Question 1

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) None of the above
F) A) and D)

Question 2

Which of the following explains why individuals accept the risks of business ownership?

Accepted Answer

A)  The potential for learning how to be self-disciplined
B)  The sense of self-satisfaction and independence
C)  The challenge of seeking power
D)  The desire to work fewer hoursE) B) and C)
F) A) and D)

Question 3

Renee, a manager at a small manufacturing firm, has offered to help manage a local branch of the YMCA. Unfortunately, Renee will find that the skills acquired managing a small business will not be useful in managing a nonprofit organization.

Accepted Answer

A) True 
 B)False

Question 4

Many micropreneurs operate home-based businesses in the service industry.

Accepted Answer

A) True 
 B)False

Question 5

After personal savings, the next largest source of capital for entrepreneurs is from:

Accepted Answer

A)  large multinational banks.
B)  the Small Business Administration.
C)  state and local governments.
D)  friends and family.E) A) and B)
F) A) and C)

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Compared to employees of large businesses, small business employees are less satisfied with their work because they see their jobs as less challenging.

Accepted Answer

A) True 
 B)False

Question 9

Small business owners interested in finding out more about exporting will find that:

Accepted Answer

A)  there is very little information on exporting relevant to small businesses.
B)  the single best resource is the International Monetary Fund.
C)  the most valuable information costs more than it is worth.
D)  there is an abundance of inexpensive information from a variety of sources.E) B) and C)
F) A) and C)

Question 10

Individuals desiring to learn about small business operations are advised to learn from other entrepreneurs.

Accepted Answer

A) True 
 B)False

Question 11

Most entrepreneurs are more interested in personal achievement than in power.

Accepted Answer

A) True 
 B)False

Question 12

Enterprise zones are:

Accepted Answer

A)  government owned properties that are available for entrepreneurial ventures at a reduced cost
B)  similar to incubator facilities but strictly run by city and state governments
C)  blighted areas that contained toxic materials making them unsuitable for business operations
D)   specific locations across the U.S. where entrepreneurs can set-up shop and receive tax breaks for operating in these areasE) A) and C)
F) None of the above

Question 13

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 14

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

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Successful entrepreneurs often make use of professional managers to introduce new ideas.

Accepted Answer

A) True 
 B)False

Question 17

Carlos hopes to start his own business. He needs to avoid talking to other small business owners about his plans because they might steal his ideas.

Accepted Answer

A) True 
 B)False

Question 18

Compared to small businesses, large firms have a greater ability to provide personalized customer service.

Accepted Answer

A) True 
 B)False

Question 19

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 20

Motivated by his desire to operate his own business, Nick considers purchasing an existing business. As he carefully weighs this option, he is likely to find that:

Accepted Answer

A)  very few owners of small businesses have any interest in selling.
B)  his potential for success would greatly improve if he started his own new firm.
C)  the value of an existing business is determined by what the business owns, what it earns, and what makes it unique.
D)  any entrepreneur willing to sell his/her business is experiencing serious financial problems.E) None of the above
F) A) and D)

Exam 6: Entrepreneurship and Starting a Small Business

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

Individuals desiring to learn about small business operations are advised to learn from other entrepreneurs.

Correct AnswerverifiedShow Answer

Small business owners interested in finding out more about exporting will find that:

Correct AnswerverifiedShow Answer

After personal savings, the next largest source of capital for entrepreneurs is from:

Correct AnswerverifiedShow Answer

A business's size is measured:

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

Motivated by his desire to operate his own business, Nick considers purchasing an existing business. As he carefully weighs this option, he is likely to find that:

Correct AnswerverifiedShow Answer

Compared to small businesses, large firms have a greater ability to provide personalized customer service.

Correct AnswerverifiedShow Answer

Many micropreneurs operate home-based businesses in the service industry.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Most entrepreneurs are more interested in personal achievement than in power.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Renee, a manager at a small manufacturing firm, has offered to help manage a local branch of the YMCA. Unfortunately, Renee will find that the skills acquired managing a small business will not be useful in managing a nonprofit organization.

Correct AnswerverifiedShow Answer

Carlos hopes to start his own business. He needs to avoid talking to other small business owners about his plans because they might steal his ideas.

Correct AnswerverifiedShow Answer

Successful entrepreneurs often make use of professional managers to introduce new ideas.

Correct AnswerverifiedShow Answer

Compared to employees of large businesses, small business employees are less satisfied with their work because they see their jobs as less challenging.

Correct AnswerverifiedShow Answer

Which of the following explains why individuals accept the risks of business ownership?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Enterprise zones are:

Correct AnswerverifiedShow 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

Correct Answer
verified

Correct Answer
verified