Question 1

One of the best places for young entrepreneurs to start shopping for a SBA loan is a(n) :

Accepted Answer

A)  Small Business Development Center.
B)  financial institution specializing in business loans.
C)  college or university financial aid office.
D)  the Internet web Page: of the Venture Capitalists Association.

Question 2

Although successful entrepreneurs are more tolerant of uncertainty,

Accepted Answer

A)  they seldom start another business after a failure.
B)  they develop mental games to see themselves through the risk game, especially.
C)  they always protect themselves from failure by taking-out lots of insurance.
D)  they strive to take calculated risks.

Question 3

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 4

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.

Question 5

Advancements in computer technology put home-based businesses at a disadvantage.

Accepted Answer

A) True 
 B)False

Question 6

Successful entrepreneurial teams:

Accepted Answer

A)  quickly organize themselves like large corporations.
B)  assign only one person to new product innovation.
C)  bring a variety of talent to the business venture.
D)  outsource most of the details of innovation.

Question 7

To be classified as a small business, a firm must have no more than 100 employees.

Accepted Answer

A) True 
 B)False

Question 8

Entrepreneurs applying for a bank loan should realize that bankers will:

Accepted Answer

A)  expect to receive a share of ownership in the business in exchange for their loan.
B)  expect the entrepreneur to provide a business plan.
C)  generally make loans only to small businesses in dot.com related industries.
D)  offer only short-term financing.

Question 9

Kenya recently quit a job with a large corporation to start her own business. While she realizes that her decision comes with risk, she is excited for the chance to be independent and by the challenges of running her own firm. Kenya is an example of a(n) :

Accepted Answer

A)  intrapreneur.
B)  entrepreneur.
C)  venture capitalist.
D)  raconteur.

Question 10

Small business owners often struggle in attracting qualified workers. Which of the following contributes to this problem?

Accepted Answer

A)  Bosses in small firms tend to be disrespectful to the workers
B)  Owners will not often listen to ideas suggested by the workers
C)  Employee relations are especially poor in small firms
D)  Many jobs in small firms have low pay and few benefits

Question 11

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.

Question 12

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 13

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.

Question 14

Successful entrepreneurs accept the risk of failure.

Accepted Answer

A) True 
 B)False

Question 15

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 16

Erin developed a new type of exercise equipment she calls the Tush N' Tone. After unsuccessfully searching for potential investors, she arranged a personal loan and borrowed additional money from her parents. Her willingness to continue believing in her idea and remain enthusiastic shows that Erin is:

Accepted Answer

A)  characteristically self-nurturing.
B)  better suited to managing a nonprofit organization.
C)  unaware of the risks she was taking.
D)  not a true entrepreneur.

Question 17

A is a written document that details the business idea, the target market and the business's competitive advantage, financial resources available for the business, and the qualification of the management.

Accepted Answer

A)  feasibility product
B)  marketing plan
C)  business plan
D)  statement of intent

Question 18

Micropreneurs are exempt from the local ordinances that restrict home-based businesses from operating in residential areas.

Accepted Answer

A) True 
 B)False

Question 19

Many entrepreneurs got the idea for their own business from their experience of working for others.

Accepted Answer

A) True 
 B)False

Question 20

There are several ethical considerations when starting a business, but competing against current and former work relationships is always fair game.

Accepted Answer

A) True 
 B)False

Exam 6: Entrepreneurship and Starting a Small Business

Many entrepreneurs got the idea for their own business from their experience of working for others.

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

Successful entrepreneurial teams:

Correct Answer
verified

Correct Answer
verified

Kenya recently quit a job with a large corporation to start her own business. While she realizes that her decision comes with risk, she is excited for the chance to be independent and by the challenges of running her own firm. Kenya is an example of a(n) :

Correct Answer
verified

One of the best places for young entrepreneurs to start shopping for a SBA loan is a(n) :

Correct Answer
verified

Micropreneurs are exempt from the local ordinances that restrict home-based businesses from operating in residential areas.

Correct Answer
verified

Successful entrepreneurs accept the risk of failure.

Correct Answer
verified

Although successful entrepreneurs are more tolerant of uncertainty,

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

Entrepreneurs applying for a bank loan should realize that bankers will:

Correct Answer
verified

There are several ethical considerations when starting a business, but competing against current and former work relationships is always fair game.

Correct Answer
verified

Small business owners often struggle in attracting qualified workers. Which of the following contributes to this problem?

Correct Answer
verified

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

Correct Answer
verified

To be classified as a small business, a firm must have no more than 100 employees.

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 seeking financial support from bankers and potential investors should:

Correct Answer
verified

A is a written document that details the business idea, the target market and the business's competitive advantage, financial resources available for the business, and the qualification of the management.

Correct Answer
verified

According to economist Bruce Kirchhoff, small business failures are:

Correct Answer
verified

Advancements in computer technology put home-based businesses at a disadvantage.

Correct Answer
verified

Exam 6: Entrepreneurship and Starting a Small Business

Many entrepreneurs got the idea for their own business from their experience of working for others.

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

Successful entrepreneurial teams:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Kenya recently quit a job with a large corporation to start her own business. While she realizes that her decision comes with risk, she is excited for the chance to be independent and by the challenges of running her own firm. Kenya is an example of a(n) :

Correct AnswerverifiedShow Answer

One of the best places for young entrepreneurs to start shopping for a SBA loan is a(n) :

Correct AnswerverifiedShow Answer

Micropreneurs are exempt from the local ordinances that restrict home-based businesses from operating in residential areas.

Correct AnswerverifiedShow Answer

Successful entrepreneurs accept the risk of failure.

Correct AnswerverifiedShow Answer

Although successful entrepreneurs are more tolerant of uncertainty,

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

Entrepreneurs applying for a bank loan should realize that bankers will:

Correct AnswerverifiedShow Answer

There are several ethical considerations when starting a business, but competing against current and former work relationships is always fair game.

Correct AnswerverifiedShow Answer

Small business owners often struggle in attracting qualified workers. Which of the following contributes to this problem?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

To be classified as a small business, a firm must have no more than 100 employees.

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 seeking financial support from bankers and potential investors should:

Correct AnswerverifiedShow Answer

A is a written document that details the business idea, the target market and the business's competitive advantage, financial resources available for the business, and the qualification of the management.

Correct AnswerverifiedShow Answer

According to economist Bruce Kirchhoff, small business failures are:

Correct AnswerverifiedShow Answer

Advancements in computer technology put home-based businesses at a disadvantage.

Correct AnswerverifiedShow Answer

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Correct Answer
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