Question 1

If you are trying to prevent failure, it is a good idea to go into the business with good record-keeping techniques.

Accepted Answer

A) True 
 B)False

Question 2

After personal savings, the next largest source of capital for entrepreneurs is from

Accepted Answer

A)  large multinational banks. 
B)  the Small Business Administration. 
C)  state and local governments. 
D)  friends and family. 
A)  large multinational banks. 
B)  the Small Business Administration. 
C)  state and local governments. 
D)  friends and family.

Question 3

As an employee of a small business, Dante has heard the owner is getting ready to retire. Since Dante would like to buy the business, he needs to determine how much the business is worth. In order to determine a fair price for the business, Dante should add up the market value of all of the firm's physical assets such as buildings, machinery, equipment, and inventory, and willingly pay this amount for the business.

Accepted Answer

A) True 
 B)False

Question 4

As the owner of a small manufacturing business, Finn has an interest in exporting. However, he doesn't know how to get started. Fortunately, the government provides an abundance of information to encourage entrepreneurs like Finn.

Accepted Answer

A) True 
 B)False

Question 5

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.

Question 6

Hoping to qualify for a Small Business Administration microloan, Aliana's business plan clearly pinpoints her strategy to gainfully serve her target market. Unfortunately, her lack of business experience and limited collateral greatly reduce her chances of obtaining the microloan.

Accepted Answer

A) True 
 B)False

Question 7

Business incubators are usually government-funded facilities intended to

Accepted Answer

A)  provide health care benefits for small business owners and their families. 
B)  offer start-up firms low-cost office space and basic business services. 
C)  help rebuild the nation's infrastructure. 
D)  assist foreign investors in identifying business opportunities in the U.S. 
A)  provide health care benefits for small business owners and their families. 
B)  offer start-up firms low-cost office space and basic business services. 
C)  help rebuild the nation's infrastructure. 
D)  assist foreign investors in identifying business opportunities in the U.S.

Question 8

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 9

The United States government views entrepreneurship as a result of an individual's self-motivation. The government can do very little to encourage an individual to become an entrepreneur.

Accepted Answer

A) True 
 B)False

Question 10

Although corporate managers often exhibit the skills required of successful entrepreneurs, they seldom have the desire to give up the perks and fringe benefits of corporate life and start their own business.

Accepted Answer

A) True 
 B)False

Question 11

Entrepreneurs learn that there are many legal and financial issues involved in starting their business. The best way for the small business owner to resolve these issues and protect the firm's resources is

Accepted Answer

A)  for the owner(s) to trust his/her common sense. 
B)  hire a full-time lawyer and accountant who work exclusively for the small business. 
C)  defer making decisions regarding these issues until the company is bigger. 
D)  seek and pay for expert guidance and assistance. 
A)  for the owner(s) to trust his/her common sense. 
B)  hire a full-time lawyer and accountant who work exclusively for the small business. 
C)  defer making decisions regarding these issues until the company is bigger. 
D)  seek and pay for expert guidance and assistance.

Question 12

Which of the following statements accurately depicts an advantage that small business has over big business?

Accepted Answer

A)  If the small business owner can project his business as being big, if not very similar to big businesses that sell in the same industry, then he will realize a significant advantage. 
B)  The size of the business (small being better in this case) is an important consideration in the management of legal, payroll, and tax concerns. 
C)  A small business can maneuver and change quicker than most large businesses can. It can react to market conditions and customer concerns much faster. 
D)  The slower pace of small businesses translates into better quality for its customers. 
A)  If the small business owner can project his business as being big, if not very similar to big businesses that sell in the same industry, then he will realize a significant advantage. 
B)  The size of the business (small being better in this case) is an important consideration in the management of legal, payroll, and tax concerns. 
C)  A small business can maneuver and change quicker than most large businesses can. It can react to market conditions and customer concerns much faster. 
D)  The slower pace of small businesses translates into better quality for its customers.

Question 13

Large organizations encourage intrapreneurship as a strategy to improve their profitability through new products.

Accepted Answer

A) True 
 B)False

Question 14

With fewer employees and less revenue, small businesses have less need for detailed records than do larger business organizations.

Accepted Answer

A) True 
 B)False

Question 15

Many micropreneurs operate home-based businesses in the service industry.

Accepted Answer

A) True 
 B)False

Question 16

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 17

The primary concern of micropreneurs is to balance the risk of starting your own business with the desire to build a powerful organization earning significant profits.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following best describes the outlook for small businesses in international markets?

Accepted Answer

A)  The world is a larger, and potentially a more lucrative market than the U.S. domestic market. 
B)  The threat of terrorist activities prevents small businesses from competing internationally. 
C)  Most foreign buyers prefer to deal with large, well-known corporations rather than small businesses. 
D)  Higher business costs eliminate the profit opportunities in global markets. 
A)  The world is a larger, and potentially a more lucrative market than the U.S. domestic market. 
B)  The threat of terrorist activities prevents small businesses from competing internationally. 
C)  Most foreign buyers prefer to deal with large, well-known corporations rather than small businesses. 
D)  Higher business costs eliminate the profit opportunities in global markets.

Question 19

A National Business Incubator Association study indicates that over 85 percent of incubator graduates remain in business.

Accepted Answer

A) True 
 B)False

Question 20

Amir hopes to start his own business someday. He should not talk to other small business owners about his plans because they might steal his ideas.

Accepted Answer

A) True 
 B)False

Exam 6: Entrepreneurship and Starting a Small Business

If you are trying to prevent failure, it is a good idea to go into the business with good record-keeping techniques.

After personal savings, the next largest source of capital for entrepreneurs is from

As the owner of a small manufacturing business, Finn has an interest in exporting. However, he doesn't know how to get started. Fortunately, the government provides an abundance of information to encourage entrepreneurs like Finn.

Entrepreneurship is

Hoping to qualify for a Small Business Administration microloan, Aliana's business plan clearly pinpoints her strategy to gainfully serve her target market. Unfortunately, her lack of business experience and limited collateral greatly reduce her chances of obtaining the microloan.

Business incubators are usually government-funded facilities intended to

Conversations with people who start their own business often reveal that

The United States government views entrepreneurship as a result of an individual's self-motivation. The government can do very little to encourage an individual to become an entrepreneur.

Although corporate managers often exhibit the skills required of successful entrepreneurs, they seldom have the desire to give up the perks and fringe benefits of corporate life and start their own business.

Entrepreneurs learn that there are many legal and financial issues involved in starting their business. The best way for the small business owner to resolve these issues and protect the firm's resources is

Which of the following statements accurately depicts an advantage that small business has over big business?

Large organizations encourage intrapreneurship as a strategy to improve their profitability through new products.

With fewer employees and less revenue, small businesses have less need for detailed records than do larger business organizations.

Many micropreneurs operate home-based businesses in the service industry.

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

The primary concern of micropreneurs is to balance the risk of starting your own business with the desire to build a powerful organization earning significant profits.

Which of the following best describes the outlook for small businesses in international markets?

A National Business Incubator Association study indicates that over 85 percent of incubator graduates remain in business.

Amir hopes to start his own business someday. He should not talk to other small business owners about his plans because they might steal his ideas.

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

Appendix: Working Within the Legal Environment

Appendix: Using Technology to Manage Information

Appendix: Managing Risk

Appendix: Managing Personal Finances

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