Question 1

Small businesses often have advantages in international markets. One advantage is:

Accepted Answer

A)   a greater expertise in managing the paperwork required to sell goods in international markets.
B)   a better understanding of the cultural differences involved.
C)   individualized customer service as opposed to impersonal corporate bureaucracies.
D)   the ability to obtain financing through the International Monetary Fund.E) A) and B)
F) A) and C)

Question 2

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) All of the above
F) None of the above

Question 3

Recent evidence suggests that the small business failure rate is significantly higher than previously reported.

Accepted Answer

A) True 
 B)False

Question 4

An entrepreneur's personal financial position will have a minor impact on negotiations with bankers for a small business loan.

Accepted Answer

A) True 
 B)False

Question 5

Success in running a business depends on knowing your customers, managing your employees, and keeping efficient records.

Accepted Answer

A) True 
 B)False

Question 6

It is important for an entrepreneur to be highly energetic.

Accepted Answer

A) True 
 B)False

Question 7

Jennifer, a talented photography student, started a corporate photography business. She planned to solicit jobs from large corporations which needed pictures for their annual reports and websites. Although filling a unique niche, Jennifer needed the security that the business would thrive and that she would earn enough to support herself and her child. She also hoped that she would spend less time each day calling on potential clients and more time doing the actual shoots. As her small business consultant, which of the following suggestions would you have for Jennifer?

Accepted Answer

A)   Jennifer should either take the risk necessary to develop a small business, or go to work for someone else.
B)   In the beginning, it's doubtful that Jennifer will realize ease of entry, security, and good profits. She needs to make plans in the event that one or more of these does not materialize quickly.
C)   Photographers can take pictures of a multitude of things. It's probably not good strategy to limit her business to only photographing the needs of large corporations.
D)   Jennifer should definitely make time for herself each day so that she does not experience burn-out. If she plans well, leaping into her own business will provide her with several hours of unstructured time each day where she can perfect her craft even more.E) B) and D)
F) A) and B)

Question 8

Which of the following statements is not a challenge for home-based businesses?

Accepted Answer

A)   Affordable technology such as the Internet
B)   Staying focused on the business and leaving home chores for after-business hours
C)   Using your time wisely
D)   Promoting your servicesE) A) and B)
F) B) and C)

Question 9

The most common small business failures occur in businesses that are the easiest to start.

Accepted Answer

A) True 
 B)False

Question 10

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 11

Small businesses can provide more personalized service than a large corporation to overseas customers.

Accepted Answer

A) True 
 B)False

Question 12

According to SBA guidelines, a manufacturing firm with 1,000 employees:

Accepted Answer

A)   would be classified as a large firm in the industrial sector.
B)   may be classified as a small business depending upon the size of other firms in the industry.
C)   is too small to achieve the efficiencies of large scale production.
D)   is classified as an S corporation.E) A) and B)
F) B) and C)

Question 13

Commercial loan officers serve as a resource for small business owners for information regarding risk management.

Accepted Answer

A) True 
 B)False

Question 14

In order to qualify for a microloan from the SBA, an entrepreneur must have adequate collateral, and a proven track record of success.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is a characteristic of successful entrepreneurs?

Accepted Answer

A)   Power-seeking
B)   Relies heavily on others who believe in the business
C)   Willingness and desire to follow others
D)   Action-orientedE) None of the above
F) All of the above

Question 16

Entrepreneurs are well advised to avoid starting businesses in the same market in which they were previously employed.

Accepted Answer

A) True 
 B)False

Question 17

Antoine is considering marketing his bicycles in Brazil. If he enters the Brazilian market, he is likely to learn that ____________

Accepted Answer

A)   some cultures like dealing with individuals from smaller companies rather than large companies
B)   he will not be able to keep up with demand
C)   most foreign cultures prefer large company relationships to small company relationships
D)   there is strong resistance of Brazilian firms with respect to American productsE) A) and B)
F) A) and C)

Question 18

A creative person working within a corporation to launch new products and generate new profits is known as a(n) :

Accepted Answer

A)   arbitrator.
B)   micropreneur.
C)   macropreneur.
D)   intrapreneur.E) None of the above
F) B) and C)

Question 19

Entrepreneurial teams combine the creative marketing and production ideas of a group of experienced people.

Accepted Answer

A) True 
 B)False

Question 20

Carrie, a student at Metropolitan Community College, dreams of starting her own business. In an effort to learn as much as she can about small business management, she talked to four friends who each offered their advice. Which of these suggestions is likely to help Carrie the most?

