Question 1

Similar to how large businesses proceed, small businesses make marketing decisions ________.

Accepted Answer

A)  after the product or service is developed. 
B)  before the business is funded. 
C)  at the same time that they hire employees, research for an accountant, and prepare the business plan. 
D)  before a product is developed or store is opened. 
A)  after the product or service is developed. 
B)  before the business is funded. 
C)  at the same time that they hire employees, research for an accountant, and prepare the business plan. 
D)  before a product is developed or store is opened.

Question 2

State and city governments have promoted facilities where new businesses can open up shop and share common services such as secretarial, accounting, and legal services. Due to their remarkable success rate, ________ continue to grow in popularity.

Accepted Answer

A)  enterprise zones 
B)  incubators 
C)  intrapreneurial development centers 
D)  venture farms 
A)  enterprise zones 
B)  incubators 
C)  intrapreneurial development centers 
D)  venture farms

Question 3

Many entrepreneurs got the idea for their own business from their experience of working for others.

Accepted Answer

A) True 
 B)False

Question 4

Aside from personal savings, the only other viable source of financing for an entrepreneur would be funds available from friends and family.

Accepted Answer

A) True 
 B)False

Question 5

Elise recently quit her job at a well-known insurance company and started a home-based business preparing medical transcriptions for doctors. Based on recent statistics, she can expect

Accepted Answer

A)  a negative reaction from friends and family who wonder when she will get a real job. 
B)  the emergence of affordable technology will make it less challenging for her to compete with larger firms offering the same service. 
C)  the government will discourage her attempts to create a home-based business in the hopes that she will opt for locating in an enterprise zone. 
D)  to find security, routine, and a paycheck from her new enterprise. 
A)  a negative reaction from friends and family who wonder when she will get a real job. 
B)  the emergence of affordable technology will make it less challenging for her to compete with larger firms offering the same service. 
C)  the government will discourage her attempts to create a home-based business in the hopes that she will opt for locating in an enterprise zone. 
D)  to find security, routine, and a paycheck from her new enterprise.

Question 6

Riley worked as a floral designer at a floral shop in town before opening her own shop. This approach to the business is okay, but her time would be put to better use starting her own business.

Accepted Answer

A) True 
 B)False

Question 7

Entrepreneurial spirit is unique to a small business environment.

Accepted Answer

A) True 
 B)False

Question 8

According to SBA guidelines, a manufacturing firm with 1,000 employees

Accepted Answer

A)  would be classified as a large firm in the industrial sector. 
B)  may be classified as a small business depending upon the size of others in the same industry. 
C)  is too small to achieve the efficiencies of large-scale production. 
D)  is classified as an S corporation. 
A)  would be classified as a large firm in the industrial sector. 
B)  may be classified as a small business depending upon the size of others in the same industry. 
C)  is too small to achieve the efficiencies of large-scale production. 
D)  is classified as an S corporation.

Question 9

As a future entrepreneur, Brooke considered a variety of financing sources. Her discussions with a venture capitalist revealed that this type of investor expects to receive a large ownership interest in her firm.

Accepted Answer

A) True 
 B)False

Question 10

Small businesses often have advantages in international markets. Which best describes one those advantages?

Accepted Answer

A)  They have greater expertise in managing the paperwork required to sell goods in international markets. 
B)  They have a better understanding of the cultural differences involved. 
C)  They can provide individualized customer service as opposed to impersonal corporate bureaucracies. 
D)  They have the ability to obtain financing through the International Monetary Fund. 
A)  They have greater expertise in managing the paperwork required to sell goods in international markets. 
B)  They have a better understanding of the cultural differences involved. 
C)  They can provide individualized customer service as opposed to impersonal corporate bureaucracies. 
D)  They have the ability to obtain financing through the International Monetary Fund.

Question 11

Entrepreneurial teams increase the cooperation between marketing, production, and other functional areas of a business venture.

Accepted Answer

A) True 
 B)False

Question 12

While the first job for many people is working for a small business, larger corporations create most of the permanent new jobs.

Accepted Answer

A) True 
 B)False

Question 13

Some people argue that small business failures are

Accepted Answer

A)  lower than traditionally reported. 
B)  understated to keep small business creation enthusiasm. 
C)  accurate and alarming. 
D)  inconclusive. 
A)  lower than traditionally reported. 
B)  understated to keep small business creation enthusiasm. 
C)  accurate and alarming. 
D)  inconclusive.

Question 14

The SBA may guarantee loans made by a financial institution and repay them if the borrowers stop making payments.

Accepted Answer

A) True 
 B)False

Question 15

Small businesses

Accepted Answer

A)  deal with similar management issues that large companies face. 
B)  deal with very different management issues due to the very different management challenges experienced by small businesses. 
C)  do not seek government funding due to the fact that the federal government has made it very clear that it must support large operations before small operations. 
D)  concern themselves with state-of-the-art information and accounting technology but not employee relations due to their challenge to financially support employee benefits programs. 
A)  deal with similar management issues that large companies face. 
B)  deal with very different management issues due to the very different management challenges experienced by small businesses. 
C)  do not seek government funding due to the fact that the federal government has made it very clear that it must support large operations before small operations. 
D)  concern themselves with state-of-the-art information and accounting technology but not employee relations due to their challenge to financially support employee benefits programs.

Question 16

Which of the following suggestions would an experienced business owner offer to help someone who is thinking about starting a business venture?

Accepted Answer

A)  Avoid the temptation of buying an existing firm. Build your own reputation and make your own mistakes. 
B)  Gain experience by working for a successful businessperson. 
C)  Postpone consulting with an accountant or lawyer until you can afford their services. 
D)  Jump in quickly, before the market conditions change and opportunities are lost. 
A)  Avoid the temptation of buying an existing firm. Build your own reputation and make your own mistakes. 
B)  Gain experience by working for a successful businessperson. 
C)  Postpone consulting with an accountant or lawyer until you can afford their services. 
D)  Jump in quickly, before the market conditions change and opportunities are lost.

Question 17

Which of the following statements is characteristic of entrepreneurs?

Accepted Answer

A)  They like certainty. 
B)  They have the ability to visualize a clear path. 
C)  They look at problems and see opportunities. 
D)  They prefer to be inventive rather than worry about whether the invention solves a customer need. 
A)  They like certainty. 
B)  They have the ability to visualize a clear path. 
C)  They look at problems and see opportunities. 
D)  They prefer to be inventive rather than worry about whether the invention solves a customer need.

Question 18

Entrepreneurs are less important now than in the past to the U.S. economy.

Accepted Answer

A) True 
 B)False

Question 19

Manuel is focusing his attention on finding full-time employment now that he has graduated. He has decided to narrow his job search to jobs with a major corporation and ignore the possibility of working for a small business. His job search strategy

Accepted Answer

A)  makes sense because managerial skills are best developed by working for big firms. 
B)  is smart because major corporations represent the most important source of employment growth in the United States. 
C)  indicates that Manuel's passion is to fulfill his dream of owning his own business. 
D)  will likely limit his job prospects since most new jobs are with small businesses. 
A)  makes sense because managerial skills are best developed by working for big firms. 
B)  is smart because major corporations represent the most important source of employment growth in the United States. 
C)  indicates that Manuel's passion is to fulfill his dream of owning his own business. 
D)  will likely limit his job prospects since most new jobs are with small businesses.

Question 20

Bankers and investors require entrepreneurs to present a well-conceived business plan.

Accepted Answer

A) True 
 B)False

Exam 6: Entrepreneurship and Starting a Small Business

Similar to how large businesses proceed, small businesses make marketing decisions ________.

State and city governments have promoted facilities where new businesses can open up shop and share common services such as secretarial, accounting, and legal services. Due to their remarkable success rate, ________ continue to grow in popularity.

Many entrepreneurs got the idea for their own business from their experience of working for others.

Aside from personal savings, the only other viable source of financing for an entrepreneur would be funds available from friends and family.

Elise recently quit her job at a well-known insurance company and started a home-based business preparing medical transcriptions for doctors. Based on recent statistics, she can expect

Riley worked as a floral designer at a floral shop in town before opening her own shop. This approach to the business is okay, but her time would be put to better use starting her own business.

Entrepreneurial spirit is unique to a small business environment.

According to SBA guidelines, a manufacturing firm with 1,000 employees

As a future entrepreneur, Brooke considered a variety of financing sources. Her discussions with a venture capitalist revealed that this type of investor expects to receive a large ownership interest in her firm.

Small businesses often have advantages in international markets. Which best describes one those advantages?

Entrepreneurial teams increase the cooperation between marketing, production, and other functional areas of a business venture.

While the first job for many people is working for a small business, larger corporations create most of the permanent new jobs.

Some people argue that small business failures are

The SBA may guarantee loans made by a financial institution and repay them if the borrowers stop making payments.

Small businesses

Which of the following suggestions would an experienced business owner offer to help someone who is thinking about starting a business venture?

Which of the following statements is characteristic of entrepreneurs?

Entrepreneurs are less important now than in the past to the U.S. economy.

Manuel is focusing his attention on finding full-time employment now that he has graduated. He has decided to narrow his job search to jobs with a major corporation and ignore the possibility of working for a small business. His job search strategy

Bankers and investors require entrepreneurs to present a well-conceived business plan.

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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