Question 1

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 2

Not everyone dreams of owning their own business. Identify and describe at least three attributes of successful entrepreneurs.

Accepted Answer

The answer of Not everyone dreams of owning their own...

Question 3

A new business that sets up a(n) ________ from the start is saving itself time and grief later.

Accepted Answer

A)  angel investment network 
B)  good accounting system 
C)  detailed supplier network 
D)  vertical marketing system

Question 4

The best way to learn about small business is to "bite the bullet" and start your own.

Accepted Answer

A) True 
 B)False

Question 5

Luxe Labels, LLC, exports specialty printing equipment for the custom labeling, flexible packaging, and carton industry. Thanks to increased support from ________, this company's sales to Brazilian companies and other global opportunities have significantly increased.

Accepted Answer

A)  its newly revised website 
B)  Department of Commerce's Bureau of Industry and Security 
C)  the FDA 
D)  local politicians

Question 6

Business owners who prefer to maintain their businesses at a manageable size are called

Accepted Answer

A)  macropreneurs. 
B)  intrapreneurs. 
C)  micropreneurs. 
D)  home workers.

Question 7

The small business sector that has the best chance of significant growth is legal services.

Accepted Answer

A) True 
 B)False

Question 8

Small businesses must seek advice from outside experts. In order to put together official documents such as leases, contracts, and partnership agreements, it is important to seek the advice of ________.

Accepted Answer

A)  a friend who has already started a business. 
B)  a competitor in a similar business. 
C)  an attorney. 
D)  a marketing expert.

Question 9

Prospective entrepreneurs turned down by private lenders have little hope of getting financial help from the Small Business Administration, since the SBA's standards are even tougher than those of private lenders.

Accepted Answer

A) True 
 B)False

Question 10

Alex works for Wheelie's, a large corporation that designs and manufactures accessories for scooters, bicycles, and other children's motorized toys. She is a creative force within the company and has helped create and launch several new successful products. Alex is an example of an intrapreneur.

Accepted Answer

A) True 
 B)False

Question 11

A good business plan describes the nature of the proposed business, the target market, the competitive advantages, and the qualifications of the owners.

Accepted Answer

A) True 
 B)False

Question 12

The number of small businesses that export has increased dramatically recently.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following U.S. issues does entrepreneurship most directly affect?

Accepted Answer

A)  The political process 
B)  The ability to create jobs for others 
C)  Contributions of money to organizations that help people in need 
D)  The ability to influence national macroeconomics polices

Question 14

If you go through the exercise of preparing a business plan, only to determine that you need twice the amount of money to start the business than you have, the SBA and other expert organizations encourage you to go ahead with your plans because if you understand the market, you can use the revenues you accrue to make up the shortfall.

Accepted Answer

A) True 
 B)False

Question 15

Antonio works for a textbook publisher. However, his dream is to establish a home-based business providing his services to a variety of publishers. Antonio's primary goal is to escape the 9 to 5 world of corporate publishing and to enjoy the opportunity of working for himself. Antonio is an example of a micropreneur.

Accepted Answer

A) True 
 B)False

Question 16

Lily, an upperclassman at Riverside College, hopes to start her own business after graduation. In an effort to learn as much as she can about small business management, she talked to four friends who each offered their advice. Which of these suggestions is likely to help her the most?

Accepted Answer

A)  The best way to learn about running a business is by getting hands-on experience. You should quit school and put your dream into action. 
B)  Take courses related to small business management and then look for a job with a successful businessperson, preferably in your field of interest. 
C)  Since every business is unique, don't worry about advice from others. Go to a bank, get a business loan, and live your dream. 
D)  Starting and managing a small business requires little more than common sense. If your idea is unique, hard work will guarantee your success.

Question 17

Bad luck is the most often reported cause for small business failure.

Accepted Answer

A) True 
 B)False

Question 18

Pepe remains confident and enthusiastic even though his colleagues have poked fun at his ideas. This shows that Pepe is

Accepted Answer

A)  self-disciplined. 
B)  self-nurturing. 
C)  self-generating. 
D)  auto-inspirational.

Question 19

To be successful, entrepreneurs are dependent on the support of others for encouragement.

Accepted Answer

A) True 
 B)False

Question 20

Small businesses create 65% of the new jobs in the United States each year.

Accepted Answer

A) True 
 B)False

Exam 6: Entrepreneurship and Starting a Small Business

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

Not everyone dreams of owning their own business. Identify and describe at least three attributes of successful entrepreneurs.

A new business that sets up a(n) ________ from the start is saving itself time and grief later.

The best way to learn about small business is to "bite the bullet" and start your own.

Luxe Labels, LLC, exports specialty printing equipment for the custom labeling, flexible packaging, and carton industry. Thanks to increased support from ________, this company's sales to Brazilian companies and other global opportunities have significantly increased.

Business owners who prefer to maintain their businesses at a manageable size are called

The small business sector that has the best chance of significant growth is legal services.

Small businesses must seek advice from outside experts. In order to put together official documents such as leases, contracts, and partnership agreements, it is important to seek the advice of ________.

Prospective entrepreneurs turned down by private lenders have little hope of getting financial help from the Small Business Administration, since the SBA's standards are even tougher than those of private lenders.

Alex works for Wheelie's, a large corporation that designs and manufactures accessories for scooters, bicycles, and other children's motorized toys. She is a creative force within the company and has helped create and launch several new successful products. Alex is an example of an intrapreneur.

A good business plan describes the nature of the proposed business, the target market, the competitive advantages, and the qualifications of the owners.

The number of small businesses that export has increased dramatically recently.

Which of the following U.S. issues does entrepreneurship most directly affect?

Lily, an upperclassman at Riverside College, hopes to start her own business after graduation. In an effort to learn as much as she can about small business management, she talked to four friends who each offered their advice. Which of these suggestions is likely to help her the most?

Bad luck is the most often reported cause for small business failure.

Pepe remains confident and enthusiastic even though his colleagues have poked fun at his ideas. This shows that Pepe is

To be successful, entrepreneurs are dependent on the support of others for encouragement.

Small businesses create 65% of the new jobs in the United States each year.