Question 1

When writing a business plan, prospective entrepreneurs should remember to omit details regarding their experience and education since investors are only interested in the proposed business.

Accepted Answer

A) True 
 B)False

Question 2

Due to the credit crunch that developed during the Great Recession, many small businesses found that ________ were more willing to lend money to smaller operations.

Accepted Answer

A)   large corporations
B)   credit card companies
C)   international banks
D)   smaller, community banksE) None of the above
F) A) and B)

Question 3

For several years, Addison has volunteered to play the piano and sing at a local nursing home. Now, Addison has decided the time was right to get into the growing eldercare market. She created Music and Memories, a nonprofit corporation that would hire local talent to perform her own music productions directed toward this market. In order to write and produce several productions each year, Addison needed start-up funds. An instructor at the local community college suggested that she begin by ________, because this effort would help introduce her idea to interested investors as well as suggest government grant applications that Addison might pursue.

Accepted Answer

A)   preparing her business plan
B)   finding talented performers
C)   writing themed performances such as a Thanksgiving concert and a Valentine's Day concert
D)   developing a list of start-up costsE) A) and B)
F) B) and D)

Question 4

Successful micropreneurs require self-discipline to separate work from family responsibilities.

Accepted Answer

A) True 
 B)False

Question 5

Elliot's long-time interest in and knowledge of computers enabled him to design a new hard drive that is better than anything else on the market. Elliot's product and business plan will likely attract several sources of financing if he is willing to give up part ownership in his company.

Accepted Answer

A) True 
 B)False

Question 6

Because of their greater financial resources and expert staffs, big corporations can almost always outperform small businesses.

Accepted Answer

A) True 
 B)False

Question 7

Small business employees

Accepted Answer

A)   usually dislike their jobs and look forward to finding employment with major corporations.
B)   find their jobs less challenging than a similar job in a large corporation.
C)   usually get paid higher wages than workers in large corporations.
D)   often find more job satisfaction than their counterparts in big business.E) All of the above
F) C) and D)

Question 8

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 businesses.E) A) and B)
F) A) and C)

Question 9

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 10

Timothy, Jude, and Eric are working in the marketing department of a multinational corporation. They each have similar backgrounds and experience and are thinking about leaving their current company to start their own business. Successful entrepreneurial teams are comprised of these types of people because similarities in knowledge and skill ensure harmony and consistency in their new business.

Accepted Answer

A) True 
 B)False

Question 11

Successful entrepreneurs are self-nurturing. This means they

Accepted Answer

A)   look to others for strength and encouragement.
B)   self-finance their business with no assistance from others.
C)   perform all business operations by themselves.
D)   believe in themselves and their ideas.E) A) and B)
F) All of the above

Question 12

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) All of the above
F) None of the above

Question 13

To be classified as a small business, a firm must have no more than 100 employees.

Accepted Answer

A) True 
 B)False

Question 14

The goal of an intrapreneur is to

Accepted Answer

A)   improve quality control in a corporation's production process.
B)   develop new products and generate new profits for the corporation.
C)   implement cost control policies for existing products.
D)   create smaller companies within larger companies.E) A) and B)
F) A) and C)

Question 15

Only about 10% of all businesses qualify as small businesses using the definition of the Small Business Administration.

Accepted Answer

A) True 
 B)False

Question 16

Historically entrepreneurs in the U.S.

Accepted Answer

A)   created wealth for themselves, but have had a minor impact on the economy as a whole.
B)   started many small firms that later became major corporations employing thousands of workers.
C)   experienced success only when they worked in partnership with the federal government.
D)   played an important role, but are less important now in creating jobs and wealth.E) B) and C)
F) A) and B)

Question 17

In order to qualify for a microloan from the SBA, an entrepreneur must have adequate collateral and a proven track record of success.

Accepted Answer

A) True 
 B)False

Question 18

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 19

The principles of management of a large business are similar to the principles of management of a small business.

Accepted Answer

A) True 
 B)False

Question 20

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 the potential for 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 C)
F) B) and C)

Exam 6: Entrepreneurship and Starting a Small Business

Elliot's long-time interest in and knowledge of computers enabled him to design a new hard drive that is better than anything else on the market. Elliot's product and business plan will likely attract several sources of financing if he is willing to give up part ownership in his company.

Correct Answer
verified

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 Answer
verified

Due to the credit crunch that developed during the Great Recession, many small businesses found that ________ were more willing to lend money to smaller operations.

Correct Answer
verified

Only about 10% of all businesses qualify as small businesses using the definition of the Small Business Administration.

Correct Answer
verified

A review of small business successes and failures indicates that the

Correct Answer
verified

Correct Answer
verified

Successful micropreneurs require self-discipline to separate work from family responsibilities.

Correct Answer
verified

To be classified as a small business, a firm must have no more than 100 employees.

Correct Answer
verified

In order to qualify for a microloan from the SBA, an entrepreneur must have adequate collateral and a proven track record of success.

Correct Answer
verified

When writing a business plan, prospective entrepreneurs should remember to omit details regarding their experience and education since investors are only interested in the proposed business.

Correct Answer
verified

The goal of an intrapreneur is to

Correct Answer
verified

Increased participation in small business exporting owes credit to ________.

Correct Answer
verified

Small business employees

Correct Answer
verified

Because of their greater financial resources and expert staffs, big corporations can almost always outperform small businesses.

Correct Answer
verified

Successful entrepreneurs are self-nurturing. This means they

Correct Answer
verified

The principles of management of a large business are similar to the principles of management of a small business.

Correct Answer
verified

Correct Answer
verified

Historically entrepreneurs in the U.S.

Correct Answer
verified

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

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

Exam 6: Entrepreneurship and Starting a Small Business

Elliot's long-time interest in and knowledge of computers enabled him to design a new hard drive that is better than anything else on the market. Elliot's product and business plan will likely attract several sources of financing if he is willing to give up part ownership in his company.

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

Due to the credit crunch that developed during the Great Recession, many small businesses found that ________ were more willing to lend money to smaller operations.

Correct AnswerverifiedShow Answer

Only about 10% of all businesses qualify as small businesses using the definition of the Small Business Administration.

Correct AnswerverifiedShow Answer

A review of small business successes and failures indicates that the

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Successful micropreneurs require self-discipline to separate work from family responsibilities.

Correct AnswerverifiedShow Answer

To be classified as a small business, a firm must have no more than 100 employees.

Correct AnswerverifiedShow Answer

In order to qualify for a microloan from the SBA, an entrepreneur must have adequate collateral and a proven track record of success.

Correct AnswerverifiedShow Answer

When writing a business plan, prospective entrepreneurs should remember to omit details regarding their experience and education since investors are only interested in the proposed business.

Correct AnswerverifiedShow Answer

The goal of an intrapreneur is to

Correct AnswerverifiedShow Answer

Increased participation in small business exporting owes credit to ________.

Correct AnswerverifiedShow Answer

Small business employees

Correct AnswerverifiedShow Answer

Because of their greater financial resources and expert staffs, big corporations can almost always outperform small businesses.

Correct AnswerverifiedShow Answer

Successful entrepreneurs are self-nurturing. This means they

Correct AnswerverifiedShow Answer

The principles of management of a large business are similar to the principles of management of a small business.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Historically entrepreneurs in the U.S.

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

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

Correct AnswerverifiedShow Answer

Correct Answer
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