Question 1

A new business that sets up a(n)  _____________ from the start is saving itself time and grief later

Accepted Answer

A)   angel investment network
B)   good accounting system
C)   detailed supplier network
D)   vertical marketing systemE) A) and D)
F) B) and D)

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

One way to get into business is to buy an existing company. The value of the business used to determine a fair purchase price is based on:

Accepted Answer

A)   the prospects for business competition.
B)   the current owner's retirement plan.
C)   the amount of government contracts the company has.
D)   the value of what the business owns, what it earns, and what makes it unique.E) A) and C)
F) A) and B)

Question 4

List and discuss at least three causes of small business failure.

Accepted Answer

? (Answers will vary; ho...

Question 5

Marcos is a recent college graduate. He learned in his business courses that as a potential small business owner, he should focus his sights on domestic business only.

Accepted Answer

A) True 
 B)False

Question 6

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 7

In the business world, a market consists of those people who have a willingness to buy a particular product.

Accepted Answer

A) True 
 B)False

Question 8

The Internet has slowed small businesses participation in international markets.

Accepted Answer

A) True 
 B)False

Question 9

In order to improve his chances of small business success, Demitri prepared a business plan. Most often, a positive outcome of this exercise is:

Accepted Answer

A)   the plan will meet federal reporting requirements of the Internal Revenue Service.
B)   the plan ensures financing will be available from the Small Business Administration.
C)   the plan enables Demitri to think carefully about all aspects of his business idea.
D)   the plan will protect Demitri from failure.E) None of the above
F) A) and B)

Question 10

Entrepreneurs take calculated risks.

Accepted Answer

A) True 
 B)False

Question 11

Software designed to help create business plans has proven to be of little value because it is difficult to apply it to every business situation.

Accepted Answer

A) True 
 B)False

Question 12

Management includes attention toward financing the business, hiring employees, marketing, and record keeping.

Accepted Answer

A) True 
 B)False

Question 13

As a small business owner, Tanika can't afford to provide her employees with the high wages and benefits offered by big corporations. One way to retain her employees and create a high level of motivation would be to:

Accepted Answer

A)   constantly communicate with them that "at least they have a job."
B)   adopt a policy of promoting workers who have been employed the longest.
C)   empower her employees to develop their own ideas.
D)   hire only family members, since they are more loyal.E) All of the above
F) A) and B)

Question 14

Christine recently applied for a microloan from the SBA. Although several criteria are important, the Small Business Administration'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 15

A Small Business Investment Company (SBIC)  is a(n) :

Accepted Answer

A)   agency of the federal government that loans money to high-tech firms.
B)   private investment company that is licensed by the SBA to make loans to small businesses.
C)   private firm that offers loans to small businesses in return for a share of ownership in the firm.
D)   agency set up by state governments to provide managerial advice and support to small businesses.E) A) and C)
F) A) and B)

Question 16

Justin feels that his family-run business will be more likely to avoid the problems many growing businesses have with managing employees. His attitude will likely hinder the growth of his company.

Accepted Answer

A) True 
 B)False

Question 17

Enterprise zones offer lower tax rates and government assistance to attract private business investment.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Of all nonfarm businesses in the United States, almost 97% are considered small by the Small Business Administration (SBA) standards.

Accepted Answer

A) True 
 B)False

Question 20

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) A) and B)
F) A) and C)

Exam 6: Entrepreneurship and Starting a Small Business

The Internet has slowed small businesses participation in international markets.

Correct AnswerverifiedShow Answer

List and discuss at least three causes of small business failure.

Correct Answerverified? (Answers will vary; ho...View AnswerShow Answer

Enterprise zones offer lower tax rates and government assistance to attract private business investment.

Correct AnswerverifiedShow Answer

Entrepreneurs take calculated risks.

Correct AnswerverifiedShow Answer

Software designed to help create business plans has proven to be of little value because it is difficult to apply it to every business situation.

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

Justin feels that his family-run business will be more likely to avoid the problems many growing businesses have with managing employees. His attitude will likely hinder the growth of his company.

Correct AnswerverifiedShow Answer

Management includes attention toward financing the business, hiring employees, marketing, and record keeping.

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

In order to improve his chances of small business success, Demitri prepared a business plan. Most often, a positive outcome of this exercise is:

Correct AnswerverifiedShow Answer

A Small Business Investment Company (SBIC) is a(n) :

Correct AnswerverifiedShow Answer

Marcos is a recent college graduate. He learned in his business courses that as a potential small business owner, he should focus his sights on domestic business only.

Correct AnswerverifiedShow Answer

One way to get into business is to buy an existing company. The value of the business used to determine a fair purchase price is based on:

Correct AnswerverifiedShow Answer

As a small business owner, Tanika can't afford to provide her employees with the high wages and benefits offered by big corporations. One way to retain her employees and create a high level of motivation would be to:

Correct AnswerverifiedShow Answer

A new business that sets up a(n) _____________ from the start is saving itself time and grief later

Correct AnswerverifiedShow Answer

In the business world, a market consists of those people who have a willingness to buy a particular product.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Of all nonfarm businesses in the United States, almost 97% are considered small by the Small Business Administration (SBA) standards.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
? (Answers will vary; ho...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified