Question 1

Sofia recently applied for a microloan from the Small Business Administration. Although several conditions are important, the SBA's decision to grant or deny the loan will largely depend upon

Accepted Answer

A)   her credit history and the collateral she can offer.
B)   her age, since microloans are only available to senior citizens.
C)   her previous record of business success.
D)   the soundness of her business plan, and her integrity.E) A) and D)
F) None of the above

Question 2

Skylar is an angel investor. This means that he

Accepted Answer

A)   invests his money in new businesses with potential for growth, hoping for a good return on his investment if they go public.
B)   creates business incubators for start-up web-based firms.
C)   invests in nonprofits that plan to change their status when they double in size.
D)   comes to the rescue of firms who default on their bank loans.E) A) and B)
F) None of the above

Question 3

After Abby graduated from college last year, her uncle created an accounting position for her in his business. Her older brother is in charge of purchasing inventory for the store, yet often the store runs out of popular items or is overstocked with products that must be marked down to be sold. Abby is confident that her brother is more suited for handling accounting and finance, while she has a sense of what sells and how much sells. Although she has spoken with her uncle about it a couple of times, he seems reluctant to change. As the founder of the business, he may

Accepted Answer

A)   find it difficult to remove family members from positions, even if it is not good for the business.
B)   find it difficult to retrain Abby for the job, and even though his business is losing opportunities, he will stay the course.
C)   know that profit margins have declined, but he doesn't care.
D)   have a bigger picture of things, and not feel the need to respond to a family member's request.E) A) and B)
F) A) and C)

Question 4

The position of our government is to restrict foreign entrepreneurs from operating within the U.S.

Accepted Answer

A) True 
 B)False

Question 5

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 6

Many entrepreneurs got the idea for their own business from their experience of working for others.

Accepted Answer

A) True 
 B)False

Question 7

A market consists of potential buyers of a good or service. However, for a market to exist

Accepted Answer

A)   the business requires wholesalers and retailers.
B)   one firm must dominate in sales and product development.
C)   people must have unsatisfied wants and needs as well as a willingness and ability to buy.
D)   the product must be laboratory tested and approved by the Food and Drug Administration (FD
A)  .E) B) and C)
F) A) and B)

Question 8

Entrepreneurship is another name for management.

Accepted Answer

A) True 
 B)False

Question 9

The size of the world market is about

Accepted Answer

A)   500 million
B)   7 billion
C)   7 million
D)   10 trillionE) A) and B)
F) B) and D)

Question 10

Successful entrepreneurs rely on others for direction and support.

Accepted Answer

A) True 
 B)False

Question 11

Conversations with people who start their own business often reveal that

Accepted Answer

A)   many small business owners got their entrepreneurial idea from a previous job.
B)   it is unusual for experienced corporate managers to start their own businesses.
C)   the most successful entrepreneurs often start their business ventures right after high school.
D)   most small business owners begin with significant personal wealth.E) A) and B)
F) None of the above

Question 12

Entrepreneurial teams increase the cooperation between marketing, production, and other functional areas of a business venture.

Accepted Answer

A) True 
 B)False

Question 13

A ________ refers to people with unsatisfied wants and needs who are willing and able to buy a product or service.

Accepted Answer

A)   market
B)   consumer cooperative
C)   consumer collective
D)   buyer's cooperativeE) All of the above
F) None of the above

Question 14

The entrepreneur's integrity is not relevant to bankers when determining the creditworthiness of a business loan.

Accepted Answer

A) True 
 B)False

Question 15

Entrepreneurs seeking financial support from bankers and potential investors should

Accepted Answer

A)   be vague regarding their creative business plan to avoid having their idea stolen.
B)   seek the bankers' and investors' assistance in developing their business plan.
C)   create a detailed business plan to help the bankers and investors understand why this business will succeed.
D)   ask for a relatively small amount of capital initially, postponing a full funding request until the investors better understand the business concept.E) A) and B)
F) A) and C)

Question 16

Tessa has just graduated with a business degree. Her job hunt should only focus on large corporations.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Hiring family members offers the best answer to the problem of attracting qualified employees.