Accepted Answer

A)   The best way to learn about running a business is by getting hands-on experience. You should quit school and put your dream into action.
B)   Take courses related to small business management and look for a job with a successful businessperson, preferably in your field of interest.
C)   Since every business is unique, don't worry about advice from others. Go to a bank, get a business loan, and live your dream.
D)   Starting and managing a small business requires little more than common sense. If your idea is unique, hard work will guarantee your success.E) All of the above
F) A) and B)

Exam 6: Entrepreneurship and Starting a Small Business

Success in running a business depends on knowing your customers, managing your employees, and keeping efficient records.

Correct Answer
verified

Recent evidence suggests that the small business failure rate is significantly higher than previously reported.

Correct Answer
verified

Entrepreneurial teams combine the creative marketing and production ideas of a group of experienced people.

Correct Answer
verified

In order to qualify for a microloan from the SBA, an entrepreneur must have adequate collateral, and a proven track record of success.

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

Entrepreneurs are well advised to avoid starting businesses in the same market in which they were previously employed.

Correct Answer
verified

Antoine is considering marketing his bicycles in Brazil. If he enters the Brazilian market, he is likely to learn that ____________

Correct Answer
verified

According to SBA guidelines, a manufacturing firm with 1,000 employees:

Correct Answer
verified

Small business employees:

Correct Answer
verified

The most common small business failures occur in businesses that are the easiest to start.

Correct Answer
verified

Commercial loan officers serve as a resource for small business owners for information regarding risk management.

Correct Answer
verified

An entrepreneur's personal financial position will have a minor impact on negotiations with bankers for a small business loan.

Correct Answer
verified

A creative person working within a corporation to launch new products and generate new profits is known as a(n) :

Correct Answer
verified

It is important for an entrepreneur to be highly energetic.

Correct Answer
verified

Small businesses can provide more personalized service than a large corporation to overseas customers.

Correct Answer
verified

Correct Answer
verified

Small businesses often have advantages in international markets. One advantage is:

Correct Answer
verified

Which of the following is a characteristic of successful entrepreneurs?

Correct Answer
verified

Which of the following statements is not a challenge for home-based businesses?

Correct Answer
verified

Carrie, a student at Metropolitan Community College, dreams of starting her own business. In an effort to learn as much as she can about small business management, she talked to four friends who each offered their advice. Which of these suggestions is likely to help Carrie the most?

Correct Answer
verified

Exam 6: Entrepreneurship and Starting a Small Business

Success in running a business depends on knowing your customers, managing your employees, and keeping efficient records.

Correct AnswerverifiedShow Answer

Recent evidence suggests that the small business failure rate is significantly higher than previously reported.

Correct AnswerverifiedShow Answer

Entrepreneurial teams combine the creative marketing and production ideas of a group of experienced people.

Correct AnswerverifiedShow Answer

In order to qualify for a microloan from the SBA, an entrepreneur must have adequate collateral, and a proven track record of success.

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

Entrepreneurs are well advised to avoid starting businesses in the same market in which they were previously employed.

Correct AnswerverifiedShow Answer

Antoine is considering marketing his bicycles in Brazil. If he enters the Brazilian market, he is likely to learn that ____________

Correct AnswerverifiedShow Answer

According to SBA guidelines, a manufacturing firm with 1,000 employees:

Correct AnswerverifiedShow Answer

Small business employees:

Correct AnswerverifiedShow Answer

The most common small business failures occur in businesses that are the easiest to start.

Correct AnswerverifiedShow Answer

Commercial loan officers serve as a resource for small business owners for information regarding risk management.

Correct AnswerverifiedShow Answer

An entrepreneur's personal financial position will have a minor impact on negotiations with bankers for a small business loan.

Correct AnswerverifiedShow Answer

A creative person working within a corporation to launch new products and generate new profits is known as a(n) :

Correct AnswerverifiedShow Answer

It is important for an entrepreneur to be highly energetic.

Correct AnswerverifiedShow Answer

Small businesses can provide more personalized service than a large corporation to overseas customers.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Small businesses often have advantages in international markets. One advantage is:

Correct AnswerverifiedShow Answer

Which of the following is a characteristic of successful entrepreneurs?

Correct AnswerverifiedShow Answer

Which of the following statements is not a challenge for home-based businesses?

Correct AnswerverifiedShow Answer

Carrie, a student at Metropolitan Community College, dreams of starting her own business. In an effort to learn as much as she can about small business management, she talked to four friends who each offered their advice. Which of these suggestions is likely to help Carrie the most?

Correct AnswerverifiedShow Answer

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