Question 1

When the business plan is finished,the entrepreneur must choose a structure.What does that mean?

Accepted Answer

When the business plan is finished and an entrepreneur must choose a structure, it means that they need to decide on the legal form that their business will take. This is a critical decision because the structure of the business will determine various factors such as the level of control the entrepreneur has, the potential personal liability they may face, tax obligations, the ability to raise capital, and the complexity of the business's operation and management.

The most common business structures include:

1. Sole Proprietorship: This is the simplest form of business structure, where the business is owned and operated by a single individual. The owner has complete control over the business, but there is no legal distinction between the owner and the business, meaning the owner is personally liable for all debts and obligations of the business.

2. Partnership: A partnership involves two or more individuals (or entities) who agree to share in the profits and losses of a business. Partnerships can be general or limited, with varying degrees of liability and involvement in the business's operations.

3. Corporation: A corporation is a separate legal entity from its owners, providing limited liability protection to its shareholders. The corporation can raise capital by issuing stock, and it is subject to corporate income taxes. It is more complex to set up and operate than a sole proprietorship or partnership.

4. Limited Liability Company (LLC): An LLC combines the liability protection of a corporation with the tax benefits and operational flexibility of a partnership. The owners of an LLC are called members, and they are not personally liable for the company's debts.

5. S Corporation: This is a special type of corporation that allows for pass-through taxation, where the business's profits and losses are reported on the owners' personal tax returns, avoiding double taxation. However, S Corporations have restrictions on the number and type of shareholders they can have.

6. Cooperative: A cooperative is a business owned and operated for the benefit of those using its services. Profits and earnings generated by the cooperative are distributed among the members, also known as user-owners.

Choosing the right business structure is essential because it affects legal exposure, tax rates, the ability to attract investors, and the overall management of the company. Entrepreneurs often consult with legal and financial advisors to determine which structure best suits their business goals, financial situation, and the level of risk they are willing to assume.

Question 2

Jane's Candy Shack is in danger of failing.She needs much consulting help,but she has limited financial resources.She contacts the SBA.She most likely will get help from the

Accepted Answer

A)  Federal Trade Commission (FT
C) . 
B)  Small Business Administration (SB
A) . 
C)  Service Corps of Retired Executives (SCOR
E) . 
D)  Active Corps of Executives (AC
E) . 
E)  Small Business Development Center (SBD
C) . 
A)  Federal Trade Commission (FT
C) . 
B)  Small Business Administration (SB
A) . 
C)  Service Corps of Retired Executives (SCOR
E) . 
D)  Active Corps of Executives (AC
E) . 
E)  Small Business Development Center (SBD
C) . E

Question 3

Match the following.You may use a response once,more than once,or not at all.
-Has an established relationship with the community

Accepted Answer

A) Starting a business from scratch 
B) Buying an existing business 
C) Buying a franchise 
D) Both starting a business from scratch and buying an existing business 
E) Both buying an existing business and buying a franchise 
A) Starting a business from scratch 
B) Buying an existing business 
C) Buying a franchise 
D) Both starting a business from scratch and buying an existing business 
E) Both buying an existing business and buying a franchise E

Question 4

Special Exercises
Jennifer Laurash was a middle manager in corporate America.She switched to work as a full time mother when her children were young.Then she started the Tiny Little T-shirt Company in her basement.Her clothing line is now international.Match the following.You may use a response once,more than once,or not at all.
-Because she has a start-up business,she needs a business mentor,preferably one who is familiar with the retail distribution business and who is not caught up in running his or her own business.Where can she find such a person?

Accepted Answer

A) Active Corps of Executives (AC
E)  
B) Service Corps of Retired Executives (SCOR
E)  
C) Small Business Development Center (SBD
C)  
D) Small Business Institute (SBI) 
E) Small Business Administration (SB
A) 
F)The National Association of Women Business Owners (NAWBO) 
A) Active Corps of Executives (AC
E)  
B) Service Corps of Retired Executives (SCOR
E)  
C) Small Business Development Center (SBD
C)  
D) Small Business Institute (SBI) 
E) Small Business Administration (SB
A) 
F)The National Association of Women Business Owners (NAWBO)

Question 5

An ____________________ is someone who puts her own resources on the line and takes a personal stake in the success or failure of the company.

Accepted Answer

The answer of An ____________________ is someone who puts her...

Question 6

____________________ systems are needed to keep a business on track and to help alert entrepreneurs to potential trouble.

Accepted Answer

The answer of ____________________ systems are needed to keep a...

Question 7

More people are discouraged to test their skills as entrepreneurs because the failure rate among small businesses has been increasing in recent years.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is NOT an example of an entrepreneur?

Accepted Answer

A)  Madeline runs a neighborhood lemonade stand by herself. 
B)  Diane Molberg started By Request,a successful home bakery business that guarantees that any item it sells is no more than 24 hours old. 
C)  Elmer Olsen created the successful Bayfield Apple Jam Company using a recipe from his wife and some investment capital. 
D)  Cindy has a yard sale once a year. 
E)  Donna Cook wanted to start a little home business 10 years ago;now she has a company that produces and markets more than 150 dry cooking mixes. 
A)  Madeline runs a neighborhood lemonade stand by herself. 
B)  Diane Molberg started By Request,a successful home bakery business that guarantees that any item it sells is no more than 24 hours old. 
C)  Elmer Olsen created the successful Bayfield Apple Jam Company using a recipe from his wife and some investment capital. 
D)  Cindy has a yard sale once a year. 
E)  Donna Cook wanted to start a little home business 10 years ago;now she has a company that produces and markets more than 150 dry cooking mixes.

Question 9

List and briefly describe the major causes of small business failure and success.

Accepted Answer

The major causes of small business failu

Question 10

The distinctive competencies of small business usually fall into three areas.Briefly discuss each of those areas.

Accepted Answer

The distinctive competencies of small bu

Question 11

A small business

Accepted Answer

A)  is publicly owned. 
B)  creates jobs faster than big businesses. 
C)  has less than 100 employees. 
D)  is easily discernible from a big business. 
E)  has sales so small it cannot influence its environment. 
A)  is publicly owned. 
B)  creates jobs faster than big businesses. 
C)  has less than 100 employees. 
D)  is easily discernible from a big business. 
E)  has sales so small it cannot influence its environment.

Question 12

Describe the entrepreneurship process.

Accepted Answer

The entrepreneurship process involves id

Question 13

Match the following.You may use a response once,more than once,or not at all.
-Can choose suppliers and employees without worrying about existing agreements

Accepted Answer

A) Starting a business from scratch 
B) Buying an existing business 
C) Buying a franchise 
D) Both starting a business from scratch and buying an existing business 
E) Both buying an existing business and buying a franchise 
A) Starting a business from scratch 
B) Buying an existing business 
C) Buying a franchise 
D) Both starting a business from scratch and buying an existing business 
E) Both buying an existing business and buying a franchise

Question 14

The ____ tells how much money is needed to operate a new business.

Accepted Answer

A)  income statement 
B)  profit and loss statement 
C)  cash budget 
D)  t-account 
E)  balance sheet 
A)  income statement 
B)  profit and loss statement 
C)  cash budget 
D)  t-account 
E)  balance sheet

Question 15

In which of the following industries are you most likely to find small business success?

Accepted Answer

A)  Retailing 
B)  Department store retailing 
C)  Wholesaling 
D)  Airline 
E)  Manufacturing 
A)  Retailing 
B)  Department store retailing 
C)  Wholesaling 
D)  Airline 
E)  Manufacturing

Question 16

Which of the following describes an entrepreneur?

Accepted Answer

A)  Richard Ames,an investor in Red Raider,which is run by his two partners 
B)  Chad Olsen,who hired a consulting firm to research his business idea and help him set up Help-Doc,which he now manages 
C)  James Hill,who owns Midtown TV but works as a Motorola engineer 
D)  Sidney Pell,who runs Midtown TV for its owner,James Hill 
E)  None of these choices 
A)  Richard Ames,an investor in Red Raider,which is run by his two partners 
B)  Chad Olsen,who hired a consulting firm to research his business idea and help him set up Help-Doc,which he now manages 
C)  James Hill,who owns Midtown TV but works as a Motorola engineer 
D)  Sidney Pell,who runs Midtown TV for its owner,James Hill 
E)  None of these choices

Question 17

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 18

Briefly describe industries in which small businesses seem to be most effective and why this seems to be the case.In what area are small businesses least successful in comparison to large businesses?

Accepted Answer

Small businesses seem to be most effecti

Question 19

Small business is a strong presence in the U.S.economy,but that is not true of most of the world's mature economies.

Accepted Answer

A) True 
 B)False

Question 20

Four general factors contribute to the failure rate of small businesses.Which of the following is NOT one of those factors?

Accepted Answer

A)  Insufficient capital 
B)  Managerial incompetence or inexperience 
C)  Low start-up costs 
D)  Weak control systems 
E)  Owner neglect 
A)  Insufficient capital 
B)  Managerial incompetence or inexperience 
C)  Low start-up costs 
D)  Weak control systems 
E)  Owner neglect

When the business plan is finished,the entrepreneur must choose a structure.What does that mean?

Jane's Candy Shack is in danger of failing.She needs much consulting help,but she has limited financial resources.She contacts the SBA.She most likely will get help from the

Match the following.You may use a response once,more than once,or not at all. -Has an established relationship with the community

An ____________________ is someone who puts her own resources on the line and takes a personal stake in the success or failure of the company.

____________________ systems are needed to keep a business on track and to help alert entrepreneurs to potential trouble.

More people are discouraged to test their skills as entrepreneurs because the failure rate among small businesses has been increasing in recent years.

Which of the following is NOT an example of an entrepreneur?

List and briefly describe the major causes of small business failure and success.

The distinctive competencies of small business usually fall into three areas.Briefly discuss each of those areas.

A small business

Describe the entrepreneurship process.

Match the following.You may use a response once,more than once,or not at all. -Can choose suppliers and employees without worrying about existing agreements

The ____ tells how much money is needed to operate a new business.

In which of the following industries are you most likely to find small business success?

Which of the following describes an entrepreneur?

The most significant change in small business is

Briefly describe industries in which small businesses seem to be most effective and why this seems to be the case.In what area are small businesses least successful in comparison to large businesses?

Small business is a strong presence in the U.S.economy,but that is not true of most of the world's mature economies.

Four general factors contribute to the failure rate of small businesses.Which of the following is NOT one of those factors?

Managing and the Managers Job

Traditional and Contemporary Opportunities and Challenges

Understanding the Organizations Environment

Responding to the Ethical and Social Environment

Navigating the Global 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 Change and Innovation

Managing Human Resources

Basic Elements of Individual and Interpersonal Behavior

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

Filters

Exam 9: Managing Start-Ups and New Ventures

When the business plan is finished,the entrepreneur must choose a structure.What does that mean?

Jane's Candy Shack is in danger of failing.She needs much consulting help,but she has limited financial resources.She contacts the SBA.She most likely will get help from the

Match the following.You may use a response once,more than once,or not at all. -Has an established relationship with the community

An ____________________ is someone who puts her own resources on the line and takes a personal stake in the success or failure of the company.

____________________ systems are needed to keep a business on track and to help alert entrepreneurs to potential trouble.

More people are discouraged to test their skills as entrepreneurs because the failure rate among small businesses has been increasing in recent years.

Which of the following is NOT an example of an entrepreneur?

List and briefly describe the major causes of small business failure and success.

The distinctive competencies of small business usually fall into three areas.Briefly discuss each of those areas.

A small business

Describe the entrepreneurship process.

Match the following.You may use a response once,more than once,or not at all. -Can choose suppliers and employees without worrying about existing agreements

The ____ tells how much money is needed to operate a new business.

In which of the following industries are you most likely to find small business success?

Which of the following describes an entrepreneur?

The most significant change in small business is

Briefly describe industries in which small businesses seem to be most effective and why this seems to be the case.In what area are small businesses least successful in comparison to large businesses?

Small business is a strong presence in the U.S.economy,but that is not true of most of the world's mature economies.

Four general factors contribute to the failure rate of small businesses.Which of the following is NOT one of those factors?

Managing and the Managers Job

Traditional and Contemporary Opportunities and Challenges

Understanding the Organizations Environment

Responding to the Ethical and Social Environment

Navigating the Global 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 Change and Innovation

Managing Human Resources

Basic Elements of Individual and Interpersonal Behavior

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

Filters