Question 1

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

Question 2

Which of the following sources of investment is the LEAST likely type available to entrepreneurs?

Accepted Answer

A)   Angel investors
B)   Small Business Administration loans
C)   Venture capitalists
D)   Family and friendsE) C) and D)
F) All of the above

Question 3

A good business plan describes the nature of the proposed business, the target market, the competitive advantages, and the qualifications of the owners.

Accepted Answer

A) True 
 B)False

Question 4

Mini-Case
Pepe Pieman believes that pizza is a much more versatile meal than most people realize. As the national marketing manager for Pizza Pals, he has watched how consumers ate up barbecue pizza, Hawaiian pizza, Mexican pizza, and other new and unique combinations. His superiors, however, met his suggestions for other unusual pizzas with a negative response. Even some of his teammates laughed at his ideas. Pepe's confidence in his ability to understand the market has led him to focus on planning a business of his own. Pepe realizes that he will take a risk when he leaves his job with Pizza Pals and sets off on a new endeavor: Pepe's Pizzazzeria. Pepe is excited about the potential of profitably catering to the unmet desires of pizza consumers.
-Pepe remains confident and enthusiastic even though his colleagues have poked fun at his ideas. This shows that Pepe is

Accepted Answer

A)   self-disciplined.
B)   self-nurturing.
C)   self-generating.
D)   auto-inspirational.E) None of the above
F) B) and C)

Question 5

Using the analogy of boulders vs. sand for filling a hole, the textbook points out that

Accepted Answer

A)   small businesses are employing a record number of employees because they have to work twice as hard at producing the same amount of output as a large competitor.
B)   small businesses can serve niche markets that larger firms do not serve well.
C)   the sand represents the small businesses that start and fail each year, while the boulders represent the large companies whose resources permit them to stay the course.
D)   large companies serve market niches so much better than small companies.E) B) and C)
F) None of the above

Question 6

If you were to begin gathering information on a particular type of business, it is doubtful that a community college class would benefit your search because the information you would gain is too generic in nature.

Accepted Answer

A) True 
 B)False

Question 7

The best way to learn about small business is to "bite the bullet" and start your own.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements is characteristic of entrepreneurs?

Accepted Answer

A)   They like certainty.
B)   They have the ability to visualize a clear path.
C)   They look at problems and see opportunities.
D)   They prefer to be inventive rather than worry about whether the invention solves a customer need.E) B) and C)
F) All of the above

Question 9

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 D)
F) A) and C)

Question 10

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

Question 11

The U.S. government offers investor visas to attract more entrepreneurs.

Accepted Answer

A) True 
 B)False

Question 12

Small Business Investment Companies (SBICs) are privately owned companies licensed by the Small Business Administration to lend money to small businesses.

Accepted Answer

A) True 
 B)False

Question 13

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 14

Because college students realize the importance of nursing homes for our aging population, students comprise an attractive market for nursing home insurance policies.

Accepted Answer

A) True 
 B)False

Question 15

Small businesses have not significantly participated in online sales.

Accepted Answer

A) True 
 B)False

Question 16

By passing the Immigration Act of 1990, the U.S. government acted to encourage entrepreneurs to immigrate to the United States.

Accepted Answer

A) True 
 B)False

Question 17

Small businesses create about ________ percent of the new jobs in the United States.

Accepted Answer

A)   25
B)   45
C)   65
D)   85E) A) and B)
F) C) and D)

Question 18

Luxe Labels, LLC, exports specialty printing equipment for the custom labeling, flexible packaging, and carton industry. Thanks to increased support from ________, this company's sales to Brazilian companies and other global opportunities have significantly increased.

Accepted Answer

A)   its newly revised website
B)   Department of Commerce's Bureau of Industry and Security
C)   the FDA
D)   local politiciansE) B) and D)
F) A) and B)

Question 19

The Making Ethical Decisions box "Should You Stay or Should You Go?" 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) A) and C)
F) B) and C)

Question 20

Some people argue that small business failures are

Accepted Answer

A)   lower than traditionally reported.
B)   understated to keep small business creation enthusiasm.
C)   accurate and alarming.
D)   inconclusive.E) C) and D)
F) B) and C)

Exam 6: Entrepreneurship and Starting a Small Business

Small businesses have not significantly participated in online sales.

Correct Answer
verified

Some people argue that small business failures are

Correct Answer
verified

The best way to learn about small business is to "bite the bullet" and start your own.

Correct Answer
verified

Using the analogy of boulders vs. sand for filling a hole, the textbook points out that

Correct Answer
verified

Small Business Investment Companies (SBICs) are privately owned companies licensed by the Small Business Administration to lend money to small businesses.

Correct Answer
verified

Small businesses create about ________ percent of the new jobs in the United States.

Correct Answer
verified

Increased participation in small business exporting owes credit to ________.

Correct Answer
verified

Correct Answer
verified

A good business plan describes the nature of the proposed business, the target market, the competitive advantages, and the qualifications of the owners.

Correct Answer
verified

Small business employees

Correct Answer
verified

Because college students realize the importance of nursing homes for our aging population, students comprise an attractive market for nursing home insurance policies.

Correct Answer
verified

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

Correct Answer
verified

If you were to begin gathering information on a particular type of business, it is doubtful that a community college class would benefit your search because the information you would gain is too generic in nature.

Correct Answer
verified

The Making Ethical Decisions box "Should You Stay or Should You Go?" addresses a dilemma worthy of consideration. It describes

Correct Answer
verified

Which of the following statements is characteristic of entrepreneurs?

Correct Answer
verified

By passing the Immigration Act of 1990, the U.S. government acted to encourage entrepreneurs to immigrate to the United States.

Correct Answer
verified

Which of the following sources of investment is the LEAST likely type available to entrepreneurs?

Correct Answer
verified

Correct Answer
verified

Luxe Labels, LLC, exports specialty printing equipment for the custom labeling, flexible packaging, and carton industry. Thanks to increased support from ________, this company's sales to Brazilian companies and other global opportunities have significantly increased.

Correct Answer
verified

The U.S. government offers investor visas to attract more entrepreneurs.

Correct Answer
verified

Exam 6: Entrepreneurship and Starting a Small Business

Small businesses have not significantly participated in online sales.

Correct AnswerverifiedShow Answer

Some people argue that small business failures are

Correct AnswerverifiedShow Answer

The best way to learn about small business is to "bite the bullet" and start your own.

Correct AnswerverifiedShow Answer

Using the analogy of boulders vs. sand for filling a hole, the textbook points out that

Correct AnswerverifiedShow Answer

Small Business Investment Companies (SBICs) are privately owned companies licensed by the Small Business Administration to lend money to small businesses.

Correct AnswerverifiedShow Answer

Small businesses create about ________ percent of the new jobs in the United States.

Correct AnswerverifiedShow Answer

Increased participation in small business exporting owes credit to ________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A good business plan describes the nature of the proposed business, the target market, the competitive advantages, and the qualifications of the owners.

Correct AnswerverifiedShow Answer

Small business employees

Correct AnswerverifiedShow Answer

Because college students realize the importance of nursing homes for our aging population, students comprise an attractive market for nursing home insurance policies.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If you were to begin gathering information on a particular type of business, it is doubtful that a community college class would benefit your search because the information you would gain is too generic in nature.

Correct AnswerverifiedShow Answer

The Making Ethical Decisions box "Should You Stay or Should You Go?" addresses a dilemma worthy of consideration. It describes

Correct AnswerverifiedShow Answer

Which of the following statements is characteristic of entrepreneurs?

Correct AnswerverifiedShow Answer

By passing the Immigration Act of 1990, the U.S. government acted to encourage entrepreneurs to immigrate to the United States.

Correct AnswerverifiedShow Answer

Which of the following sources of investment is the LEAST likely type available to entrepreneurs?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Luxe Labels, LLC, exports specialty printing equipment for the custom labeling, flexible packaging, and carton industry. Thanks to increased support from ________, this company's sales to Brazilian companies and other global opportunities have significantly increased.

Correct AnswerverifiedShow Answer

The U.S. government offers investor visas to attract more entrepreneurs.

Correct AnswerverifiedShow Answer

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