Question 1

Small businesses create about ________ percent of the new jobs in the United States.

Accepted Answer

A)   25
B)   45
C)   65
D)   85E) A) and C)
F) A) and B)

Question 2

Kyle is a recent college graduate with a business degree. While still in school, he learned that as a potential small business owner, he should focus his sights on domestic business only.

Accepted Answer

A) True 
 B)False

Question 3

About 80% of U.S. workers find their first job in small business.

Accepted Answer

A) True 
 B)False

Question 4

The Small Business Administration's microloan program awards loans to entrepreneurs based primarily on their

Accepted Answer

A)   collateral.
B)   credit history.
C)   previous business success.
D)   integrity and sound business idea.E) B) and C)
F) All of the above

Question 5

From a competitive standpoint, small businesses cannot expect to successfully compete with large corporations in international markets.

Accepted Answer

A) True 
 B)False

Question 6

Hiring family members offers the best answer to the problem of attracting qualified employees.

Accepted Answer

A) True 
 B)False  False

Question 7

After Abby graduated from college last year, her uncle created an accounting position for her in his business. Her older brother is in charge of purchasing inventory for the store, yet often the store runs out of popular items or is overstocked with products that must be marked down to be sold. Abby is confident that her brother is more suited for handling accounting and finance, while she has a sense of what sells and how much sells. Although she has spoken with her uncle about it a couple of times, he seems reluctant to change. As the founder of the business, he may

Accepted Answer

A)   find it difficult to remove family members from positions, even if it is not good for the business.
B)   find it difficult to retrain Abby for the job, and even though his business is losing opportunities, he will stay the course.
C)   know that profit margins have declined, but he doesn't care.
D)   have a bigger picture of things, and not feel the need to respond to a family member's request.E) A) and B)
F) A) and D)

Question 8

The business opportunities with the greatest growth potential tend to be in the high technology industries.

Accepted Answer

A) True 
 B)False

Question 9

Discuss several ways the Small Business Administration assists entrepreneurs.

Accepted Answer

a. The SBA is a valuable source of information and technical advice for small businesspeople.
b. The SBA also provides financial assistance to small businesses through a variety of programs. The SBA will sometimes provide direct loans to firms that have difficulty securing conventional loans from private sources. The SBA also provides programs to help minorities and women obtain funds.
c. The SBA licenses SBICs, which are private investment companies that loan money to small businesses.
d. The SBA operates SCORE, the Service Corps of Retired Executives. This group provides counseling and advice to small business owners.

Question 10

Quinn has landed a management position with a pioneering new small business after many years of working as a regional manager for a nationally known nonprofit. As Quinn starts her new job, she is likely to find that

Accepted Answer

A)   due to the significant differences in large and small firms, her previous experience will be of little value in her new position.
B)   the principles of management are much the same at large and small firms.
C)   nonprofit organizations are motivated by their desire to help people and so financial management is of little concern.
D)   planning is more important to a nonprofit organization and less important to a small business so she will need to adjust the time she spends on the planning function.E) None of the above
F) C) and D)

Question 11

Intrapreneurs make use of ________ to develop and launch new products and generate new profits.

Accepted Answer

A)   their employer's existing human, financial, and physical resources
B)   their own personal financial resources
C)   government-supplied physical and financial resources
D)   old ideas abandoned by entrepreneursE) A) and C)
F) All of the above

Question 12

The entrepreneur's integrity is not relevant to bankers when determining the creditworthiness of a business loan.

Accepted Answer

A) True 
 B)False

Question 13

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) None of the above
F) B) and D)

Question 14

The Internet has slowed small businesses' participation in international markets.

Accepted Answer

A) True 
 B)False

Question 15

While entrepreneurs frequently earn significant profits for themselves, their impact on society is quite small.

Accepted Answer

A) True 
 B)False

Question 16

Mohamed's four employees have been with him since he opened Employment Experts, Inc., nearly a decade ago. As he anticipates staffing his new branch office, he decides none of these four long-time employees are ready to manage the office. Faced with this difficult situation, what should Mohamed do?

Accepted Answer

A)   He should appoint one of the three anyway to show that he appreciates their loyalty and commitment.
B)   He should run the new branch himself and appoint one of the three to take over the original office.
C)   He should hire a new qualified employee to manage the office since utilizing his unready employees could be detrimental to the business.
D)   He should appoint all three to the new branch and let them run it using a team approach.E) B) and C)
F) A) and D)

Question 17

Angelina recently left her job at a large corporation to start her own business. She knows that her decision comes with risk, but she is excited to be her own boss and to tackle the challenges that running her own company will bring. Angelina is an example of a(n)

Accepted Answer

A)   intrapreneur.
B)   entrepreneur.
C)   venture capitalist.
D)   raconteur.E) All of the above
F) A) and B)

Question 18

When comparing small businesses to their larger competitors, it is clear that

Accepted Answer

A)   bigger is always better.
B)   small firms can always outperform big firms on a level playing field.
C)   small firms often can offer more personalized customer services than big firms.
D)   small firms are slower to respond to opportunities than are large firms.E) A) and B)
F) A) and C)

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 6: Entrepreneurship and Starting a Small Business

Small businesses create about ________ percent of the new jobs in the United States.

