Question 1

________ provide a small business with a wide array of support resources and services during its early growth phase.

Accepted Answer

A)  Seed centers 
B)  Business incubators 
C)  Microlenders 
D)  Angel investors 
E)  Intrapreneurs 
A)  Seed centers 
B)  Business incubators 
C)  Microlenders 
D)  Angel investors 
E)  Intrapreneurs

Question 2

Which of the following is an example of a lifestyle business?

Accepted Answer

A)  A paper-recycling unit that employs about 800 employees. 
B)  A self-employed landscape designer. 
C)  Nature's Delights, an international gourmet food chain reputed to be the world's leading retailer of natural and organic foods. 
D)  Museum of Fine Arts, a government-funded museum that houses a collection of 19th and 20th century American, German, and French paintings. 
E)  Freedom Books, a firm that is the leader in the English-language book publishing sector. 
A)  A paper-recycling unit that employs about 800 employees. 
B)  A self-employed landscape designer. 
C)  Nature's Delights, an international gourmet food chain reputed to be the world's leading retailer of natural and organic foods. 
D)  Museum of Fine Arts, a government-funded museum that houses a collection of 19th and 20th century American, German, and French paintings. 
E)  Freedom Books, a firm that is the leader in the English-language book publishing sector.

Question 3

Which of the following is most likely to encourage entrepreneurship?

Accepted Answer

A)  inability to find attractive employment anywhere else 
B)  increased market regulations 
C)  inadequate protection of property rights 
D)  excessive market regulation 
E)  monopolistic business practices 
A)  inability to find attractive employment anywhere else 
B)  increased market regulations 
C)  inadequate protection of property rights 
D)  excessive market regulation 
E)  monopolistic business practices

Question 4

Define a small business? What is the economic role of small businesses?

Accepted Answer

A SMALL BUSINESS IS A COMPANY THAT IS IN

Question 5

________ are organizations,often not-for-profit,that lend smaller amounts of money to business owners who might not qualify for conventional bank loans.

Accepted Answer

A)  Angel groups 
B)  Venture capitalists 
C)  Angel investors 
D)  Microlenders 
E)  Franchises 
A)  Angel groups 
B)  Venture capitalists 
C)  Angel investors 
D)  Microlenders 
E)  Franchises

Question 6

Todd D.Morrison is the manager of an advanced research team at LCM Inc.,a pharmaceutical company.Todd is keen to introduce process improvements aimed at making the business unit more profitable.He also uses innovative leadership methods,such as giving team members greater flexibility and freedom.Todd takes direct responsibility for turning an idea into a profitable finished product through assertive risk-taking and innovation.Todd Morrison's efforts are an example of ________.

Accepted Answer

A)  intrapreneurship 
B)  outsourcing 
C)  downsizing 
D)  vertical integration 
E)  horizontal integration 
A)  intrapreneurship 
B)  outsourcing 
C)  downsizing 
D)  vertical integration 
E)  horizontal integration

Question 7

A(n)________ is a form of "group mentoring" in which you assemble a team of people with subject-area expertise or vital contacts to help review plans and decisions.

Accepted Answer

A)  advisory board 
B)  business incubator 
C)  venture capitalist 
D)  angel investor 
E)  micro lender 
A)  advisory board 
B)  business incubator 
C)  venture capitalist 
D)  angel investor 
E)  micro lender

Question 8

An advisory board differs from a corporate board of directors,because ________.

Accepted Answer

A)  an advisory board has legal responsibilities 
B)  you don't have to incorporate to establish an advisory board 
C)  you usually require high amounts of financial compensation to consult an advisory board 
D)  members of an advisory board lack subject-area expertise 
E)  advisors are required to obtain certification from SBA 
A)  an advisory board has legal responsibilities 
B)  you don't have to incorporate to establish an advisory board 
C)  you usually require high amounts of financial compensation to consult an advisory board 
D)  members of an advisory board lack subject-area expertise 
E)  advisors are required to obtain certification from SBA

Question 9

In large organizations,mechanisms put in place to prevent mistakes can also hamper innovative thinking by restricting people to tried-and-true methods.

