Question 1

Small businesses often have an advantage in foreign markets, where customers want to deal directly with a company's top management.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is a powerful contribution made by small businesses to the U.S. economy?

Accepted Answer

A) Vitalizing rural towns 
B) Powering the stock market 
C) Vitalizing inner cities 
D) Accounting for all private sector output 
A) Vitalizing rural towns 
B) Powering the stock market 
C) Vitalizing inner cities 
D) Accounting for all private sector output

Question 3

For entrepreneurs, there is usually a correlation between dollars earned and hours worked.

Accepted Answer

A) True 
 B)False

Question 4

Identify and describe two opportunities and two threats to the success of small businesses.

Accepted Answer

​Most small businesses enjoy a number of

Question 5

BrickLane Capital Inc.recently funded Gorge LLC, a rapidly growing chain of restaurants, in exchange for a 49 percent share of ownership. BrickLane Capital is an example of a(n)_________.

Accepted Answer

A) commercial bank 
B) angel investor 
C) credit union 
D) venture capital firm 
A) commercial bank 
B) angel investor 
C) credit union 
D) venture capital firm

Question 6

The Global Entrepreneurship Monitor (GEM)shows that people living in high-income countries tend to be much more willing to start their own businesses than people who live in low-income countries.

Accepted Answer

A) True 
 B)False

Question 7

Three downsides to buying a franchise include high initial costs, the ongoing percent-of-sales royalty fees, and the franchise requirements, which, in effect, reduce the owner's independence.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following firms supported by the Small Business Administration (SBA)provides free, comprehensive counseling for small businesses from qualified volunteers?

Accepted Answer

A) An angel investor 
B) The Service Corps of Retired Executives 
C) A Small Business Development Center 
D) A venture capital firm 
A) An angel investor 
B) The Service Corps of Retired Executives 
C) A Small Business Development Center 
D) A venture capital firm

Question 9

When a large company downsizes, some of the middle-aged and older workers who are laid off find it difficult to get another job.When such workers decide to start their own businesses, they are known as _____.

Accepted Answer

A) welfare recipients. 
B) necessity entrepreneurs. 
C) post-retirement workers. 
D) baby boomers. 
A) welfare recipients. 
B) necessity entrepreneurs. 
C) post-retirement workers. 
D) baby boomers.

Question 10

Which of the following is an advantage of starting a business from scratch?

Accepted Answer

A) One does not have to deal with the prior owner's bad decisions and mistakes. 
B) The concept, organizational structure, and operating practices are already in place. 
C) Relationships with customers, suppliers, and other stakeholders are established. 
D) Getting financing and credit is less challenging as investors are previously known. 
A) One does not have to deal with the prior owner's bad decisions and mistakes. 
B) The concept, organizational structure, and operating practices are already in place. 
C) Relationships with customers, suppliers, and other stakeholders are established. 
D) Getting financing and credit is less challenging as investors are previously known.

Question 11

Rudy owns a small metal fabrication business that employs 23 workers. As the owner of a small business, one of the major advantages that Rudy will enjoy when competing against larger firms will be a lesser burden of complying with government regulations.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is an intimidating difficulty that small businesses face?

Accepted Answer

A) Obstacles in technology 
B) High health insurance costs 
C) High overhead costs 
D) Lack of customer service 
A) Obstacles in technology 
B) High health insurance costs 
C) High overhead costs 
D) Lack of customer service

Question 13

Ethan is in the process of launching his new business venture that specializes in electronic waste recycling. During this period, he is in constant touch with Lloyd, who has seen success in this niche market. Which of the following entrepreneurial development strategies is Ethan utilizing?

Accepted Answer

A) Gaining theoretical knowledge 
B) Accessing Small Business Administration (SB
A)  resources 
C) Gaining experience 
D) Learning from others 
A) Gaining theoretical knowledge 
B) Accessing Small Business Administration (SB
A)  resources 
C) Gaining experience 
D) Learning from others

Question 14

Damien is a programmer in a software firm. He has recently received a promotion and an annual bonus. He believes that this is a result of random luck as he does not work very hard.Damien has _____.