Correct Answer
verified

Kyle is a recent college graduate with a business degree. While still in school, he learned that as a potential small business owner, he should focus his sights on domestic business only.

Correct Answer
verified

About 80% of U.S. workers find their first job in small business.

Correct Answer
verified

The Small Business Administration's microloan program awards loans to entrepreneurs based primarily on their

Correct Answer
verified

From a competitive standpoint, small businesses cannot expect to successfully compete with large corporations in international markets.

Correct Answer
verified

Hiring family members offers the best answer to the problem of attracting qualified employees.

Correct Answer
verified
False

Correct Answer
verified

The business opportunities with the greatest growth potential tend to be in the high technology industries.

Correct Answer
verified

Discuss several ways the Small Business Administration assists entrepreneurs.

Quinn has landed a management position with a pioneering new small business after many years of working as a regional manager for a nationally known nonprofit. As Quinn starts her new job, she is likely to find that

Correct Answer
verified

Intrapreneurs make use of ________ to develop and launch new products and generate new profits.

Correct Answer
verified

The entrepreneur's integrity is not relevant to bankers when determining the creditworthiness of a business loan.

Correct Answer
verified

To be considered part of a market, an individual must

Correct Answer
verified

The Internet has slowed small businesses' participation in international markets.

Correct Answer
verified

While entrepreneurs frequently earn significant profits for themselves, their impact on society is quite small.

Correct Answer
verified

Mohamed's four employees have been with him since he opened Employment Experts, Inc., nearly a decade ago. As he anticipates staffing his new branch office, he decides none of these four long-time employees are ready to manage the office. Faced with this difficult situation, what should Mohamed do?

Correct Answer
verified

Angelina recently left her job at a large corporation to start her own business. She knows that her decision comes with risk, but she is excited to be her own boss and to tackle the challenges that running her own company will bring. Angelina is an example of a(n)

Correct Answer
verified

When comparing small businesses to their larger competitors, it is clear that

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 is a characteristic of successful entrepreneurs?

Correct Answer
verified
D

Exam 6: Entrepreneurship and Starting a Small Business

Small businesses create about ________ percent of the new jobs in the United States.

Correct AnswerverifiedShow Answer

Kyle is a recent college graduate with a business degree. While still in school, he learned that as a potential small business owner, he should focus his sights on domestic business only.

Correct AnswerverifiedShow Answer

About 80% of U.S. workers find their first job in small business.

Correct AnswerverifiedShow Answer

The Small Business Administration's microloan program awards loans to entrepreneurs based primarily on their

Correct AnswerverifiedShow Answer

From a competitive standpoint, small businesses cannot expect to successfully compete with large corporations in international markets.

Correct AnswerverifiedShow Answer

Hiring family members offers the best answer to the problem of attracting qualified employees.

Correct AnswerverifiedFalse

Correct AnswerverifiedShow Answer

The business opportunities with the greatest growth potential tend to be in the high technology industries.

Correct AnswerverifiedShow Answer

Discuss several ways the Small Business Administration assists entrepreneurs.

Quinn has landed a management position with a pioneering new small business after many years of working as a regional manager for a nationally known nonprofit. As Quinn starts her new job, she is likely to find that

Correct AnswerverifiedShow Answer

Intrapreneurs make use of ________ to develop and launch new products and generate new profits.

Correct AnswerverifiedShow Answer

The entrepreneur's integrity is not relevant to bankers when determining the creditworthiness of a business loan.

Correct AnswerverifiedShow Answer

To be considered part of a market, an individual must

Correct AnswerverifiedShow Answer

The Internet has slowed small businesses' participation in international markets.

Correct AnswerverifiedShow Answer

While entrepreneurs frequently earn significant profits for themselves, their impact on society is quite small.

Correct AnswerverifiedShow Answer

Mohamed's four employees have been with him since he opened Employment Experts, Inc., nearly a decade ago. As he anticipates staffing his new branch office, he decides none of these four long-time employees are ready to manage the office. Faced with this difficult situation, what should Mohamed do?

Correct AnswerverifiedShow Answer

Angelina recently left her job at a large corporation to start her own business. She knows that her decision comes with risk, but she is excited to be her own boss and to tackle the challenges that running her own company will bring. Angelina is an example of a(n)

Correct AnswerverifiedShow Answer

When comparing small businesses to their larger competitors, it is clear that

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 is a characteristic of successful entrepreneurs?

Correct AnswerverifiedD

Correct Answer
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Correct Answer
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False

Correct Answer
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Correct Answer
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D