Question 1

Venture capitalists prefer to invest in innovative companies that have just begun operating.

Accepted Answer

A) True 
 B)False

Question 2

Which statement BEST describes why a successful entrepreneur needs to be flexible?

Accepted Answer

A)  Starting a new business often leads to envy in the wider business community. 
B)  People with whom entrepreneurs work are often opinionated and rigid. 
C)  Entrepreneurial ventures involve risky situations and unexpected events. 
D)  Initial business revenues tend to be low and may remain low for several years. 
E)  Many new businesses suffer from a lack of organization. 
A)  Starting a new business often leads to envy in the wider business community. 
B)  People with whom entrepreneurs work are often opinionated and rigid. 
C)  Entrepreneurial ventures involve risky situations and unexpected events. 
D)  Initial business revenues tend to be low and may remain low for several years. 
E)  Many new businesses suffer from a lack of organization.

Question 3

Technology has had a significant impact on small businesses because ________.

Accepted Answer

A)  the PC and the Internet have made starting a new business much easier 
B)  the failure of so many Web-based businesses in the late 1990s made capital unavailable 
C)  the information technology market has become oversaturated and unfriendly 
D)  most small businesses cannot afford the high costs of new technologies to help run their businesses 
E)  it has made marketing for new businesses more expensive 
A)  the PC and the Internet have made starting a new business much easier 
B)  the failure of so many Web-based businesses in the late 1990s made capital unavailable 
C)  the information technology market has become oversaturated and unfriendly 
D)  most small businesses cannot afford the high costs of new technologies to help run their businesses 
E)  it has made marketing for new businesses more expensive

Question 4

Maria is the owner of Pet Heaven,a new pet day care,grooming and boarding business.Maria envisions her business expanding to five locations in her state within three years.To help her succeed,which of the following does Maria MOST need?

Accepted Answer

A)  familiarity with state licensing requirements 
B)  a formal business plan 
C)  more customers 
D)  a business partner 
E)  an MBA 
A)  familiarity with state licensing requirements 
B)  a formal business plan 
C)  more customers 
D)  a business partner 
E)  an MBA

Question 5

Studies show that participation in an incubation program increases the success rate of a start-up company by as much as ________ percent.

Accepted Answer

A)  50 
B)  60 
C)  70 
D)  80 
E)  90 
A)  50 
B)  60 
C)  70 
D)  80 
E)  90

Question 6

The Entrepreneurs Organization connects business owners with experts in their industries for individual mentoring.

Accepted Answer

A) True 
 B)False

Question 7

If you were a venture capitalist,which of the following start-up businesses would you be most likely to fund?

Accepted Answer

A)  a Domino's Pizza franchisee 
B)  a modern art gallery within a shopping center 
C)  a producer of unique iPhone applications 
D)  a private accountant's office 
E)  a high-end coffee bar 
A)  a Domino's Pizza franchisee 
B)  a modern art gallery within a shopping center 
C)  a producer of unique iPhone applications 
D)  a private accountant's office 
E)  a high-end coffee bar

Question 8

A(n)________ is someone who takes the risk of creating,organizing and operating a business,usually to satisfy an unmet need in the marketplace.

Accepted Answer

A)  business owner 
B)  entrepreneur 
C)  venture capitalist 
D)  innovator 
E)  opportunist 
A)  business owner 
B)  entrepreneur 
C)  venture capitalist 
D)  innovator 
E)  opportunist

Question 9

If you are planning to start a new business,how long should you realistically expect it to take for your business to earn a profit?

Accepted Answer

A)  six to twelve months 
B)  one to two years 
C)  three to five years 
D)  five to ten years 
E)  more than ten years 
A)  six to twelve months 
B)  one to two years 
C)  three to five years 
D)  five to ten years 
E)  more than ten years

Question 10

________ support start-up businesses by offering resources such as administrative and technical support and business networking.

Accepted Answer

A)  Advisory boards 
B)  Virtual assistants 
C)  Partners 
D)  Business incubators 
E)  Entrepreneurs 
A)  Advisory boards 
B)  Virtual assistants 
C)  Partners 
D)  Business incubators 
E)  Entrepreneurs

Question 11

Lifestyle entrepreneurs ________.

