Question 1

It is important for an entrepreneur to be highly energetic.

Accepted Answer

A) True 
 B)False

Question 2

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

Question 3

Pepe is confident that Pepe's Pizzazzeria will be a success, but only if he has enough money to do things right. Since Pepe has very little personal wealth, he knows he must find financial assistance. In order prepare for meetings with bankers and potential investors, Pepe should

Accepted Answer

A)   hire a public relations firm to develop promotional materials.
B)   develop a business plan.
C)   read a book on entrepreneurship.
D)   create a partnership contract.E) B) and C)
F) None of the above

Question 4

Which of the following statements explains one of the reasons that people in the U.S. take the entrepreneurial challenge?

Accepted Answer

A)   It's all about profits, and the chance to make a lot of money.
B)   It's about independence and the opportunity to share in the American dream.
C)   It's about power and fame.
D)   It's about a lot of things, but it does not include personal achievement.E) None of the above
F) B) and C)

Question 5

Arturo is a partner in a firm that specializes in producing vitamins and health food products. While the business is considered small by U.S. standards, he is attempting to persuade his partner to expand internationally. Arturo would list which of the following as an advantage of going global?

Accepted Answer

A)   Exporting can help sell excess inventory.
B)   Marketing programs benefit from the cultural similarities in prospective markets.
C)   Financing can easily be obtained to expand internationally.
D)   Selling your products in other markets reduces their life cycle, making them more attractive.E) All of the above
F) B) and D)

Question 6

Employees of small businesses often have greater job satisfaction than do employees of larger firms. One reason for this difference in job satisfaction is that employees of small businesses often

Accepted Answer

A)   earn higher wages.
B)   receive more vacation time.
C)   get more respect from their bosses.
D)   have more job security and better fringe benefits.E) All of the above
F) B) and C)

Question 7

Jin Yang wants to start a small business. But he has not yet uncovered an opportunity that would offer him security and the possibility of high profits. Jin Yang will likely find that one must risk more in order to attain high profits.

Accepted Answer

A) True 
 B)False

Question 8

Prior to creating a business plan, discussions with bankers and investors can help entrepreneurs determine the amount of financing available.

Accepted Answer

A) True 
 B)False

Question 9

One advantage enjoyed by small businesses in international markets is that overseas buyers like dealing with individuals rather than large corporate bureaucracies.

Accepted Answer

A) True 
 B)False

Question 10

While the Small Business Administration provides management advice to new business owners, it is not empowered to provide financial assistance.

Accepted Answer

A) True 
 B)False

Question 11

Two key management functions that need particular attention when starting a business are

Accepted Answer

A)   human relations and accounting.
B)   planning and financing.
C)   marketing and public relations.
D)   staffing and controlling.E) C) and D)
F) None of the above

Question 12

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

Question 13

Northeast City College received a government grant to create a business incubator. Once completed, Northeast City College's 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 14

One reason why many U.S. small businesses are not involved in exporting is

Accepted Answer

A)   there is a limited market for their products.
B)   the government's new homeland security programs limit opportunities for small businesses.
C)   many of these firms do not know how to get started.
D)   U.S. products are perceived as inferior.E) All of the above
F) A) and D)

Question 15

Austin, Aiden, and Zara wanted to open A₂Z Sports Bar that serves a unique offering of beer, weekend entertainment, and a limited menu of appetizers. In one of the preliminary meetings, Zara presented a list of reasons that small businesses fail. Although many of the ideas on this list were applicable to many types of business, one challenge pertained specifically to the restaurant and bar business. The challenge he referred to was

Accepted Answer

A)   underestimating how much time it will take to build a market.
B)   borrowing money without planning just how and when to pay it back.
C)   carrying habits of personal extravagance into the business.
D)   some of the easiest businesses to start have the least growth prospects and greatest failure rates.E) A) and C)
F) A) and B)

Question 16

One of the hurdles small businesses face when deciding to export is

Accepted Answer

A)   financing is often difficult to find.
B)   overseas buyers prefer dealing with large corporations.
C)   smaller companies must wait in line after large companies to qualify for tariffs.
D)   American products are perceived as inferior.E) None of the above
F) B) and D)

Question 17

When seeking financial backing from a venture capitalist, a small business owner should realize that the venture capitalist will

Accepted Answer

A)   charge an interest rate that is much higher than any other lender.
B)   not be interested in the management of the business.
C)   expect an ownership stake in the company in exchange for financial backing.
D)   demand that the money be repaid within 90 days or less.E) B) and C)
F) A) and D)

Question 18

Preston believes his family-run business is more likely to avoid many of the problems growing businesses have with managing employees. His attitude will likely hinder the growth of his company.

Accepted Answer

A) True 
 B)False

Question 19

The easiest businesses to start also have the least growth potential and the greatest failure rates.