Accepted Answer

A) an external locus of control 
B) a low tolerance for failure 
C) learned optimism 
D) entrepreneurial self-reliance 
A) an external locus of control 
B) a low tolerance for failure 
C) learned optimism 
D) entrepreneurial self-reliance

Question 15

Overhead costs for small businesses:

Accepted Answer

A) tend to be much higher than they are for large businesses as a percentage of total expenses. 
B) are about the same as they are for big companies when measured as a percentage of total expenses. 
C) are often lower than they are for big companies, giving small businesses a competitive opportunity. 
D) primarily arise because small businesses must hire many consultants and advisers from outside. 
A) tend to be much higher than they are for large businesses as a percentage of total expenses. 
B) are about the same as they are for big companies when measured as a percentage of total expenses. 
C) are often lower than they are for big companies, giving small businesses a competitive opportunity. 
D) primarily arise because small businesses must hire many consultants and advisers from outside.

Question 16

Michael is a middle-aged professional who lost his job five months ago when his former employer downsized.He has been actively looking for work since then but has not been able to find a job that truly utilizes his abilities or that offers an income anywhere close to what he earned in his previous position. He is beginning to feel that the only way to survive his current situation is to start his own business. Michael might well become a:

Accepted Answer

A) venture capitalist. 
B) freelance entrepreneur. 
C) necessity entrepreneur. 
D) frictional worker. 
A) venture capitalist. 
B) freelance entrepreneur. 
C) necessity entrepreneur. 
D) frictional worker.

Question 17

Identify the core questions a business plan should address.

Accepted Answer

​A typical business plan is about 25-50

Question 18

Ted's new company is experiencing a steady decline in profit. He needs external financing to prevent his company's profits from declining further. Considering the fact that he wants to exercise ownership and control over the firm for as long as possible, Ted is likely to find angel investors who are interested in helping him meet his financial needs.

Accepted Answer

A) True 
 B)False

Question 19

The nation of Rhodasia has the lowest entrepreneurship rate globally. A new government headed by Prime Minister Arnold Wenger aims to make the country's business environment more supportive toward burgeoning entrepreneurs. Which of the following measures should be taken to increase the entrepreneurship rate in Rhodasia?

Accepted Answer

A) Increasing unemployment insurance available to employees 
B) Eliminating complex regulations placed on businesses 
C) Mandating that all businesses must provide employee healthcare 
D) Initiating employment protection laws 
A) Increasing unemployment insurance available to employees 
B) Eliminating complex regulations placed on businesses 
C) Mandating that all businesses must provide employee healthcare 
D) Initiating employment protection laws

Question 20

In the context of the U.S. economy, small businesses:

Accepted Answer

A) do not create a significant percentage of new jobs. 
B) contribute to a very small percentage of the gross domestic product. 
C) are often the first to contract when times are tough. 
D) have an insignificant impact on the state of the economy. 
A) do not create a significant percentage of new jobs. 
B) contribute to a very small percentage of the gross domestic product. 
C) are often the first to contract when times are tough. 
D) have an insignificant impact on the state of the economy.

Small businesses often have an advantage in foreign markets, where customers want to deal directly with a company's top management.

Which of the following is a powerful contribution made by small businesses to the U.S. economy?

For entrepreneurs, there is usually a correlation between dollars earned and hours worked.

Identify and describe two opportunities and two threats to the success of small businesses.

BrickLane Capital Inc.recently funded Gorge LLC, a rapidly growing chain of restaurants, in exchange for a 49 percent share of ownership. BrickLane Capital is an example of a(n)_________.

The Global Entrepreneurship Monitor (GEM)shows that people living in high-income countries tend to be much more willing to start their own businesses than people who live in low-income countries.

Three downsides to buying a franchise include high initial costs, the ongoing percent-of-sales royalty fees, and the franchise requirements, which, in effect, reduce the owner's independence.

Which of the following firms supported by the Small Business Administration (SBA)provides free, comprehensive counseling for small businesses from qualified volunteers?

When a large company downsizes, some of the middle-aged and older workers who are laid off find it difficult to get another job.When such workers decide to start their own businesses, they are known as _____.

Which of the following is an advantage of starting a business from scratch?

Rudy owns a small metal fabrication business that employs 23 workers. As the owner of a small business, one of the major advantages that Rudy will enjoy when competing against larger firms will be a lesser burden of complying with government regulations.