Accepted Answer

A)  create upscale products and services that appeal to affluent customers 
B)  want flexibility and freedom in the way they balance their personal and work lives 
C)  create programs that help people live in a more environmentally responsible manner 
D)  anticipate and take advantage of upcoming trends in fashion and home design 
E)  cater to customers with alternative tastes and preferences 
A)  create upscale products and services that appeal to affluent customers 
B)  want flexibility and freedom in the way they balance their personal and work lives 
C)  create programs that help people live in a more environmentally responsible manner 
D)  anticipate and take advantage of upcoming trends in fashion and home design 
E)  cater to customers with alternative tastes and preferences

Question 12

All of the following are potential benefits of using credit cards to obtain funds for starting a business EXCEPT ________.

Accepted Answer

A)  credit card funds are obtained quickly 
B)  credit cards have low interest rates on unpaid balances 
C)  credit cards may have a zero-percent interest rate 
D)  credit cards are convenient to use 
E)  credit card balances can be paid off monthly 
A)  credit card funds are obtained quickly 
B)  credit cards have low interest rates on unpaid balances 
C)  credit cards may have a zero-percent interest rate 
D)  credit cards are convenient to use 
E)  credit card balances can be paid off monthly

Question 13

What is the purpose of a business plan,and what are the major elements that should be included in an effective business plan?

Accepted Answer

A business plan is a formal document tha

Question 14

________ of all start-ups fail in the first year.

Accepted Answer

A)  Just over three-quarters 
B)  Approximately two-thirds 
C)  More than one-half 
D)  Almost a third 
E)  Nearly one-fourth 
A)  Just over three-quarters 
B)  Approximately two-thirds 
C)  More than one-half 
D)  Almost a third 
E)  Nearly one-fourth

Question 15

A(n)________ is defined as a business that is independently owned and operated and is not dominant in its field of operations.

Accepted Answer

A)  incubating business 
B)  small business 
C)  noncompetitive business 
D)  minority-owned business 
E)  entrepreneurship 
A)  incubating business 
B)  small business 
C)  noncompetitive business 
D)  minority-owned business 
E)  entrepreneurship

Question 16

Which of the following is NOT a disadvantage of franchising?

Accepted Answer

A)  lack of control 
B)  workload 
C)  competition 
D)  brand recognition 
E)  royalty fees 
A)  lack of control 
B)  workload 
C)  competition 
D)  brand recognition 
E)  royalty fees

Question 17

What is a franchise? What are the major advantages and disadvantages of owning a franchise business?

Accepted Answer

A franchise is a method of doing busines

Question 18

Since Ben opened his own computer repair business,he has had to take a lot of time off to care for his mother who has been seriously ill.In his old job,he would not have been allowed to take so much time off.What advantage of owning a small business is BEST displayed by Ben's situation?

Accepted Answer

A)  financial independence 
B)  opportunity 
C)  less bureaucracy 
D)  flexibility 
E)  innovation 
A)  financial independence 
B)  opportunity 
C)  less bureaucracy 
D)  flexibility 
E)  innovation

Question 19

Amy is the founder of a small IT firm that specializes in social networking applications.She meets weekly with the members of her development team to solicit their ideas,address any problems they are having,and provide motivation and encouragement.Amy is demonstrating which characteristic of a successful entrepreneur?

Accepted Answer

A)  risk-taking 
B)  leadership and communication skills 
C)  innovative 
D)  self-directed 
E)  motivated 
A)  risk-taking 
B)  leadership and communication skills 
C)  innovative 
D)  self-directed 
E)  motivated

Question 20

Which of the following is ALWAYS TRUE about the purchases of existing businesses?

Accepted Answer

A)  Once under new ownership, existing businesses outperform initial revenue projections. 
B)  Once under new ownership, any underlying problems are the responsibility of the new owner. 
C)  Once under new ownership, consumer curiosity about the new ownership will cause a spike in sales. 
D)  Once under new ownership, remaining staff are suspicious or fearful of the new owner. 
E)  Once under new ownership, existing customers will be resentful toward the new owner. 
A)  Once under new ownership, existing businesses outperform initial revenue projections. 
B)  Once under new ownership, any underlying problems are the responsibility of the new owner. 
C)  Once under new ownership, consumer curiosity about the new ownership will cause a spike in sales. 
D)  Once under new ownership, remaining staff are suspicious or fearful of the new owner. 
E)  Once under new ownership, existing customers will be resentful toward the new owner.

Venture capitalists prefer to invest in innovative companies that have just begun operating.

