Question 1

Small business owners interested in venture capital funding should know that venture capitalists ________.

Accepted Answer

A) charge interest rates for balances owed and set monthly minimum repayment requirements 
B) fund multiple projects but only with a limited amount of money for each 
C) provide funding only for capital expenses such as buildings and equipment 
D) look for the potential of a public stock offering before investing in a company 
A) charge interest rates for balances owed and set monthly minimum repayment requirements 
B) fund multiple projects but only with a limited amount of money for each 
C) provide funding only for capital expenses such as buildings and equipment 
D) look for the potential of a public stock offering before investing in a company D

Question 2

Which of the following types of entrepreneurs does NOT become involved in starting his or her own business?

Accepted Answer

A) growth entrepreneur 
B) intrapreneur 
C) quasipreneur 
D) contract entrepreneur 
A) growth entrepreneur 
B) intrapreneur 
C) quasipreneur 
D) contract entrepreneur B

Question 3

Studies show participation in an incubation program ________.

Accepted Answer

A) increase the success rate of a startup company by as much as 50 percent 
B) increase the success rate of a startup company by as much as 60 percent 
C) increase the success rate of a startup company by as much as 70 percent 
D) increase the success rate of a startup company by as much as 90 percent 
A) increase the success rate of a startup company by as much as 50 percent 
B) increase the success rate of a startup company by as much as 60 percent 
C) increase the success rate of a startup company by as much as 70 percent 
D) increase the success rate of a startup company by as much as 90 percent D

Question 4

A(n)________ is someone who takes the risk of creating, organizing and operating a business, usually to satisfy an unmet need in the marketplace.

Accepted Answer

A) business owner 
B) entrepreneur 
C) venture capitalist 
D) innovator 
A) business owner 
B) entrepreneur 
C) venture capitalist 
D) innovator

Question 5

Which of the following statements is TRUE about franchising?

Accepted Answer

A) Franchisees enjoy guaranteed minimum annual revenues based on their territory. 
B) Franchisers encourage franchisees to be independent and creative in running their operations. 
C) Franchisees have relatively lower risk than other small business startups. 
D) Franchisers conduct local market research for each of their franchisees. 
A) Franchisees enjoy guaranteed minimum annual revenues based on their territory. 
B) Franchisers encourage franchisees to be independent and creative in running their operations. 
C) Franchisees have relatively lower risk than other small business startups. 
D) Franchisers conduct local market research for each of their franchisees.

Question 6

Which of the following should a business owner create monthly?

Accepted Answer

A) marketing and operational plans 
B) financial statements and budget reports 
C) mission statement 
D) risk analysis 
A) marketing and operational plans 
B) financial statements and budget reports 
C) mission statement 
D) risk analysis

Question 7

Identifying your competitors is part of a(n)________.

Accepted Answer

A) operational plan 
B) risk analysis 
C) financial plan 
D) marketing plan 
A) operational plan 
B) risk analysis 
C) financial plan 
D) marketing plan

Question 8

Aside from legal liability, what other primary factor should a small-business owner consider before deciding which structure to choose for his business?

Accepted Answer

A) type of product or service 
B) which structure would best appeal to investors 
C) tax considerations 
D) anticipated number of employees 
A) type of product or service 
B) which structure would best appeal to investors 
C) tax considerations 
D) anticipated number of employees

Question 9

Joanne is considering purchasing an existing day spa. Which of the following should she assume about the current employees of the day spa?

Accepted Answer

A) Since all employees have been working at the spa for at least a year, they are likely to be competent employees. 
B) Since the current owner has indicated that employee morale is high, it is unlikely that there would be problems with the current employees. 
C) There may be unanticipated problems with the current employees that Joanne could inherit if she buys the day spa. 
D) Most, if not all, of the current employees will choose to stay if Joanne buys the day spa. 
A) Since all employees have been working at the spa for at least a year, they are likely to be competent employees. 
B) Since the current owner has indicated that employee morale is high, it is unlikely that there would be problems with the current employees. 
C) There may be unanticipated problems with the current employees that Joanne could inherit if she buys the day spa. 
D) Most, if not all, of the current employees will choose to stay if Joanne buys the day spa.

Question 10

________ is the process of performing research and analysis of a business to uncover any hidden problems associated with it.

