Question 1

Entrepreneurs applying for a bank loan should realize that bankers will

Accepted Answer

A)  expect to receive a share of ownership in the business in exchange for their loan. 
B)  expect the entrepreneur to provide a business plan. 
C)  generally make loans only to small businesses in dot-com related industries. 
D)  offer only short-term financing. 
A)  expect to receive a share of ownership in the business in exchange for their loan. 
B)  expect the entrepreneur to provide a business plan. 
C)  generally make loans only to small businesses in dot-com related industries. 
D)  offer only short-term financing.

Question 2

The most important difference between entrepreneurs and micropreneurs is the focus placed by micropreneurs on balancing the demands of work and family.

Accepted Answer

A) True 
 B)False

Question 3

One reason we have seen continued growth in home-based businesses is

Accepted Answer

A)  the location offers a more secure operational environment. 
B)  affordable technology makes it easier to compete. 
C)  people need something to do while they wait to return to work for a large corporation. 
D)  it is less risky to start a home-based business than other types of entrepreneurial ventures. 
A)  the location offers a more secure operational environment. 
B)  affordable technology makes it easier to compete. 
C)  people need something to do while they wait to return to work for a large corporation. 
D)  it is less risky to start a home-based business than other types of entrepreneurial ventures.

Question 4

The two primary concerns of an entrepreneur starting a new business are planning and record keeping.

Accepted Answer

A) True 
 B)False

Question 5

Successful entrepreneurs are exclusively motivated by the desire to become rich.

Accepted Answer

A) True 
 B)False

Question 6

Big businesses do not serve all the needs of a market.

Accepted Answer

A) True 
 B)False

Question 7

Business incubators provide assistance to established companies attempting to generate foreign sales.

Accepted Answer

A) True 
 B)False

Question 8

One of the challenges of running a home-based business is

Accepted Answer

A)  an increase in business risk. 
B)  managing the extra time on your hands. 
C)  keeping work and family tasks separate. 
D)  burdensome tax laws. 
A)  an increase in business risk. 
B)  managing the extra time on your hands. 
C)  keeping work and family tasks separate. 
D)  burdensome tax laws.

Question 9

The U.S. government's Immigration Act of 1990

Accepted Answer

A)  encouraged entrepreneurs to come to the U.S. through "investor visas." 
B)  established a government program to teach American workers displaced by immigration how to start their own businesses. 
C)  established guidelines to help entrepreneurs recruit legal aliens as a source of low-cost labor. 
D)  proposed an exchange program for American and European entrepreneurs to temporarily live internationally in order to open up foreign branches for their businesses. 
A)  encouraged entrepreneurs to come to the U.S. through "investor visas." 
B)  established a government program to teach American workers displaced by immigration how to start their own businesses. 
C)  established guidelines to help entrepreneurs recruit legal aliens as a source of low-cost labor. 
D)  proposed an exchange program for American and European entrepreneurs to temporarily live internationally in order to open up foreign branches for their businesses.

Question 10

Effective entrepreneurial teams combine

Accepted Answer

A)  creativity with marketing and production experience. 
B)  venture financing, tax benefits, and production economies. 
C)  scientific abilities, capital investment, and marketing skills. 
D)  risk tolerance, debt financing, and international experience. 
A)  creativity with marketing and production experience. 
B)  venture financing, tax benefits, and production economies. 
C)  scientific abilities, capital investment, and marketing skills. 
D)  risk tolerance, debt financing, and international experience.

Question 11

Many micropreneurs are home-based business owners.

Accepted Answer

A) True 
 B)False

Question 12

According to the Small Business Administration's definition, small businesses are independently owned and operated.

Accepted Answer

A) True 
 B)False

Question 13

Caleb inherited a successful dry cleaning business from his parents. Just as his parents did, he offered high-quality service to all the customers he served. As the surrounding towns grew, several customers recommended that Caleb expand the business to offer service in new locations. He chose to maintain only one operation, so as not to lose control and to keep his work life and home life balanced. Caleb is a good example of a(n) ________.

