Question 1

In order to qualify for a microloan from the SBA, an entrepreneur must have adequate collateral and a proven track record of success.

Accepted Answer

A) True 
 B)False

Question 2

Successful entrepreneurs are self-nurturing. This means they

Accepted Answer

A)  look to others for strength and encouragement. 
B)  self-finance their business with no assistance from others. 
C)  perform all business operations by themselves. 
D)  believe in themselves and their ideas. 
A)  look to others for strength and encouragement. 
B)  self-finance their business with no assistance from others. 
C)  perform all business operations by themselves. 
D)  believe in themselves and their ideas.

Question 3

To be classified as a small business, a firm must have no more than 100 employees.

Accepted Answer

A) True 
 B)False

Question 4

Increased participation in small business exporting owes credit to ________.

Accepted Answer

A)  political constituents who have made inroads abroad. 
B)  large events such as the Olympics that have brought attention to the potential in world markets. 
C)  technological advances such as the Internet and PayPal for safely fulfilling orders. 
D)  partnerships that small businesses have formed with large businesses. 
A)  political constituents who have made inroads abroad. 
B)  large events such as the Olympics that have brought attention to the potential in world markets. 
C)  technological advances such as the Internet and PayPal for safely fulfilling orders. 
D)  partnerships that small businesses have formed with large businesses.

Question 5

Historically entrepreneurs in the U.S.

Accepted Answer

A)  created wealth for themselves, but have had a minor impact on the economy as a whole. 
B)  started many small firms that later became major corporations employing thousands of workers. 
C)  experienced success only when they worked in partnership with the federal government. 
D)  played an important role, but are less important now in creating jobs and wealth. 
A)  created wealth for themselves, but have had a minor impact on the economy as a whole. 
B)  started many small firms that later became major corporations employing thousands of workers. 
C)  experienced success only when they worked in partnership with the federal government. 
D)  played an important role, but are less important now in creating jobs and wealth.

Question 6

Timothy, Jude, and Eric are working in the marketing department of a multinational corporation. They each have similar backgrounds and experience and are thinking about leaving their current company to start their own business. Successful entrepreneurial teams are comprised of these types of people because similarities in knowledge and skill ensure harmony and consistency in their new business.

Accepted Answer

A) True 
 B)False

Question 7

When writing a business plan, prospective entrepreneurs should remember to omit details regarding their experience and education since investors are only interested in the proposed business.

Accepted Answer

A) True 
 B)False

Question 8

For prospective entrepreneurs, enrolling in an introduction to business or small business management course offered through their community college

Accepted Answer

A)  is likely to be wasted time since college courses tend to be too theoretical. 
B)  can be helpful by offering them an opportunity to meet experienced small business owners. 
C)  serves as supplementary information, only after starting their business venture. 
D)  seldom provides you with information to help make small business decisions. 
A)  is likely to be wasted time since college courses tend to be too theoretical. 
B)  can be helpful by offering them an opportunity to meet experienced small business owners. 
C)  serves as supplementary information, only after starting their business venture. 
D)  seldom provides you with information to help make small business decisions.

Question 9

For several years, Addison has volunteered to play the piano and sing at a local nursing home. Now, Addison has decided the time was right to get into the growing eldercare market. She created Music and Memories, a nonprofit corporation that would hire local talent to perform her own music productions directed toward this market. In order to write and produce several productions each year, Addison needed start-up funds. An instructor at the local community college suggested that she begin by ________, because this effort would help introduce her idea to interested investors as well as suggest government grant applications that Addison might pursue.

Accepted Answer

A)  preparing her business plan 
B)  finding talented performers 
C)  writing themed performances such as a Thanksgiving concert and a Valentine's Day concert 
D)  developing a list of start-up costs 
A)  preparing her business plan 
B)  finding talented performers 
C)  writing themed performances such as a Thanksgiving concert and a Valentine's Day concert 
D)  developing a list of start-up costs

Question 10

Only about 10% of all businesses qualify as small businesses using the definition of the Small Business Administration.