Accepted Answer

A) Business assessment 
B) Due diligence 
C) Risk auditing 
D) Valuation 
A) Business assessment 
B) Due diligence 
C) Risk auditing 
D) Valuation

Question 11

Marge designs an innovative and fashionable laptop bag, but feels she lacks experience to turn her creation into a viable business. Marge's BEST option is to ________.

Accepted Answer

A) license the idea for selling an innovative bag to someone else 
B) recognize that she lacks the business savvy to start a business 
C) put together an entrepreneurial team to market the bag 
D) overcome her doubts and try to market the bag herself 
A) license the idea for selling an innovative bag to someone else 
B) recognize that she lacks the business savvy to start a business 
C) put together an entrepreneurial team to market the bag 
D) overcome her doubts and try to market the bag herself

Question 12

What would be the GREATEST advantage of having a partner as opposed to having an advisory board?

Accepted Answer

A) A partner would be less likely to disagree with the other owner's ideas. 
B) A partner would be more committed to the success of the business than an advisory board. 
C) A partner would be able to make decisions that differed from that of the other owner. 
D) A partner would provide more varied perspectives than that of an advisory board. 
A) A partner would be less likely to disagree with the other owner's ideas. 
B) A partner would be more committed to the success of the business than an advisory board. 
C) A partner would be able to make decisions that differed from that of the other owner. 
D) A partner would provide more varied perspectives than that of an advisory board.

Question 13

Jodi owns a business that designs and creates lingerie. In an effort to get her product into as many stores as possible, Jodi has been lenient on the terms of collection, allowing stores at least 30 days credit. As a result, it is taking her too long to collect payments and her revenues are very low. What is the MOST likely cause of Jodi's business difficulties?

Accepted Answer

A) Jodi is not developing enough goodwill. 
B) Jodi is trying to expand her business too rapidly. 
C) Jodi is not adequately managing the financial aspects of her business. 
D) Jodi is spending too much of her time on product design. 
A) Jodi is not developing enough goodwill. 
B) Jodi is trying to expand her business too rapidly. 
C) Jodi is not adequately managing the financial aspects of her business. 
D) Jodi is spending too much of her time on product design.

Question 14

Which of the following should you do when borrowing money from friends or family to finance a new business?

Accepted Answer

A) assure them that your business will quickly become profitable 
B) take steps to protect them from any business liabilities 
C) provide them with a contingency plan for repayment 
D) assure them that you have done comprehensive market research 
A) assure them that your business will quickly become profitable 
B) take steps to protect them from any business liabilities 
C) provide them with a contingency plan for repayment 
D) assure them that you have done comprehensive market research

Question 15

The quickest and easiest way to start a small business is by establishing a ________.

Accepted Answer

A) sole proprietorship 
B) general partnership 
C) limited liability company 
D) corporation 
A) sole proprietorship 
B) general partnership 
C) limited liability company 
D) corporation

Question 16

Which of the following is NOT a disadvantage of franchising?

Accepted Answer

A) lack of control 
B) work load 
C) competition 
D) brand recognition 
A) lack of control 
B) work load 
C) competition 
D) brand recognition

Question 17

Lifestyle entrepreneurs ________.

Accepted Answer

A) create upscale products and services that appeal to affluent customers 
B) want flexibility and freedom in the way they balance their personal and work lives 
C) create programs that help people live in a more environmentally responsible manner 
D) anticipate and take advantage of upcoming trends in fashion and home design 
A) create upscale products and services that appeal to affluent customers 
B) want flexibility and freedom in the way they balance their personal and work lives 
C) create programs that help people live in a more environmentally responsible manner 
D) anticipate and take advantage of upcoming trends in fashion and home design

Question 18

Venture capitalists prefer to invest in innovative companies that have just begun operating.

Accepted Answer

A) True 
 B)False

Question 19

Gary Smith, owner of a small business in San Diego, heard that the Small Business Administration will hold a series of workshops in his city. Which of the following topics is MOST likely to be included in the Small Business Administration's workshops?

Accepted Answer

A) creating a business plan 
B) lobbying 
C) filing for unemployment 
D) retirement planning 
A) creating a business plan 
B) lobbying 
C) filing for unemployment 
D) retirement planning

Question 20

In the United States, small businesses hire a larger proportion of part-time workers than large corporations do.

