Question 1

Which of the following statements accurately depicts an advantage that small business has over big business?

Accepted Answer

A)   If the small business owner can project his business as being big, if not very similar to big businesses that sell in the same industry, then he will realize a significant advantage.
B)   The size of the business (small being better in this case)  is an important consideration in the management of legal, payroll, and tax concerns.
C)   A small business can maneuver and change quicker than most large businesses can. It can react to market conditions and customer concerns much faster.
D)   The slower pace of small businesses translates into better quality for its customers.E) A) and D)
F) A) and C)

Question 2

Commercial loan officers and insurance agents offer expert assistance that can be valuable to small business owners.

Accepted Answer

A) True 
 B)False

Question 3

Anna recently left a large insurance firm and opened a home-based business preparing medical transcriptions for doctors. Based on recent statistics, she can expect:

Accepted Answer

A)   a negative reaction from friends and family who wonder when she will get a real job.
B)   the emergence of affordable technology will make it less challenging for her to compete with larger firms offering the same service.
C)   the government will discourage her attempts to create a home-based business in the hopes that she will opt for locating in an enterprise zone.
D)   to find security, routine and a paycheck from her new enterprise.E) C) and D)
F) None of the above

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

According to economist Bruce Kirchhoff, 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) B) and C)
F) A) and D)

Question 6

The Spotlight on Small Business box is testimonial to the fact that entrepreneurs are problem solvers.

Accepted Answer

A) True 
 B)False

Question 7

Mini-Case
Peppy Roaney believes that pizza is a much more versatile dish than most people realize. As the national marketing manager for Pizza Guys, he observed how consumers were delighted with barbecue pizza, Hawaiian pizza, Mexican pizza and other unique combinations. His suggestions for other unusual pizzas, however, were met with a negative response by his superiors. Even some of his colleagues laughed at his ideas. Peppy's confidence in his ability to understand the market has led him to focus on planning a business of his own. Peppy realizes that he will take a risk when he leaves his job with Pizza Guys and embarks upon a new venture: Peppy's Pizzazzeria. Peppy is excited about the potential of profitably catering to the unmet desires of pizza consumers.
-Due to the fact that Peppy has worked in the field of marketing for a large corporation:

Accepted Answer

A)   there is no need to consider an entrepreneurial team for start-up due to the fact that all other management functions are served by marketing.
B)   he can skip any marketing research steps that the SBA recommends.
C)   he knows that the type of business he wants to start may be difficult to develop, but it has a tremendous amount of security due to its promise of long-term survival.
D)   he plans to put together an entrepreneurial team of experts that will complement his expertise.E) B) and D)
F) C) and D)

Question 8

Creative people working as entrepreneurs within a large organization are called intrapreneurs.

Accepted Answer

A) True 
 B)False

Question 9

Entrepreneurs seeking financial support from bankers and potential investors should:

Accepted Answer

A)   be vague regarding their creative business plan to avoid having their idea stolen.
B)   seek the bankers' and investors' assistance in developing their business plan.
C)   create a detailed business plan to help the bankers and investors understand why this business will succeed.
D)   ask for a relatively small amount of capital initially, postponing a full funding request until the investors better understand the business concept.E) A) and C)
F) B) and C)

Question 10

Austin's interest in computers helped fuel his design of a new hard drive that is far superior to anything on the market. Austin's product and business plan will likely attract several sources of financing if he is willing to give up part ownership in his company.

Accepted Answer

A) True 
 B)False

Question 11

Conversations with people who start their own business often reveal that:

Accepted Answer

A)   many small business owners got their entrepreneurial idea from a previous job.
B)   it is unusual for experienced corporate managers to start their own businesses.
C)   the most successful entrepreneurs often start their business ventures right after high school.
D)   most small business owners begin with significant personal wealth.E) B) and C)
F) C) and D)

Question 12

Business incubators are usually government-funded facilities intended to:

Accepted Answer

A)   provide health care benefits for small business owners and their families.
B)   offer start-up firms low-cost office space and basic business services.
C)   help rebuild the nation's infrastructure.
D)   assist foreign investors in identifying business opportunities in the U.S.E) A) and D)
F) B) and C)

Question 13

Enterprise zones are specific geographic areas that:

Accepted Answer

A)   the government has set aside for major corporations that promise to spend at least $10 million to create new jobs.
B)   attract business investment by offering lower taxes and government support for development.
C)   the government has recognized as having the fastest growth rates in the country.
D)   are characterized by government ownership of small businesses.E) All of the above
F) A) and D)

Question 14

Prospective entrepreneurs turned down by private lenders have little hope of getting financial help from the Small Business Administration, since the SBA's standards are even tougher than those of private lenders.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following U.S. issues does entrepreneurship most directly affect?

