Question 1

Small businesses can often provide more personalized customer service than bigger rivals.

Accepted Answer

A) True 
 B)False

Question 2

Entrepreneurship is another name for management.

Accepted Answer

A) True 
 B)False

Question 3

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) None of the above
F) All of the above

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

State and local governments often act as venture capitalists.

Accepted Answer

A) True 
 B)False

Question 6

A business's size is measured:

Accepted Answer

A)   in relation to the number of competitors in its industry.
B)   in relation to other firms in its industry.
C)   in relation to the number of dominant competitors in its sector.
D)   as small, if it participates in the services sector.E) B) and D)
F) B) and C)

Question 7

A successful web-based strategy that helps a business spread the word about its website and products is called ______________

Accepted Answer

A)   wildfire marketing.
B)   "it's all about the buzz."
C)   social marketing.
D)   affiliate marketing.E) B) and C)
F) None of the above

Question 8

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

Question 9

Venture capitalists provide funds for small businesses as part of their philanthropy programs.

Accepted Answer

A) True 
 B)False

Question 10

Greg benefited from his experience working for an established private company that provided innovative lighting for large music venues. Although confident that he could start his own lighting business, he had limited capital to buy the necessary equipment needed to successfully compete with established companies. Which of the following strategies would best help Greg achieve his goal of business ownership?

Accepted Answer

A)   Begin by offering to take over management of his employer's business, allowing the owner to enjoy some leisure time
B)   Consider working for a major corporation, live modestly, and save until he has sufficient funds to start his business
C)   Enroll in the closest university and apply for student loans
D)   Open his business and trust that his work experience will bring him success even with insufficient capitalE) A) and D)
F) None of the above

Question 11

The Internet provides a resource for entrepreneurs for information regarding the steps needed to take their business online.

Accepted Answer

A) True 
 B)False

Question 12

Most business opportunities offer entrepreneurs high levels of security and profits.

Accepted Answer

A) True 
 B)False

Question 13

Enterprise zones and investor visas are examples of:

Accepted Answer

A)   government policies that favor large corporations rather than small businesses.
B)   government programs that encourage economic growth through entrepreneurship.
C)   government policies designed to encourage intrapreneurs.
D)   examples of private initiatives to reduce the government's role in the economy.E) None of the above
F) A) and C)

Question 14

An intrapreneur is the creative person who starts and manages a nonprofit organization.

Accepted Answer

A) True 
 B)False

Question 15

Entrepreneurial spirit is unique to a small business environment.

Accepted Answer

A) True 
 B)False

Question 16

Increased participation in small business exporting owes credit to _________

Accepted Answer

A)   political constituents who have made inroads abroad
B)   large events such as the Olympics that have brought attention to the potential in world markets
C)   technological advances such as the Internet and PayPal for safely fulfilling orders
D)   partnerships that small businesses have formed with large businessesE) B) and D)
F) None of the above

Question 17

Large multinational firms dominate the international market, leaving few opportunities for small businesses.

Accepted Answer

A) True 
 B)False

Question 18

One advantage enjoyed by home-based businesses is the relative ease in attracting new customers.

Accepted Answer

A) True 
 B)False

Question 19

A review of small business successes and failures indicates that the:

Accepted Answer

A)   businesses that are easiest to start offer the greatest potential for long-term growth and profits.
B)   restaurant industry offers the least risk for entrepreneurs.
C)   businesses with potential of high profit levels tend to be difficult to start and hard to keep going.
D)   reason the service sector is rapidly growing is that these firms are easy to start and keep going, and offer high levels of security and growth potential.E) A) and B)
F) None of the above

Question 20

Economist Bruce Kirchhoff contends that business failures are much lower than traditionally reported.

Accepted Answer

A) True 
 B)False

Exam 6: Entrepreneurship and Starting a Small Business

Economist Bruce Kirchhoff contends that business failures are much lower than traditionally reported.

Correct Answer
verified

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 Answer
verified

Large multinational firms dominate the international market, leaving few opportunities for small businesses.

Correct Answer
verified

A review of small business successes and failures indicates that the:

Correct Answer
verified

Venture capitalists provide funds for small businesses as part of their philanthropy programs.

Correct Answer
verified

Entrepreneurial spirit is unique to a small business environment.

Correct Answer
verified

A business's size is measured:

Correct Answer
verified

The Internet provides a resource for entrepreneurs for information regarding the steps needed to take their business online.

Correct Answer
verified

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

Correct Answer
verified

Increased participation in small business exporting owes credit to _________

Correct Answer
verified

Enterprise zones and investor visas are examples of:

Correct Answer
verified

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

Correct Answer
verified

An intrapreneur is the creative person who starts and manages a nonprofit organization.

Correct Answer
verified

Correct Answer
verified

Most business opportunities offer entrepreneurs high levels of security and profits.

Correct Answer
verified

Entrepreneurship is another name for management.

Correct Answer
verified

Small businesses can often provide more personalized customer service than bigger rivals.

Correct Answer
verified

State and local governments often act as venture capitalists.

Correct Answer
verified

One advantage enjoyed by home-based businesses is the relative ease in attracting new customers.

Correct Answer
verified

A successful web-based strategy that helps a business spread the word about its website and products is called ______________

Correct Answer
verified

Exam 6: Entrepreneurship and Starting a Small Business

Economist Bruce Kirchhoff contends that business failures are much lower than traditionally reported.

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 multinational firms dominate the international market, leaving few opportunities for small businesses.

Correct AnswerverifiedShow Answer

A review of small business successes and failures indicates that the:

Correct AnswerverifiedShow Answer

Venture capitalists provide funds for small businesses as part of their philanthropy programs.

Correct AnswerverifiedShow Answer

Entrepreneurial spirit is unique to a small business environment.

Correct AnswerverifiedShow Answer

A business's size is measured:

Correct AnswerverifiedShow Answer

The Internet provides a resource for entrepreneurs for information regarding the steps needed to take their business online.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Increased participation in small business exporting owes credit to _________

Correct AnswerverifiedShow Answer

Enterprise zones and investor visas are examples of:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An intrapreneur is the creative person who starts and manages a nonprofit organization.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Most business opportunities offer entrepreneurs high levels of security and profits.

Correct AnswerverifiedShow Answer

Entrepreneurship is another name for management.

Correct AnswerverifiedShow Answer

Small businesses can often provide more personalized customer service than bigger rivals.

Correct AnswerverifiedShow Answer

State and local governments often act as venture capitalists.

Correct AnswerverifiedShow Answer

One advantage enjoyed by home-based businesses is the relative ease in attracting new customers.

Correct AnswerverifiedShow Answer

A successful web-based strategy that helps a business spread the word about its website and products is called ______________

Correct AnswerverifiedShow Answer

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