Accepted Answer

A)  small business affiliate 
B)  intrapreneur 
C)  micropreneur 
D)  enterprise zone participant 
A)  small business affiliate 
B)  intrapreneur 
C)  micropreneur 
D)  enterprise zone participant

Question 14

Which of the following government agencies is responsible for encouraging the development of small business?

Accepted Answer

A)  Small Business Administration 
B)  Federal Trade Commission 
C)  Entrepreneur Assistance Center 
D)  Federal Microloan Authority 
A)  Small Business Administration 
B)  Federal Trade Commission 
C)  Entrepreneur Assistance Center 
D)  Federal Microloan Authority

Question 15

An intrapreneur is the creative person who starts and manages a nonprofit organization.

Accepted Answer

A) True 
 B)False

Question 16

Using the analogy of boulders vs. sand for filling a hole, the textbook points out that

Accepted Answer

A)  small businesses are employing a record number of employees because they have to work twice as hard at producing the same amount of output as a large competitor. 
B)  small businesses can serve niche markets that larger firms do not serve well. 
C)  the sand represents the small businesses that start and fail each year, while the boulders represent the large companies whose resources permit them to stay the course. 
D)  large companies serve market niches so much better than small companies. 
A)  small businesses are employing a record number of employees because they have to work twice as hard at producing the same amount of output as a large competitor. 
B)  small businesses can serve niche markets that larger firms do not serve well. 
C)  the sand represents the small businesses that start and fail each year, while the boulders represent the large companies whose resources permit them to stay the course. 
D)  large companies serve market niches so much better than small companies.

Question 17

Which of the following sources of investment is the LEAST likely type available to entrepreneurs?

Accepted Answer

A)  Angel investors 
B)  Small Business Administration loans 
C)  Venture capitalists 
D)  Family and friends 
A)  Angel investors 
B)  Small Business Administration loans 
C)  Venture capitalists 
D)  Family and friends

Question 18

If you have managerial skills and leadership ability, you also possess the personality to be an entrepreneur.

Accepted Answer

A) True 
 B)False

Question 19

Eddie is an inventive engineering new graduate who just started working for a large company that makes medical products for both hospital and patient use. One of his primary responsibilities is to initiate and develop new products to complement the firm's current product line. Eddie's position is ________.

Accepted Answer

A)  intrapreneurial 
B)  entrepreneurial 
C)  an outside consultant for other firms 
D)  micropreneurial 
A)  intrapreneurial 
B)  entrepreneurial 
C)  an outside consultant for other firms 
D)  micropreneurial

Question 20

In order to secure financing for Bitty Bytes, a mobile bakery business that services several large Silicon Valley firms, Betty demonstrated her unwavering aspiration to get her business started by visiting several bankers with ________.

Accepted Answer

A)  her insurance agent. 
B)  her business plan. 
C)  her venture capitalist. 
D)  her idea. 
A)  her insurance agent. 
B)  her business plan. 
C)  her venture capitalist. 
D)  her idea.

Exam 6: Entrepreneurship and Starting a Small Business

Entrepreneurs applying for a bank loan should realize that bankers will

The most important difference between entrepreneurs and micropreneurs is the focus placed by micropreneurs on balancing the demands of work and family.

One reason we have seen continued growth in home-based businesses is

The two primary concerns of an entrepreneur starting a new business are planning and record keeping.

Successful entrepreneurs are exclusively motivated by the desire to become rich.

Big businesses do not serve all the needs of a market.

Business incubators provide assistance to established companies attempting to generate foreign sales.

One of the challenges of running a home-based business is

The U.S. government's Immigration Act of 1990

Effective entrepreneurial teams combine

Many micropreneurs are home-based business owners.

According to the Small Business Administration's definition, small businesses are independently owned and operated.

Which of the following government agencies is responsible for encouraging the development of small business?

An intrapreneur is the creative person who starts and manages a nonprofit organization.

Using the analogy of boulders vs. sand for filling a hole, the textbook points out that

Which of the following sources of investment is the LEAST likely type available to entrepreneurs?

If you have managerial skills and leadership ability, you also possess the personality to be an entrepreneur.

In order to secure financing for Bitty Bytes, a mobile bakery business that services several large Silicon Valley firms, Betty demonstrated her unwavering aspiration to get her business started by visiting several bankers with ________.

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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