Accepted Answer

A) True 
 B)False

Small business owners interested in venture capital funding should know that venture capitalists ________.

Which of the following types of entrepreneurs does NOT become involved in starting his or her own business?

Studies show participation in an incubation program ________.

A(n)________ is someone who takes the risk of creating, organizing and operating a business, usually to satisfy an unmet need in the marketplace.

Which of the following statements is TRUE about franchising?

Which of the following should a business owner create monthly?

Identifying your competitors is part of a(n)________.

Aside from legal liability, what other primary factor should a small-business owner consider before deciding which structure to choose for his business?

Joanne is considering purchasing an existing day spa. Which of the following should she assume about the current employees of the day spa?

________ is the process of performing research and analysis of a business to uncover any hidden problems associated with it.

Marge designs an innovative and fashionable laptop bag, but feels she lacks experience to turn her creation into a viable business. Marge's BEST option is to ________.

What would be the GREATEST advantage of having a partner as opposed to having an advisory board?

Which of the following should you do when borrowing money from friends or family to finance a new business?

The quickest and easiest way to start a small business is by establishing a ________.

Which of the following is NOT a disadvantage of franchising?

Lifestyle entrepreneurs ________.

Venture capitalists prefer to invest in innovative companies that have just begun operating.

Gary Smith, owner of a small business in San Diego, heard that the Small Business Administration will hold a series of workshops in his city. Which of the following topics is MOST likely to be included in the Small Business Administration's workshops?

In the United States, small businesses hire a larger proportion of part-time workers than large corporations do.

Business in the United States

Economics and Banking

Ethics and Social Responsibility

Business in a Global Economy

Forms of Business Ownership

Functions and Skills of Management

Motivation, Leadership, and Teamwork

Human Resources and Labor Relations

Business Technology: Management Information Systems

Production and Operations Management

Marketing and Consumer Behavior

Product Development and Pricing Strategies

Promotion and Distribution

Financing and Tracking Business Operations

Securities and Investments

Mini E-Commerce

Mini Constructing a Successful Business Plan

Mini Business Communications

Mini Finding Employment

Mini Personal Finance

Filters

Exam 5: Entrepreneurs and Small Businesses

Small business owners interested in venture capital funding should know that venture capitalists ________.

Which of the following types of entrepreneurs does NOT become involved in starting his or her own business?

Studies show participation in an incubation program ________.

A(n)________ is someone who takes the risk of creating, organizing and operating a business, usually to satisfy an unmet need in the marketplace.

Which of the following statements is TRUE about franchising?

Which of the following should a business owner create monthly?

Identifying your competitors is part of a(n)________.

Aside from legal liability, what other primary factor should a small-business owner consider before deciding which structure to choose for his business?

Joanne is considering purchasing an existing day spa. Which of the following should she assume about the current employees of the day spa?

________ is the process of performing research and analysis of a business to uncover any hidden problems associated with it.

Marge designs an innovative and fashionable laptop bag, but feels she lacks experience to turn her creation into a viable business. Marge's BEST option is to ________.

What would be the GREATEST advantage of having a partner as opposed to having an advisory board?

Which of the following should you do when borrowing money from friends or family to finance a new business?

The quickest and easiest way to start a small business is by establishing a ________.

Which of the following is NOT a disadvantage of franchising?

Lifestyle entrepreneurs ________.

Venture capitalists prefer to invest in innovative companies that have just begun operating.

Gary Smith, owner of a small business in San Diego, heard that the Small Business Administration will hold a series of workshops in his city. Which of the following topics is MOST likely to be included in the Small Business Administration's workshops?

In the United States, small businesses hire a larger proportion of part-time workers than large corporations do.

Business in the United States

Economics and Banking

Ethics and Social Responsibility

Business in a Global Economy

Forms of Business Ownership

Functions and Skills of Management

Motivation, Leadership, and Teamwork

Human Resources and Labor Relations

Business Technology: Management Information Systems

Production and Operations Management

Marketing and Consumer Behavior

Product Development and Pricing Strategies

Promotion and Distribution

Financing and Tracking Business Operations

Securities and Investments

Mini E-Commerce

Mini Constructing a Successful Business Plan

Mini Business Communications

Mini Finding Employment

Mini Personal Finance

Filters