Question 1

The start-up schedule section in a business plan would forecast its income,expenses,and cash flow for the first 3 years of business.

Accepted Answer

A) True 
 B)False  False

Question 2

Unlike a corporate board of directors,an advisory board has legal responsibilities.

Accepted Answer

A) True 
 B)False  False

Question 3

A 12-employee executive recruiting firm making $750,000 per year would be a small business.

Accepted Answer

A) True 
 B)False  True

Question 4

Keri Sears uses the funding platform Kickstarter to solicit money to start a not-for-profit organization that promotes folk musicians and revives interest in the folk and traditional forms of music in America.She invites people to fund the business project and she states that donors will be honored on the organization's website.She sets a six-month goal to raise the money.Keri is using which of the following forms of financing?

Accepted Answer

A)  angel investors 
B)  business incubator 
C)  threshold pledge system 
D)  fund and release system 
E)  crowdfunding 
A)  angel investors 
B)  business incubator 
C)  threshold pledge system 
D)  fund and release system 
E)  crowdfunding

Question 5

Compare and contrast business partners with mentors and advisory boards as sources of advice and support for entrepreneurs?

Accepted Answer

Banks,credit card companies,software com

Question 6

How do downsizing and outsourcing influence the number of small businesses?

Accepted Answer

Business start-ups often soar when the e

Question 7

One of the general characteristics of a small business is that it typically sells fewer products ________.

Accepted Answer

A)  to a larger customer base 
B)  to fewer market segments 
C)  to foreign companies 
D)  at lower costs to government agencies 
E)  at higher costs 
A)  to a larger customer base 
B)  to fewer market segments 
C)  to foreign companies 
D)  at lower costs to government agencies 
E)  at higher costs

Question 8

Which of the following is a major difference between banks and venture capitalists as categories of private financing?

Accepted Answer

A)  Unlike banks, which recruit investment specialists, venture capitalists are private investors without any specialized investment skills. 
B)  Unlike banks, which provide investment for high-risk businesses, venture capitalists won't lend money to a start-up that hasn't established a successful record of accomplishment. 
C)  Unlike banks, which don't require collateral, venture capitalists provide investments only when an entrepreneur puts up marketable collateral. 
D)  Unlike banks, which only provide money, venture capitalists also provide management expertise. 
E)  Unlike banks, which are extremely focused and selective in giving loans, venture capitalists are less focused and provide loans to a large number of start-ups. 
A)  Unlike banks, which recruit investment specialists, venture capitalists are private investors without any specialized investment skills. 
B)  Unlike banks, which provide investment for high-risk businesses, venture capitalists won't lend money to a start-up that hasn't established a successful record of accomplishment. 
C)  Unlike banks, which don't require collateral, venture capitalists provide investments only when an entrepreneur puts up marketable collateral. 
D)  Unlike banks, which only provide money, venture capitalists also provide management expertise. 
E)  Unlike banks, which are extremely focused and selective in giving loans, venture capitalists are less focused and provide loans to a large number of start-ups.

Question 9

From the perspective of the franchisee,list 3 advantages and 3 disadvantages of buying a franchise.

Accepted Answer

From the perspective of the franchisee,a

Question 10

Compare and contrast lifestyle businesses with high-growth ventures.

Accepted Answer

The majority of small businesses are mod

Question 11

Describe the qualities of a successful entrepreneur.How is an intrapreneur different from an entrepreneur? What are the unique challenges faced by an intrapreneur?

Accepted Answer

Successful entrepreneurs tend to love wh

Question 12

Small businesses can seek private financing in all of the following ways EXCEPT ________.

Accepted Answer

A)  selling stocks and bonds 
B)  seeking angel investors 
C)  tapping personal savings 
D)  attracting venture capitalists 
E)  using credit cards and lines of credit 
A)  selling stocks and bonds 
B)  seeking angel investors 
C)  tapping personal savings 
D)  attracting venture capitalists 
E)  using credit cards and lines of credit

Question 13

Well-known examples of ________ include Taco Bell,Pizza Hut,The UPS Store,and Curves fitness centers.

Accepted Answer

A)  product franchises 
B)  business franchises 
C)  manufacturing franchises 
D)  global franchises 
E)  discount franchises 
A)  product franchises 
B)  business franchises 
C)  manufacturing franchises 
D)  global franchises 
E)  discount franchises

Question 14

Matthew decides to open a cafe in his neighborhood,called Coffee Beans.While analyzing the start-up options,he decides against buying an existing independent business,or even buying into a franchise system.Because of a recent reduction in the availability of loans to entrepreneurs,he is unable to get a bank loan.He is likely to have which of the following benefits?

Accepted Answer

A)  He will have established brand recognition. 
B)  Since business processes and systems are usually in place, he need not create them. 
C)  Support networks are already in place, so he need not update them. 
D)  He need not hire and train the workforce at his own expense. 
E)  He will experience very high freedom and flexibility. 
A)  He will have established brand recognition. 
B)  Since business processes and systems are usually in place, he need not create them. 
C)  Support networks are already in place, so he need not update them. 
D)  He need not hire and train the workforce at his own expense. 
E)  He will experience very high freedom and flexibility.

Question 15

Angel investors provide money to finance new businesses in exchange for a large rate of interest.

