Question 1

Micropreneurs are motivated by a desire to have both a satisfying family life and rewarding work.

Accepted Answer

A) True 
 B)False

Question 2

Small business employees:

Accepted Answer

A)  usually dislike their jobs and look forward to finding employment with major corporations.
B)  find their jobs less challenging than a similar job in a large corporation.
C)  usually get paid higher wages than workers in large corporations.
D)  often find more job satisfaction than their counterparts in big business.E) A) and C)
F) B) and D)

Question 3

A National Business Incubator Association study indicates that over 80 percent of incubator graduates remain in business.

Accepted Answer

A) True 
 B)False

Question 4

You can negotiate a win-win situation by offering to manage an established small business.You win from the experience;the owner wins with free time.

Accepted Answer

A) True 
 B)False

Question 5

Only about 10% of all businesses qualify as small businesses using the definition of the Small Business Administration.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not a recommended source of small business advice for persons contemplating a new business?

Accepted Answer

A)  Successful small business owners
B)  University internship programs
C)  Other prospective small business owners
D)  SCORE [Service Corps of Retired Executives]E) A) and C)
F) None of the above

Question 7

As a young boy,Drew remembers his grandfather telling him,"Son,if you can find something you like to do,and somebody is willing to pay you to do it,well,that's the secret to a great life." The way Drew saw it,this was his big break.For the past five years,he split his time between school and working for a local tree farm/nursery business.The owner recently announced he was ready to retire.As Drew began creating a business plan,he contemplated what the business might be worth? How much will he need to buy this business? For starters,Drew

Accepted Answer

A)  needs to find a government data base that outlines what nursery businesses are worth,on average,across the country.
B)  should speak with the current owner and determine the total value of assets what the business owns) ,its earning potential,and its unique advantage.
C)  will want to determine the assessed value of the acreage that the business owns,and then bid competitively.
D)  needs to understand that it's difficult to buy an existing business,rather than start your own.The key will be to meet with the company's accountant,and explain your interest.The accountant will have all the answers.E) All of the above
F) A) and C)

Question 8

The U.S.government's Immigration Act of 1990:

Accepted Answer

A)  encouraged entrepreneurs to come to the U.S.through "investor visas".
B)  established a government program to teach American workers displaced by immigration how to start their own businesses.
C)  established guidelines to help entrepreneurs recruit legal aliens as a source of low cost labor.
D)  proposed an exchange program for American and European entrepreneurs to temporarily live internationally in order to open up foreign branches for their businesses.E) A) and C)
F) All of the above

Question 9

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 10

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 11

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

Accepted Answer

A) True 
 B)False

Question 12

Due to the credit crunch during the recession of 2008,many small businesses found that _____________ were more willing to lend money to smaller operations.

Accepted Answer

A)  large corporations
B)  credit card companies
C)  international banks
D)  smaller,community banksE) A) and C)
F) B) and C)

Question 13

Jayne started a small bakery in a resort town.She was certain she had the ideal location,with plenty of hotels and inns within walking distance of her establishment.She planned to use her grandmother's recipes,using only the finest ingredients for her upscale resort customers.During the first week of business,she was disappointed with lackluster sales.When she drove past the regular breakfast style restaurants and even the Starbucks™,she noticed they were rather bustling.Jayne most likely:

Accepted Answer

A)  Did not publicize in the appropriate places.
B)  Underestimated the competition.
C)  Should have considered weather conditions before assuming that her business would be vibrant.
D)  Did not consider that small businesses never get the name recognition in resort towns that larger businesses and franchises realize.E) A) and B)
F) B) and C)

Question 14

The size of the world market is:

Accepted Answer

A)  500 million
B)  6.9 billion
C)  5 million
D)  10 trillionE) B) and D)
F) B) and C)

Question 15

Entrepreneurs are motivated by the desire to earn a profit.

Accepted Answer

A) True 
 B)False

Question 16

Jennifer,a talented photography major started a corporate photography business.She planned to solicit jobs from large corporations who needed pictures for their annual reports and websites.Although filling a unique niche,Jennifer needed the security that the business would thrive and that she would earn enough to support herself and her child.She also hoped that she would spend less time each day calling on potential clients and more time doing the actual shoots.As her small business consultant,which of the following suggestions would you have for Jennifer?

Accepted Answer

A)  Jennifer should either take the risk necessary to develop a small business,or go to work for someone else.
B)  In the beginning,it's doubtful that Jennifer will realize ease of entry,security,and good profits.She needs to make plans in the event that one or more of these does not materialize quickly.
C)  Photographers can take pictures of a multitude of things.It's probably not good strategy to limit her business to only photographing the needs of large corporations.
D)  Jennifer should definitely make time for herself each day so that she does not experience burn-out.If she plans well,leaping into her own business will provide with her several hours of unstructured time each day where she can perfect her craft even more.E) None of the above
F) B) and C)

Question 17

When seeking financial backing from a venture capitalist,a small business owner should realize that the venture capitalist will:

Accepted Answer

A)  charge an interest rate that is much higher than any other lender.
B)  not be interested in the management of the business.
C)  expect an ownership stake in the company in exchange for financial backing.
D)  demand that the money be repaid within 90 days or less.E) A) and B)
F) A) and C)

Question 18

If you plan to meet face-to-face with a banker or venture capitalist,it is not necessary to submit a business plan.

Accepted Answer

A) True 
 B)False

Question 19

Successful entrepreneurs are exclusively motivated by the desire to become rich.

Accepted Answer

A) True 
 B)False

Question 20

Successful entrepreneurs rely on others for direction and support.

Accepted Answer

A) True 
 B)False

Exam 6: Entrepreneurship and Starting a Small Business

Correct Answer
verified

Successful entrepreneurs rely on others for direction and support.

Correct Answer
verified

Entrepreneurs are motivated by the desire to earn a profit.

Correct Answer
verified

The U.S.government's Immigration Act of 1990:

Correct Answer
verified

Due to the credit crunch during the recession of 2008,many small businesses found that _____________ were more willing to lend money to smaller operations.

Correct Answer
verified

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

Correct Answer
verified

Successful entrepreneurs are exclusively motivated by the desire to become rich.

Correct Answer
verified

When seeking financial backing from a venture capitalist,a small business owner should realize that the venture capitalist will:

Correct Answer
verified

Small business employees:

Correct Answer
verified

Correct Answer
verified

If you plan to meet face-to-face with a banker or venture capitalist,it is not necessary to submit a business plan.

Correct Answer
verified

Correct Answer
verified

Micropreneurs are motivated by a desire to have both a satisfying family life and rewarding work.

Correct Answer
verified

Which of the following is not a recommended source of small business advice for persons contemplating a new business?

Correct Answer
verified

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.

Correct Answer
verified

The size of the world market is:

Correct Answer
verified

A National Business Incubator Association study indicates that over 80 percent of incubator graduates remain in business.

Correct Answer
verified

You can negotiate a win-win situation by offering to manage an established small business.You win from the experience;the owner wins with free time.

Correct Answer
verified

Only about 10% of all businesses qualify as small businesses using the definition of the Small Business Administration.

Correct Answer
verified

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

Correct Answer
verified

Exam 6: Entrepreneurship and Starting a Small Business

Correct AnswerverifiedShow Answer

Successful entrepreneurs rely on others for direction and support.

Correct AnswerverifiedShow Answer

Entrepreneurs are motivated by the desire to earn a profit.

Correct AnswerverifiedShow Answer

The U.S.government's Immigration Act of 1990:

Correct AnswerverifiedShow Answer

Due to the credit crunch during the recession of 2008,many small businesses found that _____________ were more willing to lend money to smaller operations.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Successful entrepreneurs are exclusively motivated by the desire to become rich.

Correct AnswerverifiedShow Answer

When seeking financial backing from a venture capitalist,a small business owner should realize that the venture capitalist will:

Correct AnswerverifiedShow Answer

Small business employees:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If you plan to meet face-to-face with a banker or venture capitalist,it is not necessary to submit a business plan.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Micropreneurs are motivated by a desire to have both a satisfying family life and rewarding work.

Correct AnswerverifiedShow Answer

Which of the following is not a recommended source of small business advice for persons contemplating a new business?

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

The size of the world market is:

Correct AnswerverifiedShow Answer

A National Business Incubator Association study indicates that over 80 percent of incubator graduates remain in business.

Correct AnswerverifiedShow Answer

You can negotiate a win-win situation by offering to manage an established small business.You win from the experience;the owner wins with free time.

Correct AnswerverifiedShow Answer

Only about 10% of all businesses qualify as small businesses using the definition of the Small Business Administration.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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