Question 1

Management includes attention toward financing the business, hiring employees, marketing, and record keeping.

Accepted Answer

A) True 
 B)False

Question 2

Most entrepreneurs are more interested in personal achievement than in power.

Accepted Answer

A) True 
 B)False

Question 3

As a former classmate of Pepe's at the nearby university, you remind him what you both learned in your small business management class several years ago. What would you remind him?

Accepted Answer

A)  Restaurants are easy to start up, but difficult to keep going. 
B)  Restaurants are probably the most difficult type of business to start up, due to the labor-intensive aspects of the business. 
C)  Experts believe that restaurants have a high profit potential, due the fact that there is not much direct competition. 
D)  Restaurants are easy to start up and have great profit potential. 
A)  Restaurants are easy to start up, but difficult to keep going. 
B)  Restaurants are probably the most difficult type of business to start up, due to the labor-intensive aspects of the business. 
C)  Experts believe that restaurants have a high profit potential, due the fact that there is not much direct competition. 
D)  Restaurants are easy to start up and have great profit potential.

Question 4

Tessa has just graduated with a business degree. Her job hunt should only focus on large corporations.

Accepted Answer

A) True 
 B)False

Question 5

Small businesses can provide more personalized service than a large corporation to overseas customers.

Accepted Answer

A) True 
 B)False

Question 6

Angel investors are the government agencies that invest money in new companies before they go public.

Accepted Answer

A) True 
 B)False

Question 7

The easiest businesses to start are those that offer the greatest profit potential.

Accepted Answer

A) True 
 B)False

Question 8

Most business opportunities offer entrepreneurs high levels of security and profits.

Accepted Answer

A) True 
 B)False

Question 9

A(n) ________ is a group of experienced professionals from different areas of business who join together to develop, make, and market a new product.

Accepted Answer

A)  entrepreneurial team 
B)  joint venture 
C)  self-directed functional team 
D)  managerial task force 
A)  entrepreneurial team 
B)  joint venture 
C)  self-directed functional team 
D)  managerial task force

Question 10

State and local governments often act as venture capitalists.

Accepted Answer

A) True 
 B)False

Question 11

Dr. Pearl White just graduated from dental school. She is hoping to acquire the necessary funding to start her own dental practice. One advantage of this type of business is

Accepted Answer

A)  above-average opportunity to borrow funds at a high interest rate. 
B)  nearly unlimited growth potential. 
C)  the service is individualized and not easily mass-produced. 
D)  very low start-up costs. 
A)  above-average opportunity to borrow funds at a high interest rate. 
B)  nearly unlimited growth potential. 
C)  the service is individualized and not easily mass-produced. 
D)  very low start-up costs.

Question 12

The most common small business failures occur in businesses that are the easiest to start.

Accepted Answer

A) True 
 B)False

Question 13

Enterprise zones offer lower tax rates and government assistance to attract private business investment.

Accepted Answer

A) True 
 B)False

Question 14

Compared to small businesses, large firms have a greater ability to provide personalized customer service.

Accepted Answer

A) True 
 B)False

Question 15

Your brother is a dentist and has opened a new practice in your hometown. As a business student you know that this type of business experiences low failure rates.

Accepted Answer

A) True 
 B)False

Question 16

Questions about how much authority to delegate and to whom, are easier issues for family-run businesses since they can't fire family.

Accepted Answer

A) True 
 B)False

Question 17

Entrepreneurs are motivated by the desire to earn a profit.

Accepted Answer

A) True 
 B)False

Question 18

Exporting offers small businesses opportunities to reduce their dependence on domestic sales and extend product lives.

Accepted Answer

A) True 
 B)False

Question 19

The Small Business Administration sponsors volunteers from industry, trade associations, and education who offer advice to small business owners. These volunteers are called:

Accepted Answer

A)  the Small Business Council of Volunteers (SBCV). 
B)  Partners in Service and Economic Progress (PSEP). 
C)  Small Business Counselors Incorporated (SBCI). 
D)  the Service Corps of Retired Executives (SCOR
E) . 
A)  the Small Business Council of Volunteers (SBCV). 
B)  Partners in Service and Economic Progress (PSEP). 
C)  Small Business Counselors Incorporated (SBCI). 
D)  the Service Corps of Retired Executives (SCOR
E) .

Question 20

According to the Small Business Administration, poor management is the cause of the majority of small business failures.

Accepted Answer

A) True 
 B)False

Exam 6: Entrepreneurship and Starting a Small Business

Management includes attention toward financing the business, hiring employees, marketing, and record keeping.

Most entrepreneurs are more interested in personal achievement than in power.

As a former classmate of Pepe's at the nearby university, you remind him what you both learned in your small business management class several years ago. What would you remind him?

Tessa has just graduated with a business degree. Her job hunt should only focus on large corporations.

Small businesses can provide more personalized service than a large corporation to overseas customers.

Angel investors are the government agencies that invest money in new companies before they go public.

The easiest businesses to start are those that offer the greatest profit potential.

Most business opportunities offer entrepreneurs high levels of security and profits.

A(n) ________ is a group of experienced professionals from different areas of business who join together to develop, make, and market a new product.

State and local governments often act as venture capitalists.

Dr. Pearl White just graduated from dental school. She is hoping to acquire the necessary funding to start her own dental practice. One advantage of this type of business is

The most common small business failures occur in businesses that are the easiest to start.

Enterprise zones offer lower tax rates and government assistance to attract private business investment.

Compared to small businesses, large firms have a greater ability to provide personalized customer service.

Your brother is a dentist and has opened a new practice in your hometown. As a business student you know that this type of business experiences low failure rates.

Questions about how much authority to delegate and to whom, are easier issues for family-run businesses since they can't fire family.

Entrepreneurs are motivated by the desire to earn a profit.

Exporting offers small businesses opportunities to reduce their dependence on domestic sales and extend product lives.

The Small Business Administration sponsors volunteers from industry, trade associations, and education who offer advice to small business owners. These volunteers are called:

According to the Small Business Administration, poor management is the cause of the majority of small business failures.

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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