Accepted Answer

A) True 
 B)False

Question 16

Among all firms that apply for U.S.patents on new inventions,small businesses receive 13 times more patents per employee than larger firms.

Accepted Answer

A) True 
 B)False

Question 17

A small business is defined as a company that ________.

Accepted Answer

A)  is newly launched and has fewer than 100 shareholders 
B)  is dominant in its field and employs fewer than 1,500 employees 
C)  has revenue of less than $750,000 
D)  is independently owned and operated and not dominant in its field 
E)  is funded through personal lines of credit and has fewer than 1,000 employees 
A)  is newly launched and has fewer than 100 shareholders 
B)  is dominant in its field and employs fewer than 1,500 employees 
C)  has revenue of less than $750,000 
D)  is independently owned and operated and not dominant in its field 
E)  is funded through personal lines of credit and has fewer than 1,000 employees

Question 18

A business plan outlines that investors will be able to sell their investment through a public stock offering,or a buyback of the investors' interest.This is an example of which of the following elements of a business plan?

Accepted Answer

A)  start-up schedule 
B)  operations plan 
C)  exit strategy 
D)  marketing strategy 
E)  target market 
A)  start-up schedule 
B)  operations plan 
C)  exit strategy 
D)  marketing strategy 
E)  target market

Question 19

Compare and contrast business incubators with networks and support groups as sources of advice and support for entrepreneurs?

Accepted Answer

Many cities across the country have loca

Question 20

The first infusion of capital that a business receives is called seed money.

Accepted Answer

A) True 
 B)False

The start-up schedule section in a business plan would forecast its income,expenses,and cash flow for the first 3 years of business.

Unlike a corporate board of directors,an advisory board has legal responsibilities.

A 12-employee executive recruiting firm making $750,000 per year would be a small business.

Compare and contrast business partners with mentors and advisory boards as sources of advice and support for entrepreneurs?

How do downsizing and outsourcing influence the number of small businesses?

One of the general characteristics of a small business is that it typically sells fewer products ________.

Which of the following is a major difference between banks and venture capitalists as categories of private financing?

From the perspective of the franchisee,list 3 advantages and 3 disadvantages of buying a franchise.

Compare and contrast lifestyle businesses with high-growth ventures.

Describe the qualities of a successful entrepreneur.How is an intrapreneur different from an entrepreneur? What are the unique challenges faced by an intrapreneur?

Small businesses can seek private financing in all of the following ways EXCEPT ________.

Well-known examples of ________ include Taco Bell,Pizza Hut,The UPS Store,and Curves fitness centers.

Angel investors provide money to finance new businesses in exchange for a large rate of interest.

Among all firms that apply for U.S.patents on new inventions,small businesses receive 13 times more patents per employee than larger firms.

A small business is defined as a company that ________.

A business plan outlines that investors will be able to sell their investment through a public stock offering,or a buyback of the investors' interest.This is an example of which of the following elements of a business plan?

Compare and contrast business incubators with networks and support groups as sources of advice and support for entrepreneurs?

The first infusion of capital that a business receives is called seed money.

Developing a Business Mindset

Understanding Basic Economics

The Global Marketplace

Business Ethics and Corporate Social Responsibility

Forms of Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Product and Pricing Strategies

Distribution and Marketing Logistics

Customer Communication

Financial Information and Accounting Concepts

Financial Management

Financial Markets and Investment Strategies

The Money Supply and Banking Systems

Filters

Exam 6: Entrepreneurship and Small Business Ownership

The start-up schedule section in a business plan would forecast its income,expenses,and cash flow for the first 3 years of business.

Unlike a corporate board of directors,an advisory board has legal responsibilities.

A 12-employee executive recruiting firm making $750,000 per year would be a small business.

Compare and contrast business partners with mentors and advisory boards as sources of advice and support for entrepreneurs?

How do downsizing and outsourcing influence the number of small businesses?

One of the general characteristics of a small business is that it typically sells fewer products ________.

Which of the following is a major difference between banks and venture capitalists as categories of private financing?

From the perspective of the franchisee,list 3 advantages and 3 disadvantages of buying a franchise.

Compare and contrast lifestyle businesses with high-growth ventures.

Describe the qualities of a successful entrepreneur.How is an intrapreneur different from an entrepreneur? What are the unique challenges faced by an intrapreneur?

Small businesses can seek private financing in all of the following ways EXCEPT ________.

Well-known examples of ________ include Taco Bell,Pizza Hut,The UPS Store,and Curves fitness centers.

Angel investors provide money to finance new businesses in exchange for a large rate of interest.

Among all firms that apply for U.S.patents on new inventions,small businesses receive 13 times more patents per employee than larger firms.

A small business is defined as a company that ________.

A business plan outlines that investors will be able to sell their investment through a public stock offering,or a buyback of the investors' interest.This is an example of which of the following elements of a business plan?

Compare and contrast business incubators with networks and support groups as sources of advice and support for entrepreneurs?

The first infusion of capital that a business receives is called seed money.

Developing a Business Mindset

Understanding Basic Economics

The Global Marketplace

Business Ethics and Corporate Social Responsibility

Forms of Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Product and Pricing Strategies

Distribution and Marketing Logistics

Customer Communication

Financial Information and Accounting Concepts

Financial Management

Financial Markets and Investment Strategies

The Money Supply and Banking Systems

Filters