Question 1

Entrepreneurs seeking financial support from bankers and potential investors should

Accepted Answer

A)  be vague regarding their creative business plan to avoid having their idea stolen. 
B)  seek the bankers' and investors' assistance in developing their business plan. 
C)  create a detailed business plan to help the bankers and investors understand why this business will succeed. 
D)  ask for a relatively small amount of capital initially, postponing a full funding request until the investors better understand the business concept. 
A)  be vague regarding their creative business plan to avoid having their idea stolen. 
B)  seek the bankers' and investors' assistance in developing their business plan. 
C)  create a detailed business plan to help the bankers and investors understand why this business will succeed. 
D)  ask for a relatively small amount of capital initially, postponing a full funding request until the investors better understand the business concept.

Question 2

Entrepreneurship is another name for management.

Accepted Answer

A) True 
 B)False

Question 3

The entrepreneur's integrity is not relevant to bankers when determining the creditworthiness of a business loan.

Accepted Answer

A) True 
 B)False

Question 4

The Small Business Administration's microloan program awards loans to entrepreneurs based primarily on their

Accepted Answer

A)  collateral. 
B)  credit history. 
C)  previous business success. 
D)  integrity and sound business idea. 
A)  collateral. 
B)  credit history. 
C)  previous business success. 
D)  integrity and sound business idea.

Question 5

The position of our government is to restrict foreign entrepreneurs from operating within the U.S.

Accepted Answer

A) True 
 B)False

Question 6

Successful entrepreneurs are exclusively motivated by the desire to become rich.

Accepted Answer

A) True 
 B)False

Question 7

A market consists of potential buyers of a good or service. However, for a market to exist

Accepted Answer

A)  the business requires wholesalers and retailers. 
B)  one firm must dominate in sales and product development. 
C)  people must have unsatisfied wants and needs as well as a willingness and ability to buy. 
D)  the product must be laboratory tested and approved by the Food and Drug Administration (FD
A) . 
A)  the business requires wholesalers and retailers. 
B)  one firm must dominate in sales and product development. 
C)  people must have unsatisfied wants and needs as well as a willingness and ability to buy. 
D)  the product must be laboratory tested and approved by the Food and Drug Administration (FD
A) .

Question 8

Tessa has just graduated with a business degree. Her job hunt should only focus on large corporations.

Accepted Answer

A) True 
 B)False

Question 9

Many entrepreneurs got the idea for their own business from their experience of working for others.

Accepted Answer

A) True 
 B)False

Question 10

Hiring family members offers the best answer to the problem of attracting qualified employees.

Accepted Answer

A) True 
 B)False

Question 11

If you plan to meet face-to-face with a banker or venture capitalist, it is not necessary to submit a business plan.

Accepted Answer

A) True 
 B)False

Question 12

A ________ refers to people with unsatisfied wants and needs who are willing and able to buy a product or service.

Accepted Answer

A)  market 
B)  consumer cooperative 
C)  consumer collective 
D)  buyer's cooperative 
A)  market 
B)  consumer cooperative 
C)  consumer collective 
D)  buyer's cooperative

Question 13

After Abby graduated from college last year, her uncle created an accounting position for her in his business. Her older brother is in charge of purchasing inventory for the store, yet often the store runs out of popular items or is overstocked with products that must be marked down to be sold. Abby is confident that her brother is more suited for handling accounting and finance, while she has a sense of what sells and how much sells. Although she has spoken with her uncle about it a couple of times, he seems reluctant to change. As the founder of the business, he may

Accepted Answer

A)  find it difficult to remove family members from positions, even if it is not good for the business. 
B)  find it difficult to retrain Abby for the job, and even though his business is losing opportunities, he will stay the course. 
C)  know that profit margins have declined, but he doesn't care. 
D)  have a bigger picture of things, and not feel the need to respond to a family member's request. 
A)  find it difficult to remove family members from positions, even if it is not good for the business. 
B)  find it difficult to retrain Abby for the job, and even though his business is losing opportunities, he will stay the course. 
C)  know that profit margins have declined, but he doesn't care. 
D)  have a bigger picture of things, and not feel the need to respond to a family member's request.

