Question 1

Because of the stress of being in business for yourself, it's important that entrepreneurs have people around them to help replenish their enthusiasm.

Accepted Answer

A) True 
 B)False

Question 2

Quinn has landed a management position with a pioneering new small business after many years of working as a regional manager for a nationally known nonprofit. As Quinn starts her new job, she is likely to find that

Accepted Answer

A)   due to the significant differences in large and small firms, her previous experience will be of little value in her new position.
B)   the principles of management are much the same at large and small firms.
C)   nonprofit organizations are motivated by their desire to help people and so financial management is of little concern.
D)   planning is more important to a nonprofit organization and less important to a small business so she will need to adjust the time she spends on the planning function.E) A) and D)
F) All of the above

Question 3

Large organizations encourage intrapreneurship as a strategy to improve their profitability through new products.

Accepted Answer

A) True 
 B)False

Question 4

Business incubators provide assistance to established companies attempting to generate foreign sales.

Accepted Answer

A) True 
 B)False

Question 5

Entrepreneurs looking for a business that gives them the best opportunity to get rich should consider starting a business in

Accepted Answer

A)   the manufacturing sector.
B)   the food service industry.
C)   a low-risk industry.
D)   the agriculture sector.E) A) and C)
F) A) and D)

Question 6

Victor is a dreamer rather than a doer. This will make him an ideal entrepreneur since their job is to be creative and develop new ideas that are then implemented by others.

Accepted Answer

A) True 
 B)False

Question 7

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.E) None of the above
F) All of the above

Question 8

Online businesses avoid the risk of failure faced by traditional start-up businesses.

Accepted Answer

A) True 
 B)False

Question 9

Micropreneurs are exempt from the local ordinances that restrict home-based businesses from operating in residential areas.

Accepted Answer

A) True 
 B)False

Question 10

Venture capitalists prefer investing in smaller start-up businesses in order to reduce their overall risk.

Accepted Answer

A) True 
 B)False

Question 11

Small businesses account for over 50% of the U.S.'s gross domestic product (GDP).

Accepted Answer

A) True 
 B)False

Question 12

Offering to manage an established business for a percentage of the profits plus a salary offers experience to the would-be entrepreneur and free time to the business owner.

Accepted Answer

A) True 
 B)False

Question 13

Discuss several ways the Small Business Administration assists entrepreneurs.

Accepted Answer

a. The SBA is a valuable source of infor...

Question 14

A detailed written statement that describes the nature of the business, the target market, the firm's competitive advantages, as well as the owner's resources and qualifications is a

Accepted Answer

A)   business plan.
B)   entrepreneurial mission statement.
C)   profit and loss statement.
D)   professional action plan.E) A) and D)
F) A) and C)

Question 15

Commercial loan officers serve as a resource for small business owners for information regarding risk management.

Accepted Answer

A) True 
 B)False

Question 16

The Small Business Administration defines a small business as a firm that:

Accepted Answer

A)   has fewer than 100 partners.
B)   is independently owned but not dominant in its industry.
C)   is dominant in its industry, but small in the number of workers it employs.
D)   has annual receipts of more than a specified amount depending upon the industry.E) A) and B)
F) None of the above

Question 17

Entrepreneurship involves accepting the risk of starting and running a business.

Accepted Answer

A) True 
 B)False

Question 18

From a competitive standpoint, small businesses cannot expect to successfully compete with large corporations in international markets.

Accepted Answer

A) True 
 B)False

Question 19

Most entrepreneurs are more interested in personal achievement than in power.

Accepted Answer

A) True 
 B)False

Question 20

The United States government views entrepreneurship as a result of an individual's self-motivation. The government can do very little to encourage an individual to become an entrepreneur.

Accepted Answer

A) True 
 B)False

Exam 6: Entrepreneurship and Starting a Small Business

Online businesses avoid the risk of failure faced by traditional start-up businesses.

Correct AnswerverifiedShow Answer

Most entrepreneurs are more interested in personal achievement than in power.

Correct AnswerverifiedShow Answer

Discuss several ways the Small Business Administration assists entrepreneurs.

Correct Answerverifieda. The SBA is a valuable source of infor...View AnswerShow Answer

From a competitive standpoint, small businesses cannot expect to successfully compete with large corporations in international markets.

Correct AnswerverifiedShow Answer

The United States government views entrepreneurship as a result of an individual's self-motivation. The government can do very little to encourage an individual to become an entrepreneur.

Correct AnswerverifiedShow Answer

Large organizations encourage intrapreneurship as a strategy to improve their profitability through new products.

Correct AnswerverifiedShow Answer

A detailed written statement that describes the nature of the business, the target market, the firm's competitive advantages, as well as the owner's resources and qualifications is a

Correct AnswerverifiedShow Answer

Venture capitalists prefer investing in smaller start-up businesses in order to reduce their overall risk.

Correct AnswerverifiedShow Answer

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 ________.

Correct AnswerverifiedShow Answer

Small businesses account for over 50% of the U.S.'s gross domestic product (GDP).

Correct AnswerverifiedShow Answer

Offering to manage an established business for a percentage of the profits plus a salary offers experience to the would-be entrepreneur and free time to the business owner.

Correct AnswerverifiedShow Answer

Quinn has landed a management position with a pioneering new small business after many years of working as a regional manager for a nationally known nonprofit. As Quinn starts her new job, she is likely to find that

Correct AnswerverifiedShow Answer

The Small Business Administration defines a small business as a firm that:

Correct AnswerverifiedShow Answer

Micropreneurs are exempt from the local ordinances that restrict home-based businesses from operating in residential areas.

Correct AnswerverifiedShow Answer

Business incubators provide assistance to established companies attempting to generate foreign sales.

Correct AnswerverifiedShow Answer

Entrepreneurs looking for a business that gives them the best opportunity to get rich should consider starting a business in

Correct AnswerverifiedShow Answer

Entrepreneurship involves accepting the risk of starting and running a business.

Correct AnswerverifiedShow Answer

Victor is a dreamer rather than a doer. This will make him an ideal entrepreneur since their job is to be creative and develop new ideas that are then implemented by others.

Correct AnswerverifiedShow Answer

Commercial loan officers serve as a resource for small business owners for information regarding risk management.

Correct AnswerverifiedShow Answer

Because of the stress of being in business for yourself, it's important that entrepreneurs have people around them to help replenish their enthusiasm.

Correct AnswerverifiedShow Answer

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a. The SBA is a valuable source of infor...
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