Question 1

The Making Ethical Decisions box,"Should You Stay or Should You Go?" addresses a dilemma worthy of consideration.It describes:

Accepted Answer

A)   an unethical situation where the business owner's need for capital causes him/her to delay all payments to suppliers for 120 days,forcing several of his close business relationships,out-of-business.
B)   the slow death of a business and how important it is to delay payments,sell-off assets and do everything possible to save a failing business except dismissing employees who need their jobs for survival.
C)   ethical decisions that need to be considered when employees leave a faltering business to start their own,eventually competing against their previous employer.
D)   the unethical and disloyal decision to leave your family business and start your own,taking with you all the family business's trade secrets.E) None of the above
F) A) and B)

Question 2

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

Question 3

Ramsey is a dreamer rather than a doer.This is an important attribute for an entrepreneur since their job is to be creative and develop new ideas that are then implemented by others.

Accepted Answer

A) True 
 B)False

Question 4

A small business management course at a community college may offer entrepreneurs an opportunity to:

Accepted Answer

A)   meet with experienced entrepreneurs and learn from their advice.
B)   try out ideas on a computer simulation before risking real time and money.
C)   listen to a qualified instructor solve all of the problems of small business owners.
D)   be part of a group that will include angel investors.E) A) and B)
F) None of the above

Question 5

Southwest College received a government grant to establish a business incubator.This facility will offer:

Accepted Answer

A)   local government agencies assistance in obtaining funds for urban renewal.
B)   area businesses advice on employee benefits and ways to reduce taxes.
C)   venture capitalists an opportunity to identify new entrepreneurs.
D)   new businesses low-cost office space with basic business services.E) A) and B)
F) All of the above

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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 8

A good business plan will:

Accepted Answer

A)   focus on the big picture and omit the small details of operating the business.
B)   describe all aspects of the business,including product,the target market,the nature of the competition,any financial resources,and the owner's qualifications.
C)   be purposefully vague,since specifics can restrict creativity and flexibility.
D)   focus on the nature of the business and the target market,omitting personal information about the owner in order to avoid personality issues.E) All of the above
F) B) and C)

Question 9

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

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 B)
F) C) and D)

Question 12

Small businesses:

Accepted Answer

A)   deal with similar management issues that large companies face.
B)   deal with very different management issues due to the very different management challenges experienced by small businesses.
C)   do not seek government funding due to the fact that the federal government has made it very clear that it must support large operations before small operations.
D)   concern themselves with state-of-the-art information and accounting technology but not employee relations due to their challenge to financially support employee benefits programs.E) B) and C)
F) All of the above

Question 13

Most entrepreneurs prefer working for someone else.

Accepted Answer

A) True 
 B)False

Question 14

Marina has just completed her business degree.She should focus her job search to only include large corporations.

Accepted Answer

A) True 
 B)False

Question 15

Independence,challenge,and opportunity are among the key reasons given by those who assume the risks of entrepreneurship.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following best describes the difference between an intrapreneur and an entrepreneur?

Accepted Answer

A)   Intrapreneurs start nonprofit organizations while entrepreneurs start profit-seeking businesses
B)   Intraprenuers are practical while entrepreneurs are creative
C)   Intrapreneurs work within existing corporations while entrepreneurs assume the risks of starting their own business
D)   Intrapreneurs limit their efforts to financial investments,while entrepreneurs are involved in the management of all areas of a businessE) B) and C)
F) A) and C)

Question 17

The size of the world market is:

Accepted Answer

A)   500 million
B)   7 billion
C)   7 million
D)   10 trillionE) A) and B)
F) A) and C)

Question 18

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 19

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

Question 20

An entrepreneurial team consists of:

Accepted Answer

A)   managers with similar skills,abilities,and interests.
B)   experienced professionals from different areas of business.
C)   a group of wealthy investors who share a vision for a product.
D)   representatives from management,labor,and the government who work together to solve a company's problems in a creative way.E) B) and C)
F) B) and D)

Exam 6: Entrepreneurship and Starting a Small Business

Which of the following best describes the difference between an intrapreneur and an entrepreneur?

Correct AnswerverifiedShow Answer

Entrepreneurs seeking financial support from bankers and potential investors should:

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

Southwest College received a government grant to establish a business incubator.This facility will offer:

Correct AnswerverifiedShow Answer

A good business plan will:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

According to economist Bruce Kirchhoff,small business failures are:

Correct AnswerverifiedShow Answer

A small business management course at a community college may offer entrepreneurs an opportunity to:

Correct AnswerverifiedShow Answer

Ramsey is a dreamer rather than a doer.This is an important attribute for an entrepreneur since their job is to be creative and develop new ideas that are then implemented by others.

Correct AnswerverifiedShow Answer

Marina has just completed her business degree.She should focus her job search to only include large corporations.

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

An entrepreneurial team consists of:

Correct AnswerverifiedShow Answer

The size of the world market is:

Correct AnswerverifiedShow Answer

Most entrepreneurs prefer working for someone else.

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

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

Correct AnswerverifiedShow Answer

The Making Ethical Decisions box,"Should You Stay or Should You Go?" addresses a dilemma worthy of consideration.It describes:

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

Small businesses:

Correct AnswerverifiedShow Answer

Independence,challenge,and opportunity are among the key reasons given by those who assume the risks of entrepreneurship.

Correct AnswerverifiedShow Answer

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