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Exam 6: Entrepreneurship and Starting a Small Business

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Question 1

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It is important for an entrepreneur to be highly energetic.

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Question 2

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Of all nonfarm businesses in the United States,almost 97 percent are considered small by the Small Business Administration (SBA)standards.

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After selling his software business for a sizeable profit,software engineer Gus Greene decided to try something different.He would become a general contractor on a large condo development in an upcoming area of Atlanta,Georgia.He invested several million and then borrowed another $30 million (or 75% of the project cost) from a lending institution.He based his borrowing risk on the assumption that the housing market would continue to appreciate for several years to come.As the housing market began a free-fall in early 2008 and continued into 2010,Gus saw his business crashing around him.Sales were very meager and the bank wanted its money back.Which of the following statements might best describe the reason Gus' business failed?

Since entrepreneurs are starting new businesses,experience gained from working for an established business isn't particularly helpful.

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.

Greg benefited from his experience working for an established private company that provided innovative lighting for large music venues.Although confident that he could start his own lighting business,he had limited capital to buy the necessary equipment needed to successfully compete with established companies.Which of the following strategies would best help Greg achieve his goal of business ownership?

People who are 16 to 34 years old are not attracted to starting their own business.

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

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

The most important difference between entrepreneurs and micropreneurs is the focus placed by micropreneurs on balancing the demands of work and family.

Entrepreneurs are less important now than in the past to the U.S.economy.

Your brother,a family dentist,has opened a new office in your hometown.As a business student you know that this type of business experiences low failure rates.

After several years of volunteering to play the piano and sing at a local nursing home,Callie decided the time was right to tap into the growing elder care market.She started Music and Memories,Inc. ,a nonprofit corporation that would hire local talent to perform her own music productions directed toward this market.In order to write and produce several productions each year,Callie needed start-up funds.An instructor at the local community college suggested that she begin by _____________,because this effort would serve as her "calling card" for interested investors,as well as government grant applications that Callie might pursue.

The United States government views entrepreneurship as a result of an individual's self-motivation.The government can do very little to encourage an individual to become an entrepreneur.

Potential entrepreneurs would be well advised to surround themselves with people who are smarter than they are.

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

The SBA's ________ program provides export financing opportunities for small businesses.

Juanita wants to operate her own business.Although she admits it would be nice to earn a healthy profit,her primary motivation is the excitement and challenge of starting and running a business.Juanita's attitude is different from most small business owners,who usually focus solely on the earnings potential of their ventures,as well as the opportunity to acquire power and prestige.

The SBA may guarantee loans made by a financial institution and repay them if the borrowers stop making payments.

After personal savings,the next largest source of capital for entrepreneurs is from: