Question 1

The most important part of the small business financial plan is the

Accepted Answer

A) income statement. 
B) balance sheet. 
C) inventory analysis. 
D) cash budget. 
E) break-even chart. 
A) income statement. 
B) balance sheet. 
C) inventory analysis. 
D) cash budget. 
E) break-even chart.

Question 2

Primarily because they require few resources,____________________ businesses are the fastest-growing segment of small-business enterprise.

Accepted Answer

The answer of Primarily because they require few resources,____________________ businesses...

Question 3

History has shown that major innovations are as likely to come from small businesses (or individuals)as from big businesses.

Accepted Answer

A) True 
 B)False

Question 4

Webkinz was the first toy company to sell stuffed animals with codes for play on an Internet game site.It was a

Accepted Answer

A) niche creator. 
B) company with a first-mover advantage. 
C) service business. 
D) Strategy imitator. 
E) product assimilator. 
A) niche creator. 
B) company with a first-mover advantage. 
C) service business. 
D) Strategy imitator. 
E) product assimilator.

Question 5

Which of the following statements comparing small businesses to large businesses is FALSE?

Accepted Answer

A) More new jobs are created by small than by large businesses. 
B) Large businesses show better financial performance than small businesses. 
C) Small businesses represent the majority of new businesses started each year. 
D) Small businesses can typically produce and deliver specialty products more efficiently than large businesses. 
E) Small businesses outnumber large businesses by nearly 100 to 1. 
A) More new jobs are created by small than by large businesses. 
B) Large businesses show better financial performance than small businesses. 
C) Small businesses represent the majority of new businesses started each year. 
D) Small businesses can typically produce and deliver specialty products more efficiently than large businesses. 
E) Small businesses outnumber large businesses by nearly 100 to 1.

Question 6

A franchise usually involves less uncertainty and less risk than starting a business from scratch.

Accepted Answer

A) True 
 B)False

Question 7

In which of the following industries are you LEAST likely to find a small business owner performing well due to a lack of economies of scale?

Accepted Answer

A) Construction 
B) Transportation 
C) Service 
D) Retailing 
E) Manufacturing 
A) Construction 
B) Transportation 
C) Service 
D) Retailing 
E) Manufacturing

Question 8

Which of the following is NOT considered to be a distinctive competency for small business?

Accepted Answer

A) Ability to move quickly to seize new opportunities 
B) Ability to achieve economies of scale 
C) Ability to identify new niches in established markets 
D) Ability to identify new markets 
E) Ability to exploit a first-mover advantage 
A) Ability to move quickly to seize new opportunities 
B) Ability to achieve economies of scale 
C) Ability to identify new niches in established markets 
D) Ability to identify new markets 
E) Ability to exploit a first-mover advantage

Question 9

While watching her Dad cook bacon in the microwave,10-year-old Abby Fleck asked,"Wouldn't it be less messy if you hung the bacon to cook?" After breakfast,she and her Dad went to the basement and created the Makin Bacon,a gadget for making bacon cooking less messy.Abby,her parents,and her grandparents own and operate a company that makes and sells Makin Bacon trays.Her first big customer was Armour Bacon,which purchased the gadget to sell as a premium on its packages of bacon.This is a small business that has contributed by its

Accepted Answer

A) innovation and its importance to a big company. 
B) financial performance and impact on its external environment. 
C) innovation and its impact on the internal environment of Armour. 
D) job creation, innovation, and importance to big business as a whole. 
E) job creation and innovation. 
A) innovation and its importance to a big company. 
B) financial performance and impact on its external environment. 
C) innovation and its impact on the internal environment of Armour. 
D) job creation, innovation, and importance to big business as a whole. 
E) job creation and innovation.

Question 10

The distinctive competencies of small business usually fall into three areas: the ability to identify new niches in established markets,the ability to identify new markets,and the ability to move ____________________.

Accepted Answer

quickly to

Question 11

Match the following.You may use a response once,more than once,or not at all.

Accepted Answer

The answer of Match the following.You may use a response...

Question 12

Entrepreneurs who decide to start from scratch rather than buy an existing business have better odds of success.

Accepted Answer

A) True 
 B)False

Question 13

Why are some small business owners successful in the wholesaling industry?

Accepted Answer

A) A wholesaling business does not require a large capital investment. 
B) Small businesses have access to more technology. 
C) Wholesaling businesses serve more customers than retail businesses. 
D) Small business owners are able to develop personal working relationships with their buyers. 
E) All of these choices 
A) A wholesaling business does not require a large capital investment. 
B) Small businesses have access to more technology. 
C) Wholesaling businesses serve more customers than retail businesses. 
D) Small business owners are able to develop personal working relationships with their buyers. 
E) All of these choices

Question 14

In which of the following ventures would a small business operator be most effective?

Accepted Answer

A) Construction 
B) Transportation 
C) Services 
D) Manufacturing 
E) Wholesale 
A) Construction 
B) Transportation 
C) Services 
D) Manufacturing 
E) Wholesale

Question 15

A small business can only have one owner.

Accepted Answer

A) True 
 B)False

Question 16

____________________ businesses supply over half of all "innovations" introduced into the U.S.marketplace each year.

Accepted Answer

The answer of ____________________ businesses supply over half of all...

Question 17

____ are a group of small investors seeking to make profits on companies with rapid growth potential.

Accepted Answer

A) Intrapreneurs 
B) Hierarchical allies 
C) Stakeholders 
D) Venture capitalists 
E) Bondholders 
A) Intrapreneurs 
B) Hierarchical allies 
C) Stakeholders 
D) Venture capitalists 
E) Bondholders

Question 18

The most significant change in small business is

Accepted Answer

A) the increase in the number of male-owned businesses. 
B) the increase in the number of small business failures. 
C) the decline in the number of sources of financing for small businesses. 
D) the rapid emergence of electronic commerce. 
E) the luring of entrepreneurs back to corporate America for financial security. 
A) the increase in the number of male-owned businesses. 
B) the increase in the number of small business failures. 
C) the decline in the number of sources of financing for small businesses. 
D) the rapid emergence of electronic commerce. 
E) the luring of entrepreneurs back to corporate America for financial security.

Question 19

A(n)____________________ is an enterprise with sales and assets that are not large enough to influence its environment.

Accepted Answer

The answer of A(n)____________________ is an enterprise with sales and...

Question 20

Which of the following is NOT generally considered to be a role performed by small businesses?

Accepted Answer

A) Creation of new jobs 
B) Development of new products 
C) Manufacture of materials for large businesses 
D) Distribution of products made by large businesses 
E) Provision of capital for expansion of large businesses 
A) Creation of new jobs 
B) Development of new products 
C) Manufacture of materials for large businesses 
D) Distribution of products made by large businesses 
E) Provision of capital for expansion of large businesses

Exam 10: Managing New Venture Formation and Entrepreneurship

The most important part of the small business financial plan is the

Primarily because they require few resources,____________________ businesses are the fastest-growing segment of small-business enterprise.

History has shown that major innovations are as likely to come from small businesses (or individuals)as from big businesses.

Webkinz was the first toy company to sell stuffed animals with codes for play on an Internet game site.It was a

Which of the following statements comparing small businesses to large businesses is FALSE?

A franchise usually involves less uncertainty and less risk than starting a business from scratch.

In which of the following industries are you LEAST likely to find a small business owner performing well due to a lack of economies of scale?

Which of the following is NOT considered to be a distinctive competency for small business?

The distinctive competencies of small business usually fall into three areas: the ability to identify new niches in established markets,the ability to identify new markets,and the ability to move ____________________.

Match the following.You may use a response once,more than once,or not at all.

Entrepreneurs who decide to start from scratch rather than buy an existing business have better odds of success.

Why are some small business owners successful in the wholesaling industry?

In which of the following ventures would a small business operator be most effective?

A small business can only have one owner.

____________________ businesses supply over half of all "innovations" introduced into the U.S.marketplace each year.

____ are a group of small investors seeking to make profits on companies with rapid growth potential.

The most significant change in small business is

A(n)____________________ is an enterprise with sales and assets that are not large enough to influence its environment.

Which of the following is NOT generally considered to be a role performed by small businesses?

Managing and the Managers Job

Traditional and Contemporary Issues and Challenges

The Environment and Culture of Organizations

The Ethical and Social Environment

The Global Environment

The Multicultural Environment

Basic Elements of Planning and Decision Making

Managing Strategy and Strategic Planning

Managing Decision Making and Problem Solving

Basic Elements of Organizing

Managing Organization Design

Managing Organization Change and Innovation

Managing Human Resources in Organizations

Basic Elements of Individual Behavior in Organizations

Managing Employee Motivation and Performance

Managing Leadership and Influence Processes

Managing Interpersonal Relations and Communication

Managing Work Groups and Teams

Basic Elements of Control

Managing Operations, Quality, and Productivity

Managing Information and Information Technology

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