Question 1

Most entrepreneurs prefer working for someone else.

Accepted Answer

A) True 
 B)False

Question 2

A small business management course at a community college may offer entrepreneurs an opportunity to

Accepted Answer

A)  meet with experienced entrepreneurs and learn from their advice. 
B)  try out ideas on a computer simulation before risking real time and money. 
C)  listen to a qualified instructor solve all of the problems of small business owners. 
D)  be part of a group that will include angel investors. 
A)  meet with experienced entrepreneurs and learn from their advice. 
B)  try out ideas on a computer simulation before risking real time and money. 
C)  listen to a qualified instructor solve all of the problems of small business owners. 
D)  be part of a group that will include angel investors.

Question 3

Small Business Investment Companies (SBICs) are privately owned companies licensed by the Small Business Administration to lend money to small businesses.

Accepted Answer

A) True 
 B)False

Question 4

Bankers and potential investors are likely to read ________ first.

Accepted Answer

A)  the executive summary 
B)  the marketing plan 
C)  the qualifications of the management team 
D)  the analysis of the competition 
A)  the executive summary 
B)  the marketing plan 
C)  the qualifications of the management team 
D)  the analysis of the competition

Question 5

As a result of recent downsizing at his firm, Dominic lost his job as an IT manager for a large telecommunications company. A true, self-confirmed computer nerd, Dominic knew that several of his past contacts often outsourced their computer problems. He decided it was a good time to test the waters and see if he could secure enough computer clients to be in business for himself. His success demonstrated that

Accepted Answer

A)  starting your own business can quickly provide security and profits. 
B)  people always tend to hire people they know from past associations. 
C)  the service sector is not an area of significant growth. 
D)  successful big businesses often create profitable opportunities for small businesses. 
A)  starting your own business can quickly provide security and profits. 
B)  people always tend to hire people they know from past associations. 
C)  the service sector is not an area of significant growth. 
D)  successful big businesses often create profitable opportunities for small businesses.

Question 6

You can negotiate a win-win situation by offering to manage an established small business. You win from the experience; the owner wins with free time.

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

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

Accepted Answer

A) True 
 B)False

Question 9

Many more new entrepreneurs are turning to crowdfunding sites, like Kickstarter, to raise funds for their endeavors.

Accepted Answer

A) True 
 B)False

Question 10

After retiring as a telecommunications executive, Bruce joined SCORE. As a SCORE counselor Bruce will

Accepted Answer

A)  provide venture capital funds for aspiring small businesspeople. 
B)  visit high schools to advise students who are thinking about starting their own business. 
C)  help in the research and development of new products for entrepreneurs to market. 
D)  provide consulting services to small businesses for free. 
A)  provide venture capital funds for aspiring small businesspeople. 
B)  visit high schools to advise students who are thinking about starting their own business. 
C)  help in the research and development of new products for entrepreneurs to market. 
D)  provide consulting services to small businesses for free.

Question 11

Compared to employees of large businesses, small business employees are less satisfied with their work because they see their jobs as less challenging.

Accepted Answer

A) True 
 B)False

Question 12

One advantage enjoyed by home-based businesses is the relative ease in attracting new customers.

Accepted Answer

A) True 
 B)False

Question 13

Kate, a manager at a small manufacturing firm, has offered to help manage a local branch of the YMCA. Unfortunately, Kate will find that the skills acquired managing a small business will not be useful in managing a nonprofit organization.

Accepted Answer

A) True 
 B)False

Question 14

Business plans are necessarily a bit vague since these are prepared prior to the beginning of business operations.

Accepted Answer

A) True 
 B)False

Question 15

Potential entrepreneurs would be well advised to surround themselves with people who are smarter than they are.

Accepted Answer

A) True 
 B)False

Question 16

The Small Business Administration's microloan program offers small businesses very small loans.

Accepted Answer

A) True 
 B)False

Question 17

The business plan will include ________.

Accepted Answer

A)  an analysis of the competition 
B)  names of banks the owner plans to visit 
C)  import/export information 
D)  names of employees 
A)  an analysis of the competition 
B)  names of banks the owner plans to visit 
C)  import/export information 
D)  names of employees

Question 18

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.

Question 19

As their firms grow and prosper, busy entrepreneurs take pleasure in delegating authority to others.

Accepted Answer

A) True 
 B)False

Question 20

One way to get into business is to buy an existing company. The value of the business used to determine a fair purchase price is based on

Accepted Answer

A)  the prospects for business competition. 
B)  the current owner's retirement plan. 
C)  the amount of government contracts the company has. 
D)  the value of what the business owns, what it earns, and what makes it unique. 
A)  the prospects for business competition. 
B)  the current owner's retirement plan. 
C)  the amount of government contracts the company has. 
D)  the value of what the business owns, what it earns, and what makes it unique.

Exam 6: Entrepreneurship and Starting a Small Business

Most entrepreneurs prefer working for someone else.

A small business management course at a community college may offer entrepreneurs an opportunity to

Small Business Investment Companies (SBICs) are privately owned companies licensed by the Small Business Administration to lend money to small businesses.

Bankers and potential investors are likely to read ________ first.

You can negotiate a win-win situation by offering to manage an established small business. You win from the experience; the owner wins with free time.

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

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

Many more new entrepreneurs are turning to crowdfunding sites, like Kickstarter, to raise funds for their endeavors.

After retiring as a telecommunications executive, Bruce joined SCORE. As a SCORE counselor Bruce will

Compared to employees of large businesses, small business employees are less satisfied with their work because they see their jobs as less challenging.

One advantage enjoyed by home-based businesses is the relative ease in attracting new customers.

Kate, a manager at a small manufacturing firm, has offered to help manage a local branch of the YMCA. Unfortunately, Kate will find that the skills acquired managing a small business will not be useful in managing a nonprofit organization.

Business plans are necessarily a bit vague since these are prepared prior to the beginning of business operations.

Potential entrepreneurs would be well advised to surround themselves with people who are smarter than they are.

The Small Business Administration's microloan program offers small businesses very small loans.

The business plan will include ________.

Skylar is an angel investor. This means that he

As their firms grow and prosper, busy entrepreneurs take pleasure in delegating authority to others.

One way to get into business is to buy an existing company. The value of the business used to determine a fair purchase price is based on

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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