Which of the following is an intimidating difficulty that small businesses face?

Ethan is in the process of launching his new business venture that specializes in electronic waste recycling. During this period, he is in constant touch with Lloyd, who has seen success in this niche market. Which of the following entrepreneurial development strategies is Ethan utilizing?

Damien is a programmer in a software firm. He has recently received a promotion and an annual bonus. He believes that this is a result of random luck as he does not work very hard.Damien has _____.

Overhead costs for small businesses:

Identify the core questions a business plan should address.

In the context of the U.S. economy, small businesses:

Business Now: Change Is the Only Constant

Economics: The Framework for Business

The World Marketplace: Business Without Borders

Business Ethics and Social Responsibility: Doing Well by Doing Good

Business Communication: Creating and Delivering Messages that Matter

Business Formation: Choosing the Form that Fits

Accounting: Decision Making by the Numbers

Finance: Acquiring and Using Funds to Maximize Value

Financial Markets: Allocating Financial Resources

Marketing: Building Profitable Customer Connections

Product and Promotion: Creating and Communicating Value

Distribution and Pricing: Right Product, Right Person, Right Place, Right Price

Management, Motivation and Leadership: Bringing Business to Life

Human Resources Management: Building a Top Quality Workforce

Managing Information and Technology: Finding New Ways to Learn and Link

Operations Management: Putting It All Together

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Exam 7: Small Business and Entrepreneurship: Economic Rocket Fuel

Small businesses often have an advantage in foreign markets, where customers want to deal directly with a company's top management.

Which of the following is a powerful contribution made by small businesses to the U.S. economy?

For entrepreneurs, there is usually a correlation between dollars earned and hours worked.

Identify and describe two opportunities and two threats to the success of small businesses.

BrickLane Capital Inc.recently funded Gorge LLC, a rapidly growing chain of restaurants, in exchange for a 49 percent share of ownership. BrickLane Capital is an example of a(n)_________.

The Global Entrepreneurship Monitor (GEM)shows that people living in high-income countries tend to be much more willing to start their own businesses than people who live in low-income countries.

Three downsides to buying a franchise include high initial costs, the ongoing percent-of-sales royalty fees, and the franchise requirements, which, in effect, reduce the owner's independence.

Which of the following firms supported by the Small Business Administration (SBA)provides free, comprehensive counseling for small businesses from qualified volunteers?

When a large company downsizes, some of the middle-aged and older workers who are laid off find it difficult to get another job.When such workers decide to start their own businesses, they are known as _____.

Which of the following is an advantage of starting a business from scratch?

Rudy owns a small metal fabrication business that employs 23 workers. As the owner of a small business, one of the major advantages that Rudy will enjoy when competing against larger firms will be a lesser burden of complying with government regulations.

Which of the following is an intimidating difficulty that small businesses face?

Ethan is in the process of launching his new business venture that specializes in electronic waste recycling. During this period, he is in constant touch with Lloyd, who has seen success in this niche market. Which of the following entrepreneurial development strategies is Ethan utilizing?

Damien is a programmer in a software firm. He has recently received a promotion and an annual bonus. He believes that this is a result of random luck as he does not work very hard.Damien has _____.

Overhead costs for small businesses:

Identify the core questions a business plan should address.

In the context of the U.S. economy, small businesses:

Business Now: Change Is the Only Constant

Economics: The Framework for Business

The World Marketplace: Business Without Borders

Business Ethics and Social Responsibility: Doing Well by Doing Good

Business Communication: Creating and Delivering Messages that Matter

Business Formation: Choosing the Form that Fits

Accounting: Decision Making by the Numbers

Finance: Acquiring and Using Funds to Maximize Value

Financial Markets: Allocating Financial Resources

Marketing: Building Profitable Customer Connections

Product and Promotion: Creating and Communicating Value

Distribution and Pricing: Right Product, Right Person, Right Place, Right Price

Management, Motivation and Leadership: Bringing Business to Life

Human Resources Management: Building a Top Quality Workforce

Managing Information and Technology: Finding New Ways to Learn and Link

Operations Management: Putting It All Together

Filters