Question 14

Successful entrepreneurs rely on others for direction and support.

Accepted Answer

A) True 
 B)False

Question 15

Sofia recently applied for a microloan from the Small Business Administration. Although several conditions are important, the SBA's decision to grant or deny the loan will largely depend upon

Accepted Answer

A)  her credit history and the collateral she can offer. 
B)  her age, since microloans are only available to senior citizens. 
C)  her previous record of business success. 
D)  the soundness of her business plan, and her integrity. 
A)  her credit history and the collateral she can offer. 
B)  her age, since microloans are only available to senior citizens. 
C)  her previous record of business success. 
D)  the soundness of her business plan, and her integrity.

Question 16

Small businesses can provide more personalized service than a large corporation to overseas customers.

Accepted Answer

A) True 
 B)False

Question 17

Entrepreneurial teams increase the cooperation between marketing, production, and other functional areas of a business venture.

Accepted Answer

A) True 
 B)False

Question 18

Conversations with people who start their own business often reveal that

Accepted Answer

A)  many small business owners got their entrepreneurial idea from a previous job. 
B)  it is unusual for experienced corporate managers to start their own businesses. 
C)  the most successful entrepreneurs often start their business ventures right after high school. 
D)  most small business owners begin with significant personal wealth. 
A)  many small business owners got their entrepreneurial idea from a previous job. 
B)  it is unusual for experienced corporate managers to start their own businesses. 
C)  the most successful entrepreneurs often start their business ventures right after high school. 
D)  most small business owners begin with significant personal wealth.

Question 19

The size of the world market is about

Accepted Answer

A)  500 million 
B)  7 billion 
C)  7 million 
D)  10 trillion 
A)  500 million 
B)  7 billion 
C)  7 million 
D)  10 trillion

Question 20

Skylar is an angel investor. This means that he

Accepted Answer

A)  invests his money in new businesses with potential for growth, hoping for a good return on his investment if they go public. 
B)  creates business incubators for start-up web-based firms. 
C)  invests in nonprofits that plan to change their status when they double in size. 
D)  comes to the rescue of firms who default on their bank loans. 
A)  invests his money in new businesses with potential for growth, hoping for a good return on his investment if they go public. 
B)  creates business incubators for start-up web-based firms. 
C)  invests in nonprofits that plan to change their status when they double in size. 
D)  comes to the rescue of firms who default on their bank loans.

Exam 6: Entrepreneurship and Starting a Small Business

Entrepreneurs seeking financial support from bankers and potential investors should

Entrepreneurship is another name for management.

The entrepreneur's integrity is not relevant to bankers when determining the creditworthiness of a business loan.

The Small Business Administration's microloan program awards loans to entrepreneurs based primarily on their

The position of our government is to restrict foreign entrepreneurs from operating within the U.S.

Successful entrepreneurs are exclusively motivated by the desire to become rich.

A market consists of potential buyers of a good or service. However, for a market to exist

Tessa has just graduated with a business degree. Her job hunt should only focus on large corporations.

Many entrepreneurs got the idea for their own business from their experience of working for others.

Hiring family members offers the best answer to the problem of attracting qualified employees.

If you plan to meet face-to-face with a banker or venture capitalist, it is not necessary to submit a business plan.

A ________ refers to people with unsatisfied wants and needs who are willing and able to buy a product or service.

Successful entrepreneurs rely on others for direction and support.

Sofia recently applied for a microloan from the Small Business Administration. Although several conditions are important, the SBA's decision to grant or deny the loan will largely depend upon

Small businesses can provide more personalized service than a large corporation to overseas customers.

Entrepreneurial teams increase the cooperation between marketing, production, and other functional areas of a business venture.

Conversations with people who start their own business often reveal that

The size of the world market is about

Skylar is an angel investor. This means that he

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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