Accepted Answer

A) True 
 B)False

Question 20

Ryan was called by one of his regular customers asking if he had time to repair some broken sprinkler heads on that customer's underground sprinkling system. Although it was already 6:00 p.m. and he already put in a full day of work, he turned his car around and headed for the customer's house. As a small business owner, Ryan 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) A) and B)
F) C) and D)

Exam 6: Entrepreneurship and Starting a Small Business

One reason why many U.S. small businesses are not involved in exporting is

Correct Answer
verified

Preston believes his family-run business is more likely to avoid many of the problems growing businesses have with managing employees. His attitude will likely hinder the growth of his company.

Correct Answer
verified

Correct Answer
verified

Pepe is confident that Pepe's Pizzazzeria will be a success, but only if he has enough money to do things right. Since Pepe has very little personal wealth, he knows he must find financial assistance. In order prepare for meetings with bankers and potential investors, Pepe should

Correct Answer
verified

One advantage enjoyed by small businesses in international markets is that overseas buyers like dealing with individuals rather than large corporate bureaucracies.

Correct Answer
verified

Arturo is a partner in a firm that specializes in producing vitamins and health food products. While the business is considered small by U.S. standards, he is attempting to persuade his partner to expand internationally. Arturo would list which of the following as an advantage of going global?

Correct Answer
verified

It is important for an entrepreneur to be highly energetic.

Correct Answer
verified

An entrepreneurial team consists of

Correct Answer
verified

Two key management functions that need particular attention when starting a business are

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

Jin Yang wants to start a small business. But he has not yet uncovered an opportunity that would offer him security and the possibility of high profits. Jin Yang will likely find that one must risk more in order to attain high profits.

Correct Answer
verified

Employees of small businesses often have greater job satisfaction than do employees of larger firms. One reason for this difference in job satisfaction is that employees of small businesses often

Correct Answer
verified

Northeast City College received a government grant to create a business incubator. Once completed, Northeast City College's facility will offer

Correct Answer
verified

Prior to creating a business plan, discussions with bankers and investors can help entrepreneurs determine the amount of financing available.

Correct Answer
verified

While the Small Business Administration provides management advice to new business owners, it is not empowered to provide financial assistance.

Correct Answer
verified

When seeking financial backing from a venture capitalist, a small business owner should realize that the venture capitalist will

Correct Answer
verified

Correct Answer
verified

The easiest businesses to start also have the least growth potential and the greatest failure rates.

Correct Answer
verified

Which of the following statements explains one of the reasons that people in the U.S. take the entrepreneurial challenge?

Correct Answer
verified

One of the hurdles small businesses face when deciding to export is

Correct Answer
verified

Exam 6: Entrepreneurship and Starting a Small Business

One reason why many U.S. small businesses are not involved in exporting is

Correct AnswerverifiedShow Answer

Preston believes his family-run business is more likely to avoid many of the problems growing businesses have with managing employees. His attitude will likely hinder the growth of his company.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Pepe is confident that Pepe's Pizzazzeria will be a success, but only if he has enough money to do things right. Since Pepe has very little personal wealth, he knows he must find financial assistance. In order prepare for meetings with bankers and potential investors, Pepe should

Correct AnswerverifiedShow Answer

One advantage enjoyed by small businesses in international markets is that overseas buyers like dealing with individuals rather than large corporate bureaucracies.

Correct AnswerverifiedShow Answer

Arturo is a partner in a firm that specializes in producing vitamins and health food products. While the business is considered small by U.S. standards, he is attempting to persuade his partner to expand internationally. Arturo would list which of the following as an advantage of going global?

Correct AnswerverifiedShow Answer

It is important for an entrepreneur to be highly energetic.

Correct AnswerverifiedShow Answer

An entrepreneurial team consists of

Correct AnswerverifiedShow Answer

Two key management functions that need particular attention when starting a business are

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

Jin Yang wants to start a small business. But he has not yet uncovered an opportunity that would offer him security and the possibility of high profits. Jin Yang will likely find that one must risk more in order to attain high profits.

Correct AnswerverifiedShow Answer

Employees of small businesses often have greater job satisfaction than do employees of larger firms. One reason for this difference in job satisfaction is that employees of small businesses often

Correct AnswerverifiedShow Answer

Northeast City College received a government grant to create a business incubator. Once completed, Northeast City College's facility will offer

Correct AnswerverifiedShow Answer

Prior to creating a business plan, discussions with bankers and investors can help entrepreneurs determine the amount of financing available.

Correct AnswerverifiedShow Answer

While the Small Business Administration provides management advice to new business owners, it is not empowered to provide financial assistance.

Correct AnswerverifiedShow Answer

When seeking financial backing from a venture capitalist, a small business owner should realize that the venture capitalist will

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The easiest businesses to start also have the least growth potential and the greatest failure rates.

Correct AnswerverifiedShow Answer

Which of the following statements explains one of the reasons that people in the U.S. take the entrepreneurial challenge?

Correct AnswerverifiedShow Answer

One of the hurdles small businesses face when deciding to export is

Correct AnswerverifiedShow Answer

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