Question 1

Software designed to help create business plans has proven to be of little value because it is difficult to apply it to every business situation.

Accepted Answer

A) True 
 B)False

Question 2

Successful entrepreneurs accept the risk of failure.

Accepted Answer

A) True 
 B)False

Question 3

Independence, challenge, and opportunity are among the key reasons given by those who assume the risks of entrepreneurship.

Accepted Answer

A) True 
 B)False

Question 4

A(n) ________ is a group of experienced professionals from different areas of business who join together to develop, make, and market a new product.

Accepted Answer

A)  entrepreneurial team 
B)  joint venture 
C)  self-directed functional team 
D)  managerial task force 
A)  entrepreneurial team 
B)  joint venture 
C)  self-directed functional team 
D)  managerial task force

Question 5

As a high net worth individual, Aria searches for developing companies in need of additional funding to achieve their goals. In return for this ________, she expects to give up some percentage of ownership in the business.

Accepted Answer

A)  analysis 
B)  venture capital 
C)  corporate loan 
D)  securities investment 
A)  analysis 
B)  venture capital 
C)  corporate loan 
D)  securities investment

Question 6

Not everyone dreams of owning their own business. Identify and describe at least three attributes of successful entrepreneurs.

Accepted Answer

While students will likely identify mana

Question 7

A ________ is a written document that details the business idea, the target market and the business's competitive advantage, financial resources available for the business, and the qualification of the management.

Accepted Answer

A)  feasibility product 
B)  marketing plan 
C)  business plan 
D)  statement of intent 
A)  feasibility product 
B)  marketing plan 
C)  business plan 
D)  statement of intent

Question 8

Caleb inherited a successful dry cleaning business from his parents. Just as his parents did, he offered high-quality service to all the customers he served. As the surrounding towns grew, several customers recommended that Caleb expand the business to offer service in new locations. He chose to maintain only one operation, so as not to lose control and to keep his work life and home life balanced. Caleb is a good example of a(n) ________.

Accepted Answer

A)  small business affiliate 
B)  intrapreneur 
C)  micropreneur 
D)  enterprise zone participant 
A)  small business affiliate 
B)  intrapreneur 
C)  micropreneur 
D)  enterprise zone participant

Question 9

Northeast City College received a government grant to create a business incubator. Once completed, Northeast City College's facility will offer

Accepted Answer

A)  local government agencies assistance in obtaining funds for urban renewal. 
B)  area businesses advice on employee benefits and ways to reduce taxes. 
C)  venture capitalists an opportunity to identify new entrepreneurs. 
D)  new businesses low-cost office space with basic business services. 
A)  local government agencies assistance in obtaining funds for urban renewal. 
B)  area businesses advice on employee benefits and ways to reduce taxes. 
C)  venture capitalists an opportunity to identify new entrepreneurs. 
D)  new businesses low-cost office space with basic business services.

Question 10

A business's size is measured

Accepted Answer

A)  in relation to the number of competitors in its industry. 
B)  in relation to other firms in its industry. 
C)  in relation to the number of dominant competitors in its sector. 
D)  as small, if it participates in the services sector. 
A)  in relation to the number of competitors in its industry. 
B)  in relation to other firms in its industry. 
C)  in relation to the number of dominant competitors in its sector. 
D)  as small, if it participates in the services sector.

Question 11

Kate, a manager at a small manufacturing firm, has offered to help manage a local branch of the YMCA. Unfortunately, Kate will find that the skills acquired managing a small business will not be useful in managing a nonprofit organization.

Accepted Answer

A) True 
 B)False

Question 12

Employees of small businesses often have greater job satisfaction than do employees of larger firms. One reason for this difference in job satisfaction is that employees of small businesses often

Accepted Answer

A)  earn higher wages. 
B)  receive more vacation time. 
C)  get more respect from their bosses. 
D)  have more job security and better fringe benefits. 
A)  earn higher wages. 
B)  receive more vacation time. 
C)  get more respect from their bosses. 
D)  have more job security and better fringe benefits.

Question 13

The most common small business failures occur in businesses that are the easiest to start.

Accepted Answer

A) True 
 B)False

Question 14

To be classified as a small business, a firm must have no more than 100 employees.

Accepted Answer

A) True 
 B)False

Question 15

Many micropreneurs are home-based business owners.

Accepted Answer

A) True 
 B)False

Question 16

Successful micropreneurs require self-discipline to separate work from family responsibilities.

Accepted Answer

A) True 
 B)False

Question 17

Aside from personal savings, the only other viable source of financing for an entrepreneur would be funds available from friends and family.

Accepted Answer

A) True 
 B)False

Question 18

According to the Small Business Administration's definition, small businesses are independently owned and operated.

Accepted Answer

A) True 
 B)False

Question 19

While the Small Business Administration provides management advice to new business owners, it is not empowered to provide financial assistance.

Accepted Answer

A) True 
 B)False

Question 20

Advancements in computer technology put home-based businesses at a disadvantage.

Accepted Answer

A) True 
 B)False

Exam 6: Entrepreneurship and Starting a Small Business

Software designed to help create business plans has proven to be of little value because it is difficult to apply it to every business situation.

Successful entrepreneurs accept the risk of failure.

Independence, challenge, and opportunity are among the key reasons given by those who assume the risks of entrepreneurship.

A(n) ________ is a group of experienced professionals from different areas of business who join together to develop, make, and market a new product.

As a high net worth individual, Aria searches for developing companies in need of additional funding to achieve their goals. In return for this ________, she expects to give up some percentage of ownership in the business.

Not everyone dreams of owning their own business. Identify and describe at least three attributes of successful entrepreneurs.

A ________ is a written document that details the business idea, the target market and the business's competitive advantage, financial resources available for the business, and the qualification of the management.

Northeast City College received a government grant to create a business incubator. Once completed, Northeast City College's facility will offer

A business's size is measured

Kate, a manager at a small manufacturing firm, has offered to help manage a local branch of the YMCA. Unfortunately, Kate will find that the skills acquired managing a small business will not be useful in managing a nonprofit organization.

Employees of small businesses often have greater job satisfaction than do employees of larger firms. One reason for this difference in job satisfaction is that employees of small businesses often

The most common small business failures occur in businesses that are the easiest to start.

To be classified as a small business, a firm must have no more than 100 employees.

Many micropreneurs are home-based business owners.

Successful micropreneurs require self-discipline to separate work from family responsibilities.

Aside from personal savings, the only other viable source of financing for an entrepreneur would be funds available from friends and family.

According to the Small Business Administration's definition, small businesses are independently owned and operated.

While the Small Business Administration provides management advice to new business owners, it is not empowered to provide financial assistance.

Advancements in computer technology put home-based businesses at a disadvantage.

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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