizations encourage intrapreneurship as a strategy to improve their profitability through new products.

Accepted Answer

A) True 
 B)False

Question 17

Discuss several ways the Small Business Administration assists entrepreneurs.

Accepted Answer

a. The SBA is a valuable source of infor

Question 18

Venture capitalists prefer investing in smaller start-up businesses in order to reduce their overall risk.

Accepted Answer

A) True 
 B)False

Question 19

Small businesses must seek advice from outside experts. In order to put together official documents such as leases, contracts, and partnership agreements, it is important to seek the advice of ________.

Accepted Answer

A)  a friend who has already started a business. 
B)  a competitor in a similar business. 
C)  an attorney. 
D)  a marketing expert. 
A)  a friend who has already started a business. 
B)  a competitor in a similar business. 
C)  an attorney. 
D)  a marketing expert.

Question 20

The Small Business Administration defines a small business as a firm that:

Accepted Answer

A)  has fewer than 100 partners. 
B)  is independently owned but not dominant in its industry. 
C)  is dominant in its industry, but small in the number of workers it employs. 
D)  has annual receipts of more than a specified amount depending upon the industry. 
A)  has fewer than 100 partners. 
B)  is independently owned but not dominant in its industry. 
C)  is dominant in its industry, but small in the number of workers it employs. 
D)  has annual receipts of more than a specified amount depending upon the industry.

Exam 6: Entrepreneurship and Starting a Small Business

Micropreneurs are exempt from the local ordinances that restrict home-based businesses from operating in residential areas.

Because of the stress of being in business for yourself, it's important that entrepreneurs have people around them to help replenish their enthusiasm.

Entrepreneurship involves accepting the risk of starting and running a business.

From a competitive standpoint, small businesses cannot expect to successfully compete with large corporations in international markets.

Offering to manage an established business for a percentage of the profits plus a salary offers experience to the would-be entrepreneur and free time to the business owner.

The United States government views entrepreneurship as a result of an individual's self-motivation. The government can do very little to encourage an individual to become an entrepreneur.

A detailed written statement that describes the nature of the business, the target market, the firm's competitive advantages, as well as the owner's resources and qualifications is a

Victor is a dreamer rather than a doer. This will make him an ideal entrepreneur since their job is to be creative and develop new ideas that are then implemented by others.

Commercial loan officers serve as a resource for small business owners for information regarding risk management.

Online businesses avoid the risk of failure faced by traditional start-up businesses.

Small businesses account for over 50% of the U.S.'s gross domestic product (GDP).

Entrepreneurs looking for a business that gives them the best opportunity to get rich should consider starting a business in

Most entrepreneurs are more interested in personal achievement than in power.

Business incubators provide assistance to established companies attempting to generate foreign sales.

Quinn has landed a management position with a pioneering new small business after many years of working as a regional manager for a nationally known nonprofit. As Quinn starts her new job, she is likely to find that

Large organizations encourage intrapreneurship as a strategy to improve their profitability through new products.

Discuss several ways the Small Business Administration assists entrepreneurs.

Venture capitalists prefer investing in smaller start-up businesses in order to reduce their overall risk.

Small businesses must seek advice from outside experts. In order to put together official documents such as leases, contracts, and partnership agreements, it is important to seek the advice of ________.

The Small Business Administration defines a small business as a firm that:

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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