Question 1

Entrepreneurs looking for a business that gives them the best opportunity to get rich should consider starting a business in:

Accepted Answer

A)  the manufacturing sector.
B)  the food service industry.
C)  a low risk industry.
D)  the agriculture sector.E) A) and D)
F) A) and C)

Question 2

It is important for an entrepreneur to be highly energetic.

Accepted Answer

A) True 
 B)False

Question 3

________ are private individuals who invest their own money in potentially hot new companies before these firms become larger,publicly traded companies.

Accepted Answer

A)  Leveraged buyout specialists
B)  Angel investors
C)  Venture investors
D)  Corporate raider investorsE) None of the above
F) A) and D)

Question 4

Because of their superior financial resources and specialized staffs,big corporations can almost always outperform small businesses.
Small businesses have some advantages over big firms.They are often more flexible,and able to offer their customers more personalized service.

Accepted Answer

A) True 
 B)False

Question 5

The Spotlight on Small Business box featured several new entrepreneurs,some as young as 10 years old,proving "age is just a number" when it comes to having a vision for a business and bringing it to fruition.
Ideas for businesses are often conceived by young people.They act upon those ideas and develop successful businesses.

Accepted Answer

A) True 
 B)False

Question 6

Prior to creating a business plan,discussions with bankers and investors can help entrepreneurs determine the amount of financing available.
Bankers and investors will want to look at an entrepreneur's business plan in order to determine whether they are interested in providing funds.Entrepreneurs who are unable to provide bankers and potential investors with a well-developed plan will appear disorganized and unprepared.

Accepted Answer

A) True 
 B)False

Question 7

Success in running a business depends on knowing your customers,managing your employees,and keeping efficient records.

Accepted Answer

A) True 
 B)False

Question 8

Entrepreneurship involves accepting the risk of starting and running a business.

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) B) and C)
F) None of the above

Question 10

Micropreneurs are motivated by a desire to have both a satisfying family life and rewarding work.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Dr.Smiley White just graduated from dental school.He is hoping to acquire the necessary funding to start his own dental practice.One advantage of this type of business is:

Accepted Answer

A)  above average opportunity to borrow funds at a high interest rate
B)  nearly unlimited growth potential
C)  the service is individualized and not easily mass-produced
D)  very low startup costsE) B) and C)
F) C) and D)

Question 13

The Making Ethical Decisions box,"Going Down with the Ship" addresses a dilemma worthy of consideration.It describes:

Accepted Answer

A)  an unethical situation where the business owner's need for capital causes him/her to delay all payments to suppliers for 120 days,forcing several of his close business relationships,out-of-business.
B)  the slow death of a business and how important it is to delay payments,sell-off assets and do everything possible to save a failing business except dismissing employees who need their jobs for survival.
C)  ethical decisions that need to be considered when employees leave a faltering business to start their own,eventually competing against their previous employer.
D)  the unethical and disloyal decision to leave your family business and start your own,taking with you all the family business's trade secrets.E) None of the above
F) All of the above

Question 14

Commercial loan officers serve as a resource for small business owners for information regarding risk management.

Accepted Answer

A) True 
 B)False

Question 15

Luis is a partner in a firm that specializes in producing vitamins and health food products.While the business is considered small by U.S.standards,he is attempting to persuade his partner to expand internationally.Luis would list which of the following as an advantage of going international?

Accepted Answer

A)  Exporting can help sell excess inventory
B)  Marketing programs benefit from the cultural similarities in prospective markets
C)  Financing can easily be obtained to expand internationally
D)  Selling your products in other markets reduces their life cycle,making them more attractiveE) B) and D)
F) C) and D)

Question 16

According to the Small Business Administration,poor management is the cause of the majority of small business failures.

Accepted Answer

A) True 
 B)False

Question 17

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 18

Successful small business owners are:

Accepted Answer

A)  not good sources for information on starting your own business because they generally do not understand failure.
B)  valuable sources for information since you can learn from their experiences.
C)  good but risky since their keen sense of sniffing-out something with potential will tempt them to steal your ideas.
D)  valuable sources of information,but you should proceed with caution because talking with someone who could eventually be your competitor may cross the line due to federal trade commission laws.E) A) and B)
F) A) and C)

Question 19

Bing came to the U.S.on a swimming scholarship.After a few months of frustration with trying to find swim goggles like he used in his native country,he started a web site that offered specialty goggles for swimming,skiing,and snowboarding.Before launching the web site and filling orders,Bing spent a few months going to swim meets and gathering preferences about goggles from other swimmers.Bing's actions:

Accepted Answer

A)  showed that he had a ready market for this product.
B)  demonstrated that he had little experience with this product.
C)  showed that he was promoting the web site before it launched.
D)  demonstrated his need to better understand the market.E) A) and D)
F) B) and D)

Question 20

Opponents of home-based businesses successfully lobbied Congress to reduce the tax deductions available for home offices.

Accepted Answer

A) True 
 B)False

Exam 6: Entrepreneurship and Starting a Small Business

Correct Answer
verified

Because of their superior financial resources and specialized staffs,big corporations can almost always outperform small businesses. Small businesses have some advantages over big firms.They are often more flexible,and able to offer their customers more personalized service.

Correct Answer
verified

According to the Small Business Administration,poor management is the cause of the majority of small business failures.

Correct Answer
verified

Dr.Smiley White just graduated from dental school.He is hoping to acquire the necessary funding to start his own dental practice.One advantage of this type of business is:

Correct Answer
verified

Micropreneurs are motivated by a desire to have both a satisfying family life and rewarding work.

Correct Answer
verified

Entrepreneurs looking for a business that gives them the best opportunity to get rich should consider starting a business in:

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Entrepreneurship involves accepting the risk of starting and running a business.

Correct Answer
verified

Success in running a business depends on knowing your customers,managing your employees,and keeping efficient records.

Correct Answer
verified

Luis is a partner in a firm that specializes in producing vitamins and health food products.While the business is considered small by U.S.standards,he is attempting to persuade his partner to expand internationally.Luis would list which of the following as an advantage of going international?

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

Successful small business owners are:

Correct Answer
verified

________ are private individuals who invest their own money in potentially hot new companies before these firms become larger,publicly traded companies.

Correct Answer
verified

Opponents of home-based businesses successfully lobbied Congress to reduce the tax deductions available for home offices.

Correct Answer
verified

It is important for an entrepreneur to be highly energetic.

Correct Answer
verified

Commercial loan officers serve as a resource for small business owners for information regarding risk management.

Correct Answer
verified

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

The Making Ethical Decisions box,"Going Down with the Ship" addresses a dilemma worthy of consideration.It describes:

Correct Answer
verified

Exam 6: Entrepreneurship and Starting a Small Business

Correct AnswerverifiedShow Answer

Because of their superior financial resources and specialized staffs,big corporations can almost always outperform small businesses. Small businesses have some advantages over big firms.They are often more flexible,and able to offer their customers more personalized service.

Correct AnswerverifiedShow Answer

According to the Small Business Administration,poor management is the cause of the majority of small business failures.

Correct AnswerverifiedShow Answer

Dr.Smiley White just graduated from dental school.He is hoping to acquire the necessary funding to start his own dental practice.One advantage of this type of business is:

Correct AnswerverifiedShow Answer

Micropreneurs are motivated by a desire to have both a satisfying family life and rewarding work.

Correct AnswerverifiedShow Answer

Entrepreneurs looking for a business that gives them the best opportunity to get rich should consider starting a business in:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Entrepreneurship involves accepting the risk of starting and running a business.

Correct AnswerverifiedShow Answer

Success in running a business depends on knowing your customers,managing your employees,and keeping efficient records.

Correct AnswerverifiedShow Answer

Luis is a partner in a firm that specializes in producing vitamins and health food products.While the business is considered small by U.S.standards,he is attempting to persuade his partner to expand internationally.Luis would list which of the following as an advantage of going international?

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

Successful small business owners are:

Correct AnswerverifiedShow Answer

________ are private individuals who invest their own money in potentially hot new companies before these firms become larger,publicly traded companies.

Correct AnswerverifiedShow Answer

Opponents of home-based businesses successfully lobbied Congress to reduce the tax deductions available for home offices.

Correct AnswerverifiedShow Answer

It is important for an entrepreneur to be highly energetic.

Correct AnswerverifiedShow Answer

Commercial loan officers serve as a resource for small business owners for information regarding risk management.

Correct AnswerverifiedShow Answer

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

The Making Ethical Decisions box,"Going Down with the Ship" addresses a dilemma worthy of consideration.It describes:

Correct AnswerverifiedShow Answer

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