Question 1

Many small business owners report that they needed assistance with accounting when they first started businesses.

Accepted Answer

A) True 
 B)False

Question 2

Prior to creating a business plan, discussions with bankers and investors can help entrepreneurs determine the amount of financing available.

Accepted Answer

A) True 
 B)False

Question 3

Antoine is considering marketing his bicycles in Brazil. If he enters the Brazilian market, he is likely to learn that

Accepted Answer

A)  some cultures like dealing with individuals from smaller companies rather than large companies. 
B)  he will not be able to keep up with demand. 
C)  most foreign cultures prefer large company relationships to small company relationships. 
D)  there is strong resistance of Brazilian firms with respect to American products. 
A)  some cultures like dealing with individuals from smaller companies rather than large companies. 
B)  he will not be able to keep up with demand. 
C)  most foreign cultures prefer large company relationships to small company relationships. 
D)  there is strong resistance of Brazilian firms with respect to American products.

Question 4

Getting a business plan into the hands of the right people is nearly as important as getting the right information in the plan.

Accepted Answer

A) True 
 B)False

Question 5

The easiest businesses to start are those that offer the greatest profit potential.

Accepted Answer

A) True 
 B)False

Question 6

What is an entrepreneurial team? What benefits does a team offer compared to an individual entrepreneur?

Accepted Answer

a. Entrepreneurial teams bring experienc

Question 7

Business owners who prefer to maintain their businesses at a manageable size are called

Accepted Answer

A)  macropreneurs. 
B)  intrapreneurs. 
C)  micropreneurs. 
D)  home workers. 
A)  macropreneurs. 
B)  intrapreneurs. 
C)  micropreneurs. 
D)  home workers.

Question 8

Which of the following is a characteristic of successful entrepreneurs?

Accepted Answer

A)  Power-seeking 
B)  Relies heavily on others who believe in the business 
C)  Willingness and desire to follow others 
D)  Action-oriented 
A)  Power-seeking 
B)  Relies heavily on others who believe in the business 
C)  Willingness and desire to follow others 
D)  Action-oriented

Question 9

Successful entrepreneurial teams

Accepted Answer

A)  quickly organize themselves like large corporations. 
B)  assign only one person to new product innovation. 
C)  bring a variety of talent to the business venture. 
D)  outsource most of the details of innovation. 
A)  quickly organize themselves like large corporations. 
B)  assign only one person to new product innovation. 
C)  bring a variety of talent to the business venture. 
D)  outsource most of the details of innovation.

Question 10

Micropreneurs is a term used to describe entrepreneurs who focus on the continued growth of their businesses.

Accepted Answer

A) True 
 B)False

Question 11

Isaac benefited from his experience working for an established private company that provided state-of-the-art lighting for music venues around town. Although confident that he could start his own lighting business, he had limited capital to buy the necessary equipment needed to successfully compete with established companies. Which of the following strategies would best help Isaac achieve his goal of business ownership?

Accepted Answer

A)  Begin by offering to take over management of his employer's business, allowing the owner to enjoy some leisure time. 
B)  Consider working for a major corporation, live modestly, and save until he has sufficient funds to start his business. 
C)  Enroll in the closest university and apply for student loans. 
D)  Open his business and trust that his work experience will bring him success even with insufficient capital. 
A)  Begin by offering to take over management of his employer's business, allowing the owner to enjoy some leisure time. 
B)  Consider working for a major corporation, live modestly, and save until he has sufficient funds to start his business. 
C)  Enroll in the closest university and apply for student loans. 
D)  Open his business and trust that his work experience will bring him success even with insufficient capital.

Question 12

Enterprise zones and investor visas are examples of

Accepted Answer

A)  government policies that favor large corporations rather than small businesses. 
B)  government programs that encourage economic growth through entrepreneurship. 
C)  government policies designed to encourage intrapreneurs. 
D)  examples of private initiatives to reduce the government's role in the economy. 
A)  government policies that favor large corporations rather than small businesses. 
B)  government programs that encourage economic growth through entrepreneurship. 
C)  government policies designed to encourage intrapreneurs. 
D)  examples of private initiatives to reduce the government's role in the economy.

Question 13

A good business plan will

Accepted Answer

A)  focus on the big picture and omit the small details of operating the business. 
B)  describe all aspects of the business, including product, the target market, the nature of the competition, any financial resources, and the owner's qualifications. 
C)  be purposefully vague, since specifics can restrict creativity and flexibility. 
D)  focus on the nature of the business and the target market, omitting personal information about the owner in order to avoid personality issues. 
A)  focus on the big picture and omit the small details of operating the business. 
B)  describe all aspects of the business, including product, the target market, the nature of the competition, any financial resources, and the owner's qualifications. 
C)  be purposefully vague, since specifics can restrict creativity and flexibility. 
D)  focus on the nature of the business and the target market, omitting personal information about the owner in order to avoid personality issues.

Question 14

Antonio works for a textbook publisher. However, his dream is to establish a home-based business providing his services to a variety of publishers. Antonio's primary goal is to escape the 9 to 5 world of corporate publishing and to enjoy the opportunity of working for himself. Antonio is an example of a micropreneur.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following best describes entrepreneurial personality traits?

Accepted Answer

A)  Tolerant of uncertainty and highly energetic 
B)  Risk averse and self-nurturing 
C)  Appreciative of direction from others and risk averse 
D)  Preference for working fewer hours and letting others do the footwork 
A)  Tolerant of uncertainty and highly energetic 
B)  Risk averse and self-nurturing 
C)  Appreciative of direction from others and risk averse 
D)  Preference for working fewer hours and letting others do the footwork

Question 16

One of the greatest advantages that small businesses have over larger ones is the ability to know their customers better and to adapt quickly to the customers' needs.

Accepted Answer

A) True 
 B)False

Question 17

Francisco came to the U.S. on a swimming scholarship. After a few months of frustration with trying to find the swim goggles he prefers from home, he created a website that selling specialty goggles for swimming, skiing, and snowboarding. Before launching the website and filling orders, Francisco spent a few months going to swim meets and gathering preferences about goggles from other international swimmers. Francisco's actions

Accepted Answer

A)  showed that he had a ready market for this product. 
B)  demonstrated that he had little experience with this product. 
C)  showed that he was promoting the website before it launched. 
D)  demonstrated his need to better understand the market. 
A)  showed that he had a ready market for this product. 
B)  demonstrated that he had little experience with this product. 
C)  showed that he was promoting the website before it launched. 
D)  demonstrated his need to better understand the market.

Question 18

In the business world, a market consists of those people who have a willingness to buy a particular product.

Accepted Answer

A) True 
 B)False

Question 19

The SBA may guarantee loans made by a financial institution and repay them if the borrowers stop making payments.

Accepted Answer

A) True 
 B)False

Question 20

Entrepreneurship is

Accepted Answer

A)  managing businesses for others. 
B)  a controlling interest in the ownership of a corporation. 
C)  managing businesses that operate in multiple countries. 
D)  accepting the risk of starting and running a business. 
A)  managing businesses for others. 
B)  a controlling interest in the ownership of a corporation. 
C)  managing businesses that operate in multiple countries. 
D)  accepting the risk of starting and running a business.

Exam 6: Entrepreneurship and Starting a Small Business

Many small business owners report that they needed assistance with accounting when they first started businesses.

Prior to creating a business plan, discussions with bankers and investors can help entrepreneurs determine the amount of financing available.

Antoine is considering marketing his bicycles in Brazil. If he enters the Brazilian market, he is likely to learn that

Getting a business plan into the hands of the right people is nearly as important as getting the right information in the plan.

The easiest businesses to start are those that offer the greatest profit potential.

What is an entrepreneurial team? What benefits does a team offer compared to an individual entrepreneur?

Business owners who prefer to maintain their businesses at a manageable size are called

Which of the following is a characteristic of successful entrepreneurs?

Successful entrepreneurial teams

Micropreneurs is a term used to describe entrepreneurs who focus on the continued growth of their businesses.

Enterprise zones and investor visas are examples of

A good business plan will

Which of the following best describes entrepreneurial personality traits?

One of the greatest advantages that small businesses have over larger ones is the ability to know their customers better and to adapt quickly to the customers' needs.

In the business world, a market consists of those people who have a willingness to buy a particular product.

The SBA may guarantee loans made by a financial institution and repay them if the borrowers stop making payments.

Entrepreneurship is

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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