Question 1

Antoine is considering marketing his bicycles in Brazil. If he enters the Brazilian market, he is likely to learn that .

Accepted Answer

A)  some cultures like dealing with individuals from smaller companies rather than large companies
B)  he will not be able to keep up with demand
C)  most foreign cultures prefer large company relationships to small company relationships
D)  there is strong resistance of Brazilian firms with respect to American productsE) A) and B)
F) B) and D)

Question 2

The Small Business Administration sponsors volunteers from industry, trade associations, and education who offer advice to small business owners. These volunteers are called:

Accepted Answer

A)  the Small Business Council of Volunteers.
B)  Partners in Service and Economic Progress.
C)  Small Business Counselors Incorporated.
D)  the Service Corps of Retired Executives.E) A) and B)
F) B) and C)

Question 3

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 4

According to SBA guidelines, a manufacturing firm with 1,000 employees:

Accepted Answer

A)  would be classified as a large firm in the industrial sector.
B)  may be classified as a small business depending upon the size of other firms in the industry.
C)  is too small to achieve the efficiencies of large scale production.
D)  is classified as an S corporation.E) A) and D)
F) A) and C)

Question 5

One of the hurdles small businesses face when deciding to export is:

Accepted Answer

A)  financing is often difficult to find.
B)  overseas buyers prefer dealing with large corporations.
C)  smaller companies must wait in line after large companies to qualify for tariffs.
D)  American products are perceived as inferior.E) A) and C)
F) A) and D)

Question 6

Which of the following is not a reason stated for small business failure?

Accepted Answer

A)  Managerial incompetence
B)  Inadequate financial planning
C)  Buying too little on credit and not being lenient enough with your credit paying customers
D)  Borrowing money without a plan of how and when you will repay the debtE) A) and B)
F) A) and C)

Question 7

Small businesses lack the resources to compete directly with big businesses.

Accepted Answer

A) True 
 B)False

Question 8

Corporate management has been the training ground for many new entrepreneurs.

Accepted Answer

A) True 
 B)False

Question 9

For prospective entrepreneurs, enrolling in an introduction to business or small business management course offered through their community college:

Accepted Answer

A)  is likely to be wasted time since college courses tend to be too theoretical.
B)  can be helpful by offering them an opportunity to meet experienced small business owners.
C)  serves as supplementary information, only after starting their business venture.
D)  seldom provides you with information to help make small business decisions.E) None of the above
F) A) and B)

Question 10

The SBA may guarantee loans made by a financial institution and repay them if the borrowers stop making payments.

Accepted Answer

A) True 
 B)False

Question 11

One of the greatest advantages that small businesses have over larger ones is the ability to know their customers better and to adapt quickly to the customers' needs.

Accepted Answer

A) True 
 B)False

Question 12

Enterprise zones are specific geographic areas that:

Accepted Answer

A)  the government has set aside for major corporations that promise to spend at least $10 million to create new jobs.
B)  attract business investment by offering lower taxes and government support for development.
C)  the government has recognized as having the fastest growth rates in the country.
D)  are characterized by government ownership of small businesses.E) B) and D)
F) A) and B)

Question 13

Small Business Administration loans help firms finance their domestic operations. These funds however, cannot be used to finance exports since the money is provided by U.S. taxpayers.

Accepted Answer

A) True 
 B)False

Question 14

People who are 16 to 34 years old are not attracted to starting their own business.

Accepted Answer

A) True 
 B)False

Question 15

Creative people working as entrepreneurs within a large organization are called intrapreneurs.

Accepted Answer

A) True 
 B)False

Question 16

Mini-Case
Peppy Roaney believes that pizza is a much more versatile dish than most people realize. As the national marketing manager for Pizza Guys, he observed how consumers were delighted with barbecue pizza, Hawaiian pizza, Mexican pizza and other unique combinations. His suggestions for other unusual pizzas, however, were met with a negative response by his superiors. Even some of his colleagues laughed at his ideas. Peppy's confidence in his ability to understand the market has led him to focus on planning a business of his own. Peppy realizes that he will take a risk when he leaves his job with Pizza Guys and embarks upon a new venture: Peppy's Pizzazzeria. Peppy is excited about the potential of profitably catering to the unmet desires of pizza consumers.
-Peppy has inquired 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.E) A) and B)
F) A) and C)

Question 17

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

Accepted Answer

A)  macropreneurs
B)  intrapreneurs
C)  micropreneurs
D)  home workersE) A) and D)
F) None of the above

Question 18

A(n)  is a valuable source of information regarding techniques to reduce a firm's exposure to risk.

