Question 1

Which of the following is one of the largest crowdfunding sites in terms of traffic?

Accepted Answer

A)   Futurelearn.com
B)   Cesim.com
C)   Gofundme.com
D)   Businessinsider.com

Question 2

The U.S Small Business Administration (SBA) microloan program lends an average of $50,000 to start-up businesses through community nonprofit organizations.

Accepted Answer

A) True 
 B)False

Question 3

Who among the following is the most appropriate person to start his or her own venture?

Accepted Answer

A)   Gita, who has been an event manager for five years but discontinues her job as she wants to spend enough time with her one-year-old child
B)   Linda, who has been working as an assistant manager for over a year but cannot make decisions on her own
C)   Mira, who is intolerant of uncertainty and becomes emotionally depressed at the sign of any form of financial distress in her family
D)   Laura, who is against approaching others for funds and only has enough savings to keep her business afloat for one year

Question 4

Vincent runs a small company that manufactures hand-stitched custom leather shoes for men. His products generally attract young, wealthy entrepreneurs who care about their comfort and style. Being a unique business, it does not have much competition and enjoys monopoly. The opportunity of _____ is highlighted in the given scenario.

Accepted Answer

A)   using technology
B)   having lower overhead costs
C)   exploiting market niches
D)   providing homogenous service

Question 5

Which of the following statements is true of starting a business from scratch?

Accepted Answer

A)   It is hard to get credit from both lenders and suppliers.
B)   It results in high overhead costs.
C)   The ongoing percent-of-sales royalty fee can be very high.
D)   There is no scope for creativity.

Question 6

Buying an established business is a better plan than starting your business from scratch because:

Accepted Answer

A)   you have more creative freedom.
B)   you can choose your stakeholders.
C)   the organizational structure is in place.
D)   the chance of first-year failure is zero.

Question 7

Which of the following funding options provides advice and guidance to start-up businesses along with the funds?

Accepted Answer

A)   Crowdfunding
B)   Venture capital
C)   Treasury bills
D)   Promissory notes

Question 8

Caroline owns an online jewelry store. She has developed a smartphone application for her business that allows her customers to take their pictures and try out virtual jewelry over those pictures before placing the orders. The opportunity of _____ is highlighted in the given scenario.

Accepted Answer

A)   providing personal customer service
B)   having lower overhead costs
C)   using technology
D)   exploiting market niches

Question 9

Self-reliance is a characteristic that most successful entrepreneurs possess.

Accepted Answer

A) True 
 B)False

Question 10

In low-income countries, a high percentage of entrepreneurs are considered _____.

Accepted Answer

A)   necessity entrepreneurs
B)   rational entrepreneurs
C)   social entrepreneurs
D)   voluntary entrepreneurs

Question 11

Which of the following statements is true of people with an external locus of control?

Accepted Answer

A)   They are extremely self-reliant.
B)   They validate their own efforts.
C)   They take complete control of their lives.
D)   They feel buffeted by the actions of others.

Question 12

Howard is a young entrepreneur who has invested in creating a new form of social media. He is sure of his idea and believes that it will be successful in the long run. However, he is careful not to be overoptimistic about it and works on other ideas as well. In the given scenario, which of the following statements is true of Howard?

Accepted Answer

A)   He has an external locus of control.
B)   He is docile.
C)   He is a conformist.
D)   He is confident but not overconfident regarding his abilities.

Question 13

Which of the following statements is true of funding options for small businesses?

Accepted Answer

A)   Only 40% of new business owners launch with commercial loans.
B)   Only a tiny fraction of new businesses receive any venture capital money.
C)   The U.S. Small Business Administration gives free money to start-up businesses.
D)   Angel investors invest in start-ups without requiring a share of ownership.

Question 14

Wendy quit her job as the regional manager of Rubicon Inc., a multinational company, and started her own fashion boutique. Within two years, she began earning more than what she earned during her tenure at Rubicon. Which of the following advantages of entrepreneurship is highlighted in the given scenario?

Accepted Answer

A)   Survival
B)   Greater flexibility
C)   Independence
D)   Greater financial success

Question 15

Which of the following is an advantage of starting a business from scratch?

Accepted Answer

A)   You do not have to deal with a prior owner's bad decisions.
B)   Your concept, organizational structure, and operating practices are already in place.
C)   Relationships with customers, suppliers, and other stakeholders are already established.
D)   Getting financing and credit is less challenging.

Question 16

In the context of the U.S. economy, small firms tend to be effective innovators because of the presence of revolutionary new ideas.

Accepted Answer

A) True 
 B)False

Question 17

Suresh quits his nine-to-five job at a multinational company and starts his own event management company. In his new company, he does not practice a nine-to-five work regime. Instead, he organizes meetings with clients by making appointments that favor his schedule. Which of the following advantages of entrepreneurship is highlighted in the given scenario?