Accepted Answer

A) True 
 B)False

Question 11

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 12

The goal of an intrapreneur is to

Accepted Answer

A)  improve quality control in a corporation's production process. 
B)  develop new products and generate new profits for the corporation. 
C)  implement cost control policies for existing products. 
D)  create smaller companies within larger companies. 
A)  improve quality control in a corporation's production process. 
B)  develop new products and generate new profits for the corporation. 
C)  implement cost control policies for existing products. 
D)  create smaller companies within larger companies.

Question 13

Because of the stress of being in business for yourself, it's important that entrepreneurs have people around them to help replenish their enthusiasm.

Accepted Answer

A) True 
 B)False

Question 14

Because of their greater financial resources and expert staffs, big corporations can almost always outperform small businesses.

Accepted Answer

A) True 
 B)False

Question 15

Elliot's long-time interest in and knowledge of computers enabled him to design a new hard drive that is better than anything else on the market. Elliot's product and business plan will likely attract several sources of financing if he is willing to give up part ownership in his company.

Accepted Answer

A) True 
 B)False

Question 16

The principles of management of a large business are similar to the principles of management of a small business.

Accepted Answer

A) True 
 B)False

Question 17

Due to the credit crunch that developed during the Great Recession, many small businesses found that ________ were more willing to lend money to smaller operations.

Accepted Answer

A)  large corporations 
B)  credit card companies 
C)  international banks 
D)  smaller, community banks 
A)  large corporations 
B)  credit card companies 
C)  international banks 
D)  smaller, community banks

Question 18

A review of small business successes and failures indicates that the

Accepted Answer

A)  businesses that are easiest to start offer the greatest potential for long-term growth and profits. 
B)  restaurant industry offers the least risk for entrepreneurs. 
C)  businesses with the potential for high profit levels tend to be difficult to start and hard to keep going. 
D)  reason the service sector is rapidly growing is that these firms are easy to start and keep going, and offer high levels of security and growth potential. 
A)  businesses that are easiest to start offer the greatest potential for long-term growth and profits. 
B)  restaurant industry offers the least risk for entrepreneurs. 
C)  businesses with the potential for high profit levels tend to be difficult to start and hard to keep going. 
D)  reason the service sector is rapidly growing is that these firms are easy to start and keep going, and offer high levels of security and growth potential.

Question 19

Small business employees

Accepted Answer

A)  usually dislike their jobs and look forward to finding employment with major corporations. 
B)  find their jobs less challenging than a similar job in a large corporation. 
C)  usually get paid higher wages than workers in large corporations. 
D)  often find more job satisfaction than their counterparts in big business. 
A)  usually dislike their jobs and look forward to finding employment with major corporations. 
B)  find their jobs less challenging than a similar job in a large corporation. 
C)  usually get paid higher wages than workers in large corporations. 
D)  often find more job satisfaction than their counterparts in big business.

Question 20

Successful micropreneurs require self-discipline to separate work from family responsibilities.

Accepted Answer

A) True 
 B)False

Exam 6: Entrepreneurship and Starting a Small Business

In order to qualify for a microloan from the SBA, an entrepreneur must have adequate collateral and a proven track record of success.

Successful entrepreneurs are self-nurturing. This means they

To be classified as a small business, a firm must have no more than 100 employees.

Increased participation in small business exporting owes credit to ________.

Historically entrepreneurs in the U.S.

When writing a business plan, prospective entrepreneurs should remember to omit details regarding their experience and education since investors are only interested in the proposed business.

For prospective entrepreneurs, enrolling in an introduction to business or small business management course offered through their community college

Only about 10% of all businesses qualify as small businesses using the definition of the Small Business Administration.

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

The goal of an intrapreneur is to

Because of the stress of being in business for yourself, it's important that entrepreneurs have people around them to help replenish their enthusiasm.

Because of their greater financial resources and expert staffs, big corporations can almost always outperform small businesses.

Elliot's long-time interest in and knowledge of computers enabled him to design a new hard drive that is better than anything else on the market. Elliot's product and business plan will likely attract several sources of financing if he is willing to give up part ownership in his company.

The principles of management of a large business are similar to the principles of management of a small business.

Due to the credit crunch that developed during the Great Recession, many small businesses found that ________ were more willing to lend money to smaller operations.

A review of small business successes and failures indicates that the

Small business employees

Successful micropreneurs require self-discipline to separate work from family responsibilities.

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

Filters