Accepted Answer

A)  insurance agent
B)  accountant
C)  liability assessor
D)  union business agentE) B) and C)
F) None of the above

Question 19

Which of the following best describes the outlook for small businesses in international markets?

Accepted Answer

A)  the world is a larger, and potentially a more lucrative market than the U.S. domestic market
B)  the threat of terrorist activities prevents small businesses from competing internationally
C)  most foreign buyers prefer to deal with large, well-known corporations rather than small businesses
D)  higher business costs eliminate the profit opportunities in global marketsE) None of the above
F) A) and B)

Question 20

One reason we have seen continued growth in home-based businesses is:

Accepted Answer

A)  the location offers a more secure operational environment.
B)  affordable computer and information technology makes it easier to compete.
C)  people need something to do while they wait to return to work for a large corporation.
D)  it is less risky to start a home-based business than other types of entrepreneurial ventures.E) A) and C)
F) All of the above

Exam 6: Entrepreneurship and Starting a Small Business

Small Business Administration loans help firms finance their domestic operations. These funds however, cannot be used to finance exports since the money is provided by U.S. taxpayers.

Correct Answer
verified

Antoine is considering marketing his bicycles in Brazil. If he enters the Brazilian market, he is likely to learn that .

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

Creative people working as entrepreneurs within a large organization are called intrapreneurs.

Correct Answer
verified

The SBA may guarantee loans made by a financial institution and repay them if the borrowers stop making payments.

Correct Answer
verified

Which of the following best describes the outlook for small businesses in international markets?

Correct Answer
verified

The Small Business Administration sponsors volunteers from industry, trade associations, and education who offer advice to small business owners. These volunteers are called:

Correct Answer
verified

For prospective entrepreneurs, enrolling in an introduction to business or small business management course offered through their community college:

Correct Answer
verified

One of the hurdles small businesses face when deciding to export is:

Correct Answer
verified

Small businesses lack the resources to compete directly with big businesses.

Correct Answer
verified

A(n) is a valuable source of information regarding techniques to reduce a firm's exposure to risk.

Correct Answer
verified

According to SBA guidelines, a manufacturing firm with 1,000 employees:

Correct Answer
verified

People who are 16 to 34 years old are not attracted to starting their own business.

Correct Answer
verified

Enterprise zones are specific geographic areas that:

Correct Answer
verified

One of the greatest advantages that small businesses have over larger ones is the ability to know their customers better and to adapt quickly to the customers' needs.

Correct Answer
verified

One reason we have seen continued growth in home-based businesses is:

Correct Answer
verified

Correct Answer
verified

Which of the following is not a reason stated for small business failure?

Correct Answer
verified

Corporate management has been the training ground for many new entrepreneurs.

Correct Answer
verified

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

Correct Answer
verified

Exam 6: Entrepreneurship and Starting a Small Business

Small Business Administration loans help firms finance their domestic operations. These funds however, cannot be used to finance exports since the money is provided by U.S. taxpayers.

Correct AnswerverifiedShow Answer

Antoine is considering marketing his bicycles in Brazil. If he enters the Brazilian market, he is likely to learn that .

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

Creative people working as entrepreneurs within a large organization are called intrapreneurs.

Correct AnswerverifiedShow Answer

The SBA may guarantee loans made by a financial institution and repay them if the borrowers stop making payments.

Correct AnswerverifiedShow Answer

Which of the following best describes the outlook for small businesses in international markets?

Correct AnswerverifiedShow Answer

The Small Business Administration sponsors volunteers from industry, trade associations, and education who offer advice to small business owners. These volunteers are called:

Correct AnswerverifiedShow Answer

For prospective entrepreneurs, enrolling in an introduction to business or small business management course offered through their community college:

Correct AnswerverifiedShow Answer

One of the hurdles small businesses face when deciding to export is:

Correct AnswerverifiedShow Answer

Small businesses lack the resources to compete directly with big businesses.

Correct AnswerverifiedShow Answer

A(n) is a valuable source of information regarding techniques to reduce a firm's exposure to risk.

Correct AnswerverifiedShow Answer

According to SBA guidelines, a manufacturing firm with 1,000 employees:

Correct AnswerverifiedShow Answer

People who are 16 to 34 years old are not attracted to starting their own business.

Correct AnswerverifiedShow Answer

Enterprise zones are specific geographic areas that:

Correct AnswerverifiedShow Answer

One of the greatest advantages that small businesses have over larger ones is the ability to know their customers better and to adapt quickly to the customers' needs.

Correct AnswerverifiedShow Answer

One reason we have seen continued growth in home-based businesses is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is not a reason stated for small business failure?

Correct AnswerverifiedShow Answer

Corporate management has been the training ground for many new entrepreneurs.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
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