Accepted Answer

A)   Greater challenge
B)   Survival
C)   Greater financial success
D)   Flexibility

Question 18

_____ is a deep-seated sense that forces other than the individual are responsible for what happens in his or her life.

Accepted Answer

A)   An external locus of control
B)   Tolerance of uncertainty
C)   An internal locus of control
D)   Tolerance of failure

Question 19

Which of the following pieces of information is found in the U.S Small Business Administration (SBA)  resources?

Accepted Answer

A)   Health tips for entrepreneurs
B)   Industry-specific statistics
C)   Updates on multibillion-dollar business regulations
D)   Tips on making a company public

Question 20

In the context of small business opportunities, which of the following statements is true of market niches?

Accepted Answer

A)   They tend to have many competitors.
B)   They fail to offer enough potential for small, specialized companies.
C)   They tend to be quite attractive to small firms.
D)   They are high-profile enough for large firms.

Exam 7: Small Business Entrepreneurship: Economic Rocket Fuel

Which of the following pieces of information is found in the U.S Small Business Administration (SBA) resources?

Correct Answer
verified

In low-income countries, a high percentage of entrepreneurs are considered _____.

Correct Answer
verified

Which of the following statements is true of starting a business from scratch?

Correct Answer
verified

The U.S Small Business Administration (SBA) microloan program lends an average of $50,000 to start-up businesses through community nonprofit organizations.

Correct Answer
verified

Caroline owns an online jewelry store. She has developed a smartphone application for her business that allows her customers to take their pictures and try out virtual jewelry over those pictures before placing the orders. The opportunity of _____ is highlighted in the given scenario.

Correct Answer
verified

Which of the following statements is true of people with an external locus of control?

Correct Answer
verified

Correct Answer
verified

Which of the following funding options provides advice and guidance to start-up businesses along with the funds?

Correct Answer
verified

In the context of small business opportunities, which of the following statements is true of market niches?

Correct Answer
verified

Self-reliance is a characteristic that most successful entrepreneurs possess.

Correct Answer
verified

Correct Answer
verified

Buying an established business is a better plan than starting your business from scratch because:

Correct Answer
verified

Correct Answer
verified

Which of the following is an advantage of starting a business from scratch?

Correct Answer
verified

In the context of the U.S. economy, small firms tend to be effective innovators because of the presence of revolutionary new ideas.

Correct Answer
verified

Which of the following is one of the largest crowdfunding sites in terms of traffic?

Correct Answer
verified

Correct Answer
verified

Which of the following statements is true of funding options for small businesses?

Correct Answer
verified

Who among the following is the most appropriate person to start his or her own venture?

Correct Answer
verified

_____ is a deep-seated sense that forces other than the individual are responsible for what happens in his or her life.

Correct Answer
verified

Exam 7: Small Business Entrepreneurship: Economic Rocket Fuel

Which of the following pieces of information is found in the U.S Small Business Administration (SBA) resources?

Correct AnswerverifiedShow Answer

In low-income countries, a high percentage of entrepreneurs are considered _____.

Correct AnswerverifiedShow Answer

Which of the following statements is true of starting a business from scratch?

Correct AnswerverifiedShow Answer

The U.S Small Business Administration (SBA) microloan program lends an average of $50,000 to start-up businesses through community nonprofit organizations.

Correct AnswerverifiedShow Answer

Caroline owns an online jewelry store. She has developed a smartphone application for her business that allows her customers to take their pictures and try out virtual jewelry over those pictures before placing the orders. The opportunity of _____ is highlighted in the given scenario.

Correct AnswerverifiedShow Answer

Which of the following statements is true of people with an external locus of control?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following funding options provides advice and guidance to start-up businesses along with the funds?

Correct AnswerverifiedShow Answer

In the context of small business opportunities, which of the following statements is true of market niches?

Correct AnswerverifiedShow Answer

Self-reliance is a characteristic that most successful entrepreneurs possess.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Buying an established business is a better plan than starting your business from scratch because:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is an advantage of starting a business from scratch?

Correct AnswerverifiedShow Answer

In the context of the U.S. economy, small firms tend to be effective innovators because of the presence of revolutionary new ideas.

Correct AnswerverifiedShow Answer

Which of the following is one of the largest crowdfunding sites in terms of traffic?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements is true of funding options for small businesses?

Correct AnswerverifiedShow Answer

Who among the following is the most appropriate person to start his or her own venture?

Correct AnswerverifiedShow Answer

_____ is a deep-seated sense that forces other than the individual are responsible for what happens in his or her life.

Correct AnswerverifiedShow Answer

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