Accepted Answer

A) True 
 B)False

Question 10

Small businesses employ about ________ of the private-sector workforce and create roughly ________ of all new jobs.

Accepted Answer

A)  one-third; one-fifth 
B)  half; two-thirds 
C)  one-fourth; half 
D)  two-thirds; half 
E)  one-third; two-thirds 
A)  one-third; one-fifth 
B)  half; two-thirds 
C)  one-fourth; half 
D)  two-thirds; half 
E)  one-third; two-thirds

Question 11

Which of the following is TRUE about a small business?

Accepted Answer

A)  A small business employs from 500 to 1000 employees. 
B)  A small business is usually funded by personal lines of credit, and not through bank loans and microlenders. 
C)  A small business is one that is not dominant in its field. 
D)  A small firm usually curtails the freedom to innovate. 
E)  A small firm avoids risks that larger firms are willing to take. 
A)  A small business employs from 500 to 1000 employees. 
B)  A small business is usually funded by personal lines of credit, and not through bank loans and microlenders. 
C)  A small business is one that is not dominant in its field. 
D)  A small firm usually curtails the freedom to innovate. 
E)  A small firm avoids risks that larger firms are willing to take.

Question 12

In exchange for a small share of ownership,KMC Group makes a small investment in TechPro,a new,independent software firm.KMC Group provides support to TechPro during its early stages by helping the founders refine their ideas,hire suitable employees and train them,establish connections with industry insiders,and deal with legal issues.KMC Group is most likely to be a(n)________.

Accepted Answer

A)  advisory board 
B)  mentor 
C)  business incubator 
D)  seed center 
E)  microlender 
A)  advisory board 
B)  mentor 
C)  business incubator 
D)  seed center 
E)  microlender

Question 13

Baskin-Robbins gives its franchisees the right to resell its trademarked goods that must be purchased from Baskin-Robbins.This is an example of a product franchise.

Accepted Answer

A) True 
 B)False

Question 14

Preparing a business plan serves which of the following functions?

Accepted Answer

A)  It assists the owners in preparing publicity releases for the business. 
B)  It helps persuade lenders and investors to finance the business. 
C)  It identifies sources of potential employees for the business. 
D)  It fulfills the requirements set forth by the Small Business Administration. 
E)  It meets licensing regulations established by the local government. 
A)  It assists the owners in preparing publicity releases for the business. 
B)  It helps persuade lenders and investors to finance the business. 
C)  It identifies sources of potential employees for the business. 
D)  It fulfills the requirements set forth by the Small Business Administration. 
E)  It meets licensing regulations established by the local government.

Question 15

When companies go public,they put out an IPO,or initial public offering.

Accepted Answer

A) True 
 B)False

Question 16

Investors who provide money to finance new businesses or turnarounds in exchange for a portion of ownership,with the objective of reselling the business at a profit are called ________.

Accepted Answer

A)  angel investors 
B)  microlenders 
C)  venture capitalists 
D)  advisory boards 
E)  business incubators 
A)  angel investors 
B)  microlenders 
C)  venture capitalists 
D)  advisory boards 
E)  business incubators

Question 17

Technical Solutions Inc.,a leading software solutions firm in Dallas with 1000 employees,is facing a financial crunch because of the economic downfall.Several of its key investors have backed out,and it has lost some projects to its competitors.The CEO of the company considers cost-cutting measures to turn around the organization.An analysis of the situation reveals that many of its employees have become redundant as their work roles have reduced considerably.The firm also employs a large number of people who are almost at the retirement age.Which of the following measures will be most appropriate for the company,from a business perspective?

