Question 1

One of the greatest advantages that small businesses have over larger ones is the ability to know their customers better and to adapt quickly to the customers' needs.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following suggestions would an experienced business owner offer to help someone who is thinking about starting a business venture?

Accepted Answer

A)   Avoid the temptation of buying an existing firm. Build your own reputation and make your own mistakes.
B)   Gain experience by working for a successful businessperson.
C)   Postpone consulting with an accountant or lawyer until you can afford their services.
D)   Jump in quickly, before the market conditions change and opportunities are lost.E) A) and D)
F) C) and D)

Question 3

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) C) and D)
F) All of the above

Question 4

The Small Business Administration sponsors volunteers from industry, trade associations, and education who offer advice to small business owners. These volunteers are called:

Accepted Answer

A)   the Small Business Council of Volunteers.
B)   Partners in Service and Economic Progress.
C)   Small Business Counselors Incorporated.
D)   the Service Corps of Retired Executives.E) A) and B)
F) A) and C)

Question 5

As the owner of a small manufacturing business, Myles has an interest in exporting. However, he doesn't know how to get started. Fortunately, the government provides an abundance of information to encourage entrepreneurs like Myles.

Accepted Answer

A) True 
 B)False

Question 6

Web-based businesses avoid the risk of failure faced by traditional start-up businesses.

Accepted Answer

A) True 
 B)False

Question 7

Ben got a phone call from one of his regular customers asking if he had time to repair a couple of broken sprinkler heads on the customer's underground sprinkling system. Although it was already 6:00 p.m. and Ben had put in a full day of work, he turned his car around and headed for the customer's house. As a small business owner, Ben demonstrates:

Accepted Answer

A)   his need for additional cash flow.
B)   his ability to easily adapt and respond to his customer's needs.
C)   the fact that it is difficult to find employees willing to go the extra mile for a small business because benefits are nonexistent.
D)   that considering the fact that sprinkler heads are constantly breaking and need repair, his service is overpriced.E) None of the above
F) B) and D)

Question 8

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) A) and D)
F) A) and C)

Question 9

To be considered part of a market, an individual must:

Accepted Answer

A)   be a registered buyer.
B)   have made a purchase within the past 30 days.
C)   know the names and addresses of two or more sellers.
D)   have both a willingness to buy and the financial resources needed to buy.E) A) and C)
F) All of the above

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Jon received a letter in the mail explaining that HE COULD EARN THOUSANDS!!!! by working just a few hours from home. Most likely Jon's letter was a work-at-home scam.

Accepted Answer

A) True 
 B)False

Question 12

A detailed written statement that describes the nature of the business, the target market, the firm's competitive advantages, as well as the owner's resources and qualifications is a:

Accepted Answer

A)   business plan.
B)   entrepreneurial mission statement.
C)   profit and loss statement.
D)   professional action plan.E) All of the above
F) A) and B)

Question 13

Potential suppliers can be an excellent source of financing for a new business since lending money to a new customer may be very much in their own interest.

Accepted Answer

A) True 
 B)False

Question 14

Entrepreneurs avoid risk and place a high priority on security.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Erin developed a new type of exercise equipment she calls the Tush N' Tone. After unsuccessfully searching for potential investors, she arranged a personal loan and borrowed additional money from her parents. Her willingness to continue believing in her idea and to remain enthusiastic shows that Erin is:

Accepted Answer

A)   characteristically self-nurturing.
B)   better suited to managing a nonprofit organization.
C)   unaware of the risks she was taking.
D)   not a true entrepreneur.E) None of the above
F) B) and D)

Question 17

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) All of the above
F) None of the above

Question 18

Successful entrepreneurs accept the risk of failure.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

A firm or individual providing financial capital to small businesses in exchange for an ownership stake in the company is called a:

Accepted Answer

A)   corporate raider.
B)   takeover specialist.
C)   financial capitalist.
D)   venture capitalist.E) B) and C)
F) A) and D)

Exam 6: Entrepreneurship and Starting a Small Business

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

Correct Answer
verified

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

Correct Answer
verified

Successful entrepreneurs accept the risk of failure.

Correct Answer
verified

Correct Answer
verified

To be considered part of a market, an individual must:

Correct Answer
verified

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 Answer
verified

Jon received a letter in the mail explaining that HE COULD EARN THOUSANDS!!!! by working just a few hours from home. Most likely Jon's letter was a work-at-home scam.

Correct Answer
verified

A detailed written statement that describes the nature of the business, the target market, the firm's competitive advantages, as well as the owner's resources and qualifications is a:

Correct Answer
verified

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

Correct Answer
verified

One of the greatest advantages that small businesses have over larger ones is the ability to know their customers better and to adapt quickly to the customers' needs.

Correct Answer
verified

Web-based businesses avoid the risk of failure faced by traditional start-up businesses.

Correct Answer
verified

Correct Answer
verified

The Small Business Administration sponsors volunteers from industry, trade associations, and education who offer advice to small business owners. These volunteers are called:

Correct Answer
verified

Historically entrepreneurs in the U.S

Correct Answer
verified

Potential suppliers can be an excellent source of financing for a new business since lending money to a new customer may be very much in their own interest.

Correct Answer
verified

Which of the following suggestions would an experienced business owner offer to help someone who is thinking about starting a business venture?

Correct Answer
verified

As the owner of a small manufacturing business, Myles has an interest in exporting. However, he doesn't know how to get started. Fortunately, the government provides an abundance of information to encourage entrepreneurs like Myles.

Correct Answer
verified

Entrepreneurs avoid risk and place a high priority on security.

Correct Answer
verified

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

Correct Answer
verified

A firm or individual providing financial capital to small businesses in exchange for an ownership stake in the company is called a:

Correct Answer
verified

Exam 6: Entrepreneurship and Starting a Small Business

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Successful entrepreneurs accept the risk of failure.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

To be considered part of a market, an individual must:

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

Jon received a letter in the mail explaining that HE COULD EARN THOUSANDS!!!! by working just a few hours from home. Most likely Jon's letter was a work-at-home scam.

Correct AnswerverifiedShow Answer

A detailed written statement that describes the nature of the business, the target market, the firm's competitive advantages, as well as the owner's resources and qualifications is a:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

One of the greatest advantages that small businesses have over larger ones is the ability to know their customers better and to adapt quickly to the customers' needs.

Correct AnswerverifiedShow Answer

Web-based businesses avoid the risk of failure faced by traditional start-up businesses.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The Small Business Administration sponsors volunteers from industry, trade associations, and education who offer advice to small business owners. These volunteers are called:

Correct AnswerverifiedShow Answer

Historically entrepreneurs in the U.S

Correct AnswerverifiedShow Answer

Potential suppliers can be an excellent source of financing for a new business since lending money to a new customer may be very much in their own interest.

Correct AnswerverifiedShow Answer

Which of the following suggestions would an experienced business owner offer to help someone who is thinking about starting a business venture?

Correct AnswerverifiedShow Answer

As the owner of a small manufacturing business, Myles has an interest in exporting. However, he doesn't know how to get started. Fortunately, the government provides an abundance of information to encourage entrepreneurs like Myles.

Correct AnswerverifiedShow Answer

Entrepreneurs avoid risk and place a high priority on security.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A firm or individual providing financial capital to small businesses in exchange for an ownership stake in the company is called a:

Correct AnswerverifiedShow Answer

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verified

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