Question 1

Intrapreneurs make use of ________ to develop and launch new products and generate new profits.

Accepted Answer

A)  their employer's existing human, financial, and physical resources 
B)  their own personal financial resources 
C)  government-supplied physical and financial resources 
D)  old ideas abandoned by entrepreneurs

Question 2

As the owner of a small manufacturing business, Finn has an interest in exporting. However, he doesn't know how to get started. Fortunately, the government provides an abundance of information to encourage entrepreneurs like Finn.

Accepted Answer

A) True 
 B)False

Question 3

There are several ethical considerations when starting a business, but competing against current and former work relationships is always fair game.

Accepted Answer

A) True 
 B)False

Question 4

Entrepreneurs applying for a bank loan should realize that bankers will

Accepted Answer

A)  expect to receive a share of ownership in the business in exchange for their loan. 
B)  expect the entrepreneur to provide a business plan. 
C)  generally make loans only to small businesses in dot-com related industries. 
D)  offer only short-term financing.

Question 5

Compared to employees of large businesses, small business employees are less satisfied with their work because they see their jobs as less challenging.

Accepted Answer

A) True 
 B)False

Question 6

Mini-Case
Pepe Pieman believes that pizza is a much more versatile meal than most people realize. As the national marketing manager for Pizza Pals, he has watched how consumers ate up barbecue pizza, Hawaiian pizza, Mexican pizza, and other new and unique combinations. His superiors, however, met his suggestions for other unusual pizzas with a negative response. Even some of his teammates laughed at his ideas. Pepe's confidence in his ability to understand the market has led him to focus on planning a business of his own. Pepe realizes that he will take a risk when he leaves his job with Pizza Pals and sets off on a new endeavor: Pepe's Pizzazzeria. Pepe is excited about the potential of profitably catering to the unmet desires of pizza consumers.
-Pepe has asked about the possibility of obtaining a microloan from the SBA. This type of loan is awarded primarily on the basis of the

Accepted Answer

A)  borrower's integrity and the soundness of the business idea. 
B)  amount of collateral the borrower can pledge. 
C)  borrower's credit history and record of previous business success. 
D)  age of the borrower, since only senior citizens qualify.

Question 7

Although corporate managers often exhibit the skills required of successful entrepreneurs, they seldom have the desire to give up the perks and fringe benefits of corporate life and start their own business.

Accepted Answer

A) True 
 B)False

Question 8

Matteo just left the Army after 20 years of service. During his service, he managed to save a little money and is now entitled to a government pension. His wants to go back to his home state of Arizona and start manufacturing small, solar-powered panels for residential use. Although he knows he needs a storefront and an industrial site, he is not 100 percent convinced about where to locate. However, he does know for certain that one of his top priorities is to limit his tax liability associated with this new business. What would you suggest for Matteo?

Accepted Answer

A)  He should make certain he is deeply passionate about the product he is developing, before he explores the need. 
B)  He should keep it small, especially in the beginning. 
C)  He should take out a lot of insurance in case he finds out that he has not paid enough taxes. 
D)  He should check out the enterprise zones in Arizona.

Question 9

The most important difference between entrepreneurs and micropreneurs is the focus placed by micropreneurs on balancing the demands of work and family.

Accepted Answer

A) True 
 B)False

Question 10

After retiring as a telecommunications executive, Bruce joined SCORE. As a SCORE counselor Bruce will

Accepted Answer

A)  provide venture capital funds for aspiring small businesspeople. 
B)  visit high schools to advise students who are thinking about starting their own business. 
C)  help in the research and development of new products for entrepreneurs to market. 
D)  provide consulting services to small businesses for free.

Question 11

Entrepreneurial teams combine the creative marketing and production ideas of a group of experienced people.

Accepted Answer

A) True 
 B)False

Question 12

After personal savings, the next largest source of capital for entrepreneurs is from

Accepted Answer

A)  large multinational banks. 
B)  the Small Business Administration. 
C)  state and local governments. 
D)  friends and family.

Question 13

While entrepreneurs frequently earn significant profits for themselves, their impact on society is quite small.

Accepted Answer

A) True 
 B)False

Question 14

Big businesses do not serve all the needs of a market.

Accepted Answer

A) True 
 B)False

Question 15

Individuals wanting to learn about small business operations are advised to learn from other entrepreneurs.

Accepted Answer

A) True 
 B)False

Question 16

According to the Small Business Administration, poor management is the cause of the majority of small business failures.

Accepted Answer

A) True 
 B)False

Question 17

An effective business plan analyzes the competition and identifies the resources required to profitably serve a target market.

Accepted Answer

A) True 
 B)False

Question 18

In order to qualify for a microloan from the SBA, an entrepreneur must have adequate collateral and a proven track record of success.

Accepted Answer

A) True 
 B)False

Question 19

Dr. Pearl White just graduated from dental school. She is hoping to acquire the necessary funding to start her own dental practice. One advantage of this type of business is

Accepted Answer

A)  above-average opportunity to borrow funds at a high interest rate. 
B)  nearly unlimited growth potential. 
C)  the service is individualized and not easily mass-produced. 
D)  very low start-up costs.

Question 20

Commercial loan officers and insurance agents offer expert assistance that can be valuable to small business owners.

Accepted Answer

A) True 
 B)False

Exam 6: Entrepreneurship and Starting a Small Business

Intrapreneurs make use of ________ to develop and launch new products and generate new profits.

As the owner of a small manufacturing business, Finn has an interest in exporting. However, he doesn't know how to get started. Fortunately, the government provides an abundance of information to encourage entrepreneurs like Finn.

There are several ethical considerations when starting a business, but competing against current and former work relationships is always fair game.

Entrepreneurs applying for a bank loan should realize that bankers will

Compared to employees of large businesses, small business employees are less satisfied with their work because they see their jobs as less challenging.

Although corporate managers often exhibit the skills required of successful entrepreneurs, they seldom have the desire to give up the perks and fringe benefits of corporate life and start their own business.

The most important difference between entrepreneurs and micropreneurs is the focus placed by micropreneurs on balancing the demands of work and family.

After retiring as a telecommunications executive, Bruce joined SCORE. As a SCORE counselor Bruce will

Entrepreneurial teams combine the creative marketing and production ideas of a group of experienced people.

After personal savings, the next largest source of capital for entrepreneurs is from

While entrepreneurs frequently earn significant profits for themselves, their impact on society is quite small.

Big businesses do not serve all the needs of a market.

Individuals wanting to learn about small business operations are advised to learn from other entrepreneurs.

According to the Small Business Administration, poor management is the cause of the majority of small business failures.

An effective business plan analyzes the competition and identifies the resources required to profitably serve a target market.

In order to qualify for a microloan from the SBA, an entrepreneur must have adequate collateral and a proven track record of success.

Dr. Pearl White just graduated from dental school. She is hoping to acquire the necessary funding to start her own dental practice. One advantage of this type of business is

Commercial loan officers and insurance agents offer expert assistance that can be valuable to small business owners.