Which statement BEST describes why a successful entrepreneur needs to be flexible?

Technology has had a significant impact on small businesses because ________.

Maria is the owner of Pet Heaven,a new pet day care,grooming and boarding business.Maria envisions her business expanding to five locations in her state within three years.To help her succeed,which of the following does Maria MOST need?

Studies show that participation in an incubation program increases the success rate of a start-up company by as much as ________ percent.

The Entrepreneurs Organization connects business owners with experts in their industries for individual mentoring.

If you were a venture capitalist,which of the following start-up businesses would you be most likely to fund?

A(n)________ is someone who takes the risk of creating,organizing and operating a business,usually to satisfy an unmet need in the marketplace.

If you are planning to start a new business,how long should you realistically expect it to take for your business to earn a profit?

________ support start-up businesses by offering resources such as administrative and technical support and business networking.

Lifestyle entrepreneurs ________.

All of the following are potential benefits of using credit cards to obtain funds for starting a business EXCEPT ________.

What is the purpose of a business plan,and what are the major elements that should be included in an effective business plan?

________ of all start-ups fail in the first year.

A(n)________ is defined as a business that is independently owned and operated and is not dominant in its field of operations.

Which of the following is NOT a disadvantage of franchising?

What is a franchise? What are the major advantages and disadvantages of owning a franchise business?

Since Ben opened his own computer repair business,he has had to take a lot of time off to care for his mother who has been seriously ill.In his old job,he would not have been allowed to take so much time off.What advantage of owning a small business is BEST displayed by Ben's situation?

Which of the following is ALWAYS TRUE about the purchases of existing businesses?

Business Basics

Economics and Banking

Ethics in Business

Business in a Global Economy

Forms of Business Ownership

Business Management and Organization

Motivation, Leadership, and Teamwork

Human Resource Management

Online Business and Technology

Production, operations, and the Supply Chain

Marketing and Consumer Behavior

Product Development and Pricing Strategies

Promotion and Distribution

Financing and Tracking Business Operations

Investment Opportunities in the Securities Market

Business Law

Constructing an Effective Business Plan

Business Communications

Finding a Job

Personal Finance

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Exam 5: Small Business and the Entrepreneur

Venture capitalists prefer to invest in innovative companies that have just begun operating.

Which statement BEST describes why a successful entrepreneur needs to be flexible?

Technology has had a significant impact on small businesses because ________.

Maria is the owner of Pet Heaven,a new pet day care,grooming and boarding business.Maria envisions her business expanding to five locations in her state within three years.To help her succeed,which of the following does Maria MOST need?

Studies show that participation in an incubation program increases the success rate of a start-up company by as much as ________ percent.

The Entrepreneurs Organization connects business owners with experts in their industries for individual mentoring.

If you were a venture capitalist,which of the following start-up businesses would you be most likely to fund?

A(n)________ is someone who takes the risk of creating,organizing and operating a business,usually to satisfy an unmet need in the marketplace.

If you are planning to start a new business,how long should you realistically expect it to take for your business to earn a profit?

________ support start-up businesses by offering resources such as administrative and technical support and business networking.

Lifestyle entrepreneurs ________.

All of the following are potential benefits of using credit cards to obtain funds for starting a business EXCEPT ________.

What is the purpose of a business plan,and what are the major elements that should be included in an effective business plan?

________ of all start-ups fail in the first year.

A(n)________ is defined as a business that is independently owned and operated and is not dominant in its field of operations.

Which of the following is NOT a disadvantage of franchising?

What is a franchise? What are the major advantages and disadvantages of owning a franchise business?

Since Ben opened his own computer repair business,he has had to take a lot of time off to care for his mother who has been seriously ill.In his old job,he would not have been allowed to take so much time off.What advantage of owning a small business is BEST displayed by Ben's situation?

Which of the following is ALWAYS TRUE about the purchases of existing businesses?

Business Basics

Economics and Banking

Ethics in Business

Business in a Global Economy

Forms of Business Ownership

Business Management and Organization

Motivation, Leadership, and Teamwork

Human Resource Management

Online Business and Technology

Production, operations, and the Supply Chain

Marketing and Consumer Behavior

Product Development and Pricing Strategies

Promotion and Distribution

Financing and Tracking Business Operations

Investment Opportunities in the Securities Market

Business Law

Constructing an Effective Business Plan

Business Communications

Finding a Job

Personal Finance

Filters