Accepted Answer

A)   The political process
B)   The ability to create jobs for others
C)   Contributions of money to organizations that help people in need
D)   The ability to influence national macroeconomics policesE) A) and D)
F) B) and C)

Question 16

Which of the following employment statistics about small businesses is true?

Accepted Answer

A)   Small businesses create about 15% of all new jobs in the U.S.
B)   The number of women owning small businesses has remained constant.
C)   A great majority of American workers find their first jobs with a small business.
D)   Growth of minority-owned businesses in the U.S. is declining.E) B) and C)
F) All of the above

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Angel investors are the government agencies that invest money in new companies before they go public.

Accepted Answer

A) True 
 B)False

Question 19

According to the Small Business Administration's definition, small businesses are independently owned and operated.

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 6: Entrepreneurship and Starting a Small Business

Which of the following statements accurately depicts an advantage that small business has over big business?

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

Enterprise zones are specific geographic areas that:

Correct Answer
verified

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

Correct Answer
verified

According to economist Bruce Kirchhoff, small business failures are:

Correct Answer
verified

Angel investors are the government agencies that invest money in new companies before they go public.

Correct Answer
verified

Prospective entrepreneurs turned down by private lenders have little hope of getting financial help from the Small Business Administration, since the SBA's standards are even tougher than those of private lenders.

Correct Answer
verified

Which of the following U.S. issues does entrepreneurship most directly affect?

Correct Answer
verified

Business incubators are usually government-funded facilities intended to:

Correct Answer
verified

Austin's interest in computers helped fuel his design of a new hard drive that is far superior to anything on the market. Austin's product and business plan will likely attract several sources of financing if he is willing to give up part ownership in his company.

Correct Answer
verified

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

Correct Answer
verified

Conversations with people who start their own business often reveal that:

Correct Answer
verified

Creative people working as entrepreneurs within a large organization are called intrapreneurs.

Correct Answer
verified

According to the Small Business Administration's definition, small businesses are independently owned and operated.

Correct Answer
verified

Commercial loan officers and insurance agents offer expert assistance that can be valuable to small business owners.

Correct Answer
verified

Which of the following employment statistics about small businesses is true?

Correct Answer
verified

Entrepreneurs seeking financial support from bankers and potential investors should:

Correct Answer
verified

Anna recently left a large insurance firm and opened a home-based business preparing medical transcriptions for doctors. Based on recent statistics, she can expect:

Correct Answer
verified

Correct Answer
verified

The Spotlight on Small Business box is testimonial to the fact that entrepreneurs are problem solvers.

Correct Answer
verified

Exam 6: Entrepreneurship and Starting a Small Business

Which of the following statements accurately depicts an advantage that small business has over big business?

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

Enterprise zones are specific geographic areas that:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

According to economist Bruce Kirchhoff, small business failures are:

Correct AnswerverifiedShow Answer

Angel investors are the government agencies that invest money in new companies before they go public.

Correct AnswerverifiedShow Answer

Prospective entrepreneurs turned down by private lenders have little hope of getting financial help from the Small Business Administration, since the SBA's standards are even tougher than those of private lenders.

Correct AnswerverifiedShow Answer

Which of the following U.S. issues does entrepreneurship most directly affect?

Correct AnswerverifiedShow Answer

Business incubators are usually government-funded facilities intended to:

Correct AnswerverifiedShow Answer

Austin's interest in computers helped fuel his design of a new hard drive that is far superior to anything on the market. Austin's product and business plan will likely attract several sources of financing if he is willing to give up part ownership in his company.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Conversations with people who start their own business often reveal that:

Correct AnswerverifiedShow Answer

Creative people working as entrepreneurs within a large organization are called intrapreneurs.

Correct AnswerverifiedShow Answer

According to the Small Business Administration's definition, small businesses are independently owned and operated.

Correct AnswerverifiedShow Answer

Commercial loan officers and insurance agents offer expert assistance that can be valuable to small business owners.

Correct AnswerverifiedShow Answer

Which of the following employment statistics about small businesses is true?

Correct AnswerverifiedShow Answer

Entrepreneurs seeking financial support from bankers and potential investors should:

Correct AnswerverifiedShow Answer

Anna recently left a large insurance firm and opened a home-based business preparing medical transcriptions for doctors. Based on recent statistics, she can expect:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The Spotlight on Small Business box is testimonial to the fact that entrepreneurs are problem solvers.

Correct AnswerverifiedShow Answer

Correct Answer
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