Accepted Answer

A) True 
 B)False

Question 19

The Small Business Administration's microloan program awards loans to entrepreneurs based primarily on their

Accepted Answer

A)   collateral.
B)   credit history.
C)   previous business success.
D)   integrity and sound business idea.E) All of the above
F) A) and B)

Question 20

Small businesses can provide more personalized service than a large corporation to overseas customers.

Accepted Answer

A) True 
 B)False

Exam 6: Entrepreneurship and Starting a Small Business

Entrepreneurship is another name for management.

Correct Answer
verified

Conversations with people who start their own business often reveal that

Correct Answer
verified

Sofia recently applied for a microloan from the Small Business Administration. Although several conditions are important, the SBA's decision to grant or deny the loan will largely depend upon

Correct Answer
verified

The position of our government is to restrict foreign entrepreneurs from operating within the U.S.

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

The entrepreneur's integrity is not relevant to bankers when determining the creditworthiness of a business loan.

Correct Answer
verified

Many entrepreneurs got the idea for their own business from their experience of working for others.

Correct Answer
verified

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

Correct Answer
verified

Entrepreneurial teams increase the cooperation between marketing, production, and other functional areas of a business venture.

Correct Answer
verified

Hiring family members offers the best answer to the problem of attracting qualified employees.

Correct Answer
verified

Correct Answer
verified

The size of the world market is about

Correct Answer
verified

Tessa has just graduated with a business degree. Her job hunt should only focus on large corporations.

Correct Answer
verified

Successful entrepreneurs rely on others for direction and support.

Correct Answer
verified

Small businesses can provide more personalized service than a large corporation to overseas customers.

Correct Answer
verified

The Small Business Administration's microloan program awards loans to entrepreneurs based primarily on their

Correct Answer
verified

Entrepreneurs seeking financial support from bankers and potential investors should

Correct Answer
verified

Skylar is an angel investor. This means that he

Correct Answer
verified

A market consists of potential buyers of a good or service. However, for a market to exist

Correct Answer
verified

A ________ refers to people with unsatisfied wants and needs who are willing and able to buy a product or service.

Correct Answer
verified

Exam 6: Entrepreneurship and Starting a Small Business

Entrepreneurship is another name for management.

Correct AnswerverifiedShow Answer

Conversations with people who start their own business often reveal that

Correct AnswerverifiedShow Answer

Sofia recently applied for a microloan from the Small Business Administration. Although several conditions are important, the SBA's decision to grant or deny the loan will largely depend upon

Correct AnswerverifiedShow Answer

The position of our government is to restrict foreign entrepreneurs from operating within the U.S.

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

The entrepreneur's integrity is not relevant to bankers when determining the creditworthiness of a business loan.

Correct AnswerverifiedShow Answer

Many entrepreneurs got the idea for their own business from their experience of working for others.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Entrepreneurial teams increase the cooperation between marketing, production, and other functional areas of a business venture.

Correct AnswerverifiedShow Answer

Hiring family members offers the best answer to the problem of attracting qualified employees.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The size of the world market is about

Correct AnswerverifiedShow Answer

Tessa has just graduated with a business degree. Her job hunt should only focus on large corporations.

Correct AnswerverifiedShow Answer

Successful entrepreneurs rely on others for direction and support.

Correct AnswerverifiedShow Answer

Small businesses can provide more personalized service than a large corporation to overseas customers.

Correct AnswerverifiedShow Answer

The Small Business Administration's microloan program awards loans to entrepreneurs based primarily on their

Correct AnswerverifiedShow Answer

Entrepreneurs seeking financial support from bankers and potential investors should

Correct AnswerverifiedShow Answer

Skylar is an angel investor. This means that he

Correct AnswerverifiedShow Answer

A market consists of potential buyers of a good or service. However, for a market to exist

Correct AnswerverifiedShow Answer

A ________ refers to people with unsatisfied wants and needs who are willing and able to buy a product or service.

Correct AnswerverifiedShow Answer

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