Accepted Answer

A)  downsizing 
B)  vertical integration 
C)  outsourcing 
D)  diversification 
E)  market penetration 
A)  downsizing 
B)  vertical integration 
C)  outsourcing 
D)  diversification 
E)  market penetration

Question 18

Which of the following statements is TRUE about the Service Corps of Retired Executives (SCORE)?

Accepted Answer

A)  It is a resource partner of the SBA. 
B)  It works on a contractual basis with large businesses. 
C)  It offers advice and one-to-one counseling to entrepreneurs, in return for company shares. 
D)  It offers resources and programs to minority-owned businesses. 
E)  It hires retired executives to work as consultants for a nominal fee. 
A)  It is a resource partner of the SBA. 
B)  It works on a contractual basis with large businesses. 
C)  It offers advice and one-to-one counseling to entrepreneurs, in return for company shares. 
D)  It offers resources and programs to minority-owned businesses. 
E)  It hires retired executives to work as consultants for a nominal fee.

Question 19

Compare and contrast small companies with large ones?

Accepted Answer

Small companies tend to differ from larg

Question 20

Lifestyle businesses are small only because they are new and have ambitious plans to grow.

Accepted Answer

A) True 
 B)False

________ provide a small business with a wide array of support resources and services during its early growth phase.

Which of the following is an example of a lifestyle business?

Which of the following is most likely to encourage entrepreneurship?

Define a small business? What is the economic role of small businesses?

________ are organizations,often not-for-profit,that lend smaller amounts of money to business owners who might not qualify for conventional bank loans.

A(n)________ is a form of "group mentoring" in which you assemble a team of people with subject-area expertise or vital contacts to help review plans and decisions.

An advisory board differs from a corporate board of directors,because ________.

In large organizations,mechanisms put in place to prevent mistakes can also hamper innovative thinking by restricting people to tried-and-true methods.

Small businesses employ about of the private-sector workforce and create roughly of all new jobs.

Which of the following is TRUE about a small business?

Baskin-Robbins gives its franchisees the right to resell its trademarked goods that must be purchased from Baskin-Robbins.This is an example of a product franchise.

Preparing a business plan serves which of the following functions?

When companies go public,they put out an IPO,or initial public offering.

Investors who provide money to finance new businesses or turnarounds in exchange for a portion of ownership,with the objective of reselling the business at a profit are called ________.

Which of the following statements is TRUE about the Service Corps of Retired Executives (SCORE)?

Compare and contrast small companies with large ones?

Lifestyle businesses are small only because they are new and have ambitious plans to grow.

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

________ provide a small business with a wide array of support resources and services during its early growth phase.

Which of the following is an example of a lifestyle business?

Which of the following is most likely to encourage entrepreneurship?

Define a small business? What is the economic role of small businesses?

________ are organizations,often not-for-profit,that lend smaller amounts of money to business owners who might not qualify for conventional bank loans.

A(n)________ is a form of "group mentoring" in which you assemble a team of people with subject-area expertise or vital contacts to help review plans and decisions.

An advisory board differs from a corporate board of directors,because ________.

In large organizations,mechanisms put in place to prevent mistakes can also hamper innovative thinking by restricting people to tried-and-true methods.

Small businesses employ about ________ of the private-sector workforce and create roughly ________ of all new jobs.

Which of the following is TRUE about a small business?

Baskin-Robbins gives its franchisees the right to resell its trademarked goods that must be purchased from Baskin-Robbins.This is an example of a product franchise.

Preparing a business plan serves which of the following functions?

When companies go public,they put out an IPO,or initial public offering.

Investors who provide money to finance new businesses or turnarounds in exchange for a portion of ownership,with the objective of reselling the business at a profit are called ________.

Which of the following statements is TRUE about the Service Corps of Retired Executives (SCORE)?

Compare and contrast small companies with large ones?

Lifestyle businesses are small only because they are new and have ambitious plans to grow.

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

Small businesses employ about of the private-sector workforce and create roughly of all new jobs.