Question 1

All of the following EXCEPT ________ represent leadership issues that can cause a new business to fail.

Accepted Answer

A)  managerial incompetence 
B)  lack of strategic planning 
C)  poor cash management 
D)  lack of relevant experience 
E)  inability to transition from corporate employee to entrepreneur 
A)  managerial incompetence 
B)  lack of strategic planning 
C)  poor cash management 
D)  lack of relevant experience 
E)  inability to transition from corporate employee to entrepreneur

Question 2

Intrapreneurship refers to ________.

Accepted Answer

A)  entrepreneurial efforts within a larger organization 
B)  starting a business by buying into a franchise system 
C)  starting a business by buying an existing independent business 
D)  individuals who are responsible for strategic corporate social responsibility activities within an organization 
E)  the processes, customs, policies, laws, and institutions, which have an effect on the way a company is controlled 
A)  entrepreneurial efforts within a larger organization 
B)  starting a business by buying into a franchise system 
C)  starting a business by buying an existing independent business 
D)  individuals who are responsible for strategic corporate social responsibility activities within an organization 
E)  the processes, customs, policies, laws, and institutions, which have an effect on the way a company is controlled

Question 3

Funding a new business with credit cards or a personal line of credit ________.

Accepted Answer

A)  is the least expensive form of financing 
B)  is subject to a lot of bureaucratic procedures 
C)  involves minimum amount of risk 
D)  is used by very few entrepreneurs 
E)  is a widely available form of financing 
A)  is the least expensive form of financing 
B)  is subject to a lot of bureaucratic procedures 
C)  involves minimum amount of risk 
D)  is used by very few entrepreneurs 
E)  is a widely available form of financing

Question 4

Compared to starting a new business,buying an existing business can involve more work and more risk.

Accepted Answer

A) True 
 B)False

Question 5

Barbara owns a small florist shop that employs a couple of part-time floral designers.She doesn't expect her business to grow much,but it provides her with a comfortable income and she enjoys what she does.Barbara's business would be described as a ________.

Accepted Answer

A)  mid-size enterprise 
B)  retail business 
C)  lifestyle business 
D)  high-growth venture 
E)  service business 
A)  mid-size enterprise 
B)  retail business 
C)  lifestyle business 
D)  high-growth venture 
E)  service business

Question 6

A ________ gives a franchisee the right to produce and distribute the manufacturer's products,using supplies purchased from the franchisor.

Accepted Answer

A)  product franchise 
B)  business-format franchise 
C)  manufacturing franchise 
D)  licensed franchise 
E)  utilitarian franchise 
A)  product franchise 
B)  business-format franchise 
C)  manufacturing franchise 
D)  licensed franchise 
E)  utilitarian franchise

Question 7

A(n)________ enables the buyer to use a larger company's trade name and sell its goods or services in a specific territory.

Accepted Answer

A)  trademark 
B)  franchise 
C)  initial public offering 
D)  open source contract 
E)  network effect 
A)  trademark 
B)  franchise 
C)  initial public offering 
D)  open source contract 
E)  network effect

Question 8

Financing a business you are starting from scratch is often easier than financing an existing business.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements is TRUE about venture capitalists?

Accepted Answer

A)  They are private individuals without specialized investment skills. 
B)  They make investments in large, established businesses. 
C)  They usually make investments in low-risk, low-potential areas. 
D)  They simply provide money to new ventures, and do not provide managerial advice. 
E)  They are extremely focused and selective while investing in companies. 
A)  They are private individuals without specialized investment skills. 
B)  They make investments in large, established businesses. 
C)  They usually make investments in low-risk, low-potential areas. 
D)  They simply provide money to new ventures, and do not provide managerial advice. 
E)  They are extremely focused and selective while investing in companies.

Question 10

Money used or needed to set up a new business is ________.

Accepted Answer

A)  an incubator fund 
B)  seed money 
C)  an initial public offering 
D)  public financing 
E)  an advisory board loan 
A)  an incubator fund 
B)  seed money 
C)  an initial public offering 
D)  public financing 
E)  an advisory board loan

Question 11

A company that licenses elements of its business system to other companies is called a ________.

Accepted Answer

A)  franchisor 
B)  venture capitalist 
C)  angel investor 
D)  intrapreneur 
E)  business mentor 
A)  franchisor 
B)  venture capitalist 
C)  angel investor 
D)  intrapreneur 
E)  business mentor

Question 12

Which of the following statements is TRUE regarding the failure rates of new businesses?

Accepted Answer

A)  It is possible to calculate a precise figure that represents all types of businesses across all industries. 
B)  The definition of "failure" remains the same across businesses and business owners. 
C)  Establishing a time frame is not essential for a failure rate to have any meaning. 
D)  Structural changes in the economy are unrelated to the failure rates of new businesses. 
E)  The failure rate of new businesses is usually high during the first year. 
A)  It is possible to calculate a precise figure that represents all types of businesses across all industries. 
B)  The definition of "failure" remains the same across businesses and business owners. 
C)  Establishing a time frame is not essential for a failure rate to have any meaning. 
D)  Structural changes in the economy are unrelated to the failure rates of new businesses. 
E)  The failure rate of new businesses is usually high during the first year.

Question 13

Unlike venture capitalists,angel investors tend to ________.

Accepted Answer

A)  invest larger amounts of money in start-ups 
B)  remain involved with the company for a very short time 
C)  focus more on local opportunities 
D)  be investment specialists with an extremely focused and selective approach 
E)  invest mostly in high-potential areas 
A)  invest larger amounts of money in start-ups 
B)  remain involved with the company for a very short time 
C)  focus more on local opportunities 
D)  be investment specialists with an extremely focused and selective approach 
E)  invest mostly in high-potential areas

Question 14

If customer demand for the goods or services sold by your franchise changes,you have the ability to quickly adapt your business in response.

Accepted Answer

A) True 
 B)False

Question 15

You have decided to open a pet store and signed an agreement with Dogz-N-Catz Centers RUs.You and the company have drawn up an agreement that allows you to use the Dogz-N-Catz name and its business format,to receive training,and to use its advertising materials.Under this agreement,Dogz-N-Catz Inc.is the ________.

Accepted Answer

A)  franchisor 
B)  microinvestor 
C)  angel investor 
D)  venture capitalist 
E)  business mentor 
A)  franchisor 
B)  microinvestor 
C)  angel investor 
D)  venture capitalist 
E)  business mentor

Question 16

What is a business plan? How is it different from an executive summary?

Accepted Answer

A business plan summarizes a proposed bu

Question 17

A corporation's first offering of shares of stock to the public is called ________.

Accepted Answer

A)  a public options proposal (POP) 
B)  a secondary stock offering (SSO) 
C)  a secondary equity offering (SEO) 
D)  an initial public offering (IPO) 
E)  an inaugural funding foray (IFF) 
A)  a public options proposal (POP) 
B)  a secondary stock offering (SSO) 
C)  a secondary equity offering (SEO) 
D)  an initial public offering (IPO) 
E)  an inaugural funding foray (IFF)

Question 18

Identify and briefly describe at least 3 sources of financial aid that are available to small businesses.

Accepted Answer

(1)Private financing-family loans or pri

Question 19

Private individuals who put their own money into start-ups,with the goal of eventually selling their interest for 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 20

At the federal level,small businesses can apply for loans backed by the ________.

Accepted Answer

A)  Center for Emerging Technologies 
B)  U.S. Chamber of Commerce 
C)  Service Corps of Retired Executives 
D)  Venture Capitalists Association (VC
A)  
E)  Small Business Administration 
A)  Center for Emerging Technologies 
B)  U.S. Chamber of Commerce 
C)  Service Corps of Retired Executives 
D)  Venture Capitalists Association (VC
A)  
E)  Small Business Administration

All of the following EXCEPT ________ represent leadership issues that can cause a new business to fail.

Intrapreneurship refers to ________.

Funding a new business with credit cards or a personal line of credit ________.

Compared to starting a new business,buying an existing business can involve more work and more risk.

Barbara owns a small florist shop that employs a couple of part-time floral designers.She doesn't expect her business to grow much,but it provides her with a comfortable income and she enjoys what she does.Barbara's business would be described as a ________.

A ________ gives a franchisee the right to produce and distribute the manufacturer's products,using supplies purchased from the franchisor.

A(n)________ enables the buyer to use a larger company's trade name and sell its goods or services in a specific territory.

Financing a business you are starting from scratch is often easier than financing an existing business.

Which of the following statements is TRUE about venture capitalists?

Money used or needed to set up a new business is ________.

A company that licenses elements of its business system to other companies is called a ________.

Which of the following statements is TRUE regarding the failure rates of new businesses?

Unlike venture capitalists,angel investors tend to ________.

If customer demand for the goods or services sold by your franchise changes,you have the ability to quickly adapt your business in response.

What is a business plan? How is it different from an executive summary?

A corporation's first offering of shares of stock to the public is called ________.

Identify and briefly describe at least 3 sources of financial aid that are available to small businesses.

Private individuals who put their own money into start-ups,with the goal of eventually selling their interest for a profit,are called ________.

At the federal level,small businesses can apply for loans backed by the ________.

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

All of the following EXCEPT ________ represent leadership issues that can cause a new business to fail.

Intrapreneurship refers to ________.

Funding a new business with credit cards or a personal line of credit ________.

Compared to starting a new business,buying an existing business can involve more work and more risk.

Barbara owns a small florist shop that employs a couple of part-time floral designers.She doesn't expect her business to grow much,but it provides her with a comfortable income and she enjoys what she does.Barbara's business would be described as a ________.

A ________ gives a franchisee the right to produce and distribute the manufacturer's products,using supplies purchased from the franchisor.

A(n)________ enables the buyer to use a larger company's trade name and sell its goods or services in a specific territory.

Financing a business you are starting from scratch is often easier than financing an existing business.

Which of the following statements is TRUE about venture capitalists?

Money used or needed to set up a new business is ________.

A company that licenses elements of its business system to other companies is called a ________.

Which of the following statements is TRUE regarding the failure rates of new businesses?

Unlike venture capitalists,angel investors tend to ________.

If customer demand for the goods or services sold by your franchise changes,you have the ability to quickly adapt your business in response.

What is a business plan? How is it different from an executive summary?

A corporation's first offering of shares of stock to the public is called ________.

Identify and briefly describe at least 3 sources of financial aid that are available to small businesses.

Private individuals who put their own money into start-ups,with the goal of eventually selling their interest for a profit,are called ________.

At the federal level,small businesses can apply for loans backed by the ________.

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