Question 1

The business plan will include _____________.

Accepted Answer

A)   an analysis of the competition
B)   names of banks the owner plans to visit
C)   import/export information
D)   names of employeesE) All of the above
F) C) and D)

Question 2

Small businesses are important to the U.S.economy because:

Accepted Answer

A)   they fill-in the gaps when large businesses want to let workers go on vacation;or when large businesses want to temporarily cease production.
B)   banks and other financial services companies would not have borrowing customers,because small businesses borrow more than large businesses.
C)   they pay most of the tax revenue collected by the U.S.government.
D)   they create over 60% of new jobs each year and generate over 50% of the U.S.GDP.E) None of the above
F) B) and D)

Question 3

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) A) and D)
F) B) and D)

Question 4

Many entrepreneurs got the idea for their own business from their experience of working for others.

Accepted Answer

A) True 
 B)False

Question 5

Ming's three employees have been with her since she started Employment Recruiters,Inc. ,nearly 10 years ago.As she contemplates the staffing for her new branch office,she senses that none of these three are ready to manage the office.Faced with this difficult situation,she should:

Accepted Answer

A)   appoint one of the three anyway to show that she appreciates their loyalty and commitment.
B)   run the new branch herself and appoint one of the three to take over the original office.
C)   hire a new employee to manage the office since this could be detrimental to the business.
D)   appoint all three to the new branch and let them run it using a "team" approach.E) All of the above
F) A) and B)

Question 6

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

Question 7

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

Question 8

One reason we have seen continued growth in home-based businesses is:

Accepted Answer

A)   the location offers a more secure operational environment.
B)   affordable computer and information technology makes it easier to compete.
C)   people need something to do while they wait to return to work for a large corporation.
D)   it is less risky to start a home-based business than other types of entrepreneurial ventures.E) B) and D)
F) A) and B)

Question 9

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 10

A ________ refers to people with unsatisfied wants and needs who are willing and able to buy a product or service.

Accepted Answer

A)   market
B)   consumer cooperative
C)   consumer collective
D)   buyer's cooperativeE) C) and D)
F) All of the above

Question 11

As opposed to venture capitalists,angel investors prefer to target their investments in new firms requiring large sums of money.

Accepted Answer

A) True 
 B)False

Question 12

The Connecting with Small Business box "Business Has No Age Limit",features young people who

Accepted Answer

A)   directed inheritance money they received into profitable business ventures.
B)   turned a social passion into a business opportunity.
C)   realized the American dream at a very young age,and now run multi-million dollar companies.
D)   convinced banks to fund their business ideas.E) B) and C)
F) C) and D)

Question 13

Micropreneurs is a term used to describe entrepreneurs who focus on the continued growth of their businesses.

Accepted Answer

A) True 
 B)False

Question 14

Advancements in computer technology put home-based businesses at a disadvantage.

Accepted Answer

A) True 
 B)False

Question 15

The executive summary section of the business plan contains:

Accepted Answer

A)   computerized information that readers can access interactively.
B)   information that will capture the attention of bankers and other investors who receive many business plans every day.
C)   qualifications,experience,and education of the entrepreneur and prospective employees.
D)   a financial summary prepared by the business' accountant.E) All of the above
F) B) and C)

Question 16

Venture capitalists provide funds for small businesses as part of their philanthropy programs.

Accepted Answer

A) True 
 B)False

Question 17

According to the U.S.Department of Commerce,a ________ of small businesses export their goods.

Accepted Answer

A)   small percentage
B)   large percentage
C)   decreasing number
D)   decreasing percentageE) A) and B)
F) None of the above

Question 18

Small businesses account for over 50% of the U.S.'s gross domestic product (GDP).

Accepted Answer

A) True 
 B)False

Question 19

Entrepreneurs avoid risk and place a high priority on security.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following best describes the outlook for small businesses in international markets?

Accepted Answer

A)   The world is a larger,and potentially a more lucrative market than the U.S.domestic market.
B)   The threat of terrorist activities prevents small businesses from competing internationally.
C)   Most foreign buyers prefer to deal with large,well-known corporations rather than small businesses.
D)   Higher business costs eliminate the profit opportunities in global markets.E) None of the above
F) A) and D)

Exam 6: Entrepreneurship and Starting a Small Business

According to the U.S.Department of Commerce,a ________ of small businesses export their goods.

Correct AnswerverifiedShow Answer

Small businesses account for over 50% of the U.S.'s gross domestic product (GDP).

Correct AnswerverifiedShow Answer

The executive summary section of the business plan contains:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A ________ refers to people with unsatisfied wants and needs who are willing and able to buy a product or service.

Correct AnswerverifiedShow Answer

Advancements in computer technology put home-based businesses at a disadvantage.

Correct AnswerverifiedShow Answer

Venture capitalists provide funds for small businesses as part of their philanthropy programs.

Correct AnswerverifiedShow Answer

Which of the following best describes the outlook for small businesses in international markets?

Correct AnswerverifiedShow Answer

The business plan will include _____________.

Correct AnswerverifiedShow Answer

Many entrepreneurs got the idea for their own business from their experience of working for others.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Ming's three employees have been with her since she started Employment Recruiters,Inc. ,nearly 10 years ago.As she contemplates the staffing for her new branch office,she senses that none of these three are ready to manage the office.Faced with this difficult situation,she should:

Correct AnswerverifiedShow Answer

Micropreneurs is a term used to describe entrepreneurs who focus on the continued growth of their businesses.

Correct AnswerverifiedShow Answer

As opposed to venture capitalists,angel investors prefer to target their investments in new firms requiring large sums of money.

Correct AnswerverifiedShow Answer

Small businesses are important to the U.S.economy because:

Correct AnswerverifiedShow Answer

The Connecting with Small Business box "Business Has No Age Limit",features young people who

Correct AnswerverifiedShow Answer

Entrepreneurs avoid risk and place a high priority on security.

Correct AnswerverifiedShow Answer

Samantha 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

One reason we have seen continued growth in home-based businesses is:

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

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