Question 1

Since creating a detailed business plan is almost impossible,entrepreneurs should focus on the other tasks needed to get their firm started.

Accepted Answer

A) True 
 B)False

Question 2

If you have managerial skills and leadership ability,you also posses the personality to be an entrepreneur.

Accepted Answer

A) True 
 B)False

Question 3

Creative people working as entrepreneurs within a large organization are called intrapreneurs.

Accepted Answer

A) True 
 B)False

Question 4

Most business opportunities offer entrepreneurs high levels of security and profits.

Accepted Answer

A) True 
 B)False

Question 5

Due to the credit crunch during the recession of 2008,many small businesses found that _____________ were more willing to lend money to smaller operations.

Accepted Answer

A)   large corporations
B)   credit card companies
C)   international banks
D)   smaller,community banks

Question 6

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.

Question 7

Effective entrepreneurial teams combine:

Accepted Answer

A)   creativity with marketing and production experience.
B)   venture financing,tax benefits,and production economies.
C)   scientific abilities,capital investment,and marketing skills.
D)   risk tolerance,debt financing,and international experience.

Question 8

Which of the following employment statistics about small businesses is true?

Accepted Answer

A)   Small businesses create about 15% of all new jobs in the U.S.
B)   The number of women owning small businesses has remained constant.
C)   A great majority of American workers find their first jobs with a small business.
D)   Growth of minority-owned businesses in the U.S.is declining.

Question 9

Mini-Case
Peppy Roaney believes that pizza is a much more versatile dish than most people realize.As the national marketing manager for Pizza Guys,he observed how consumers were delighted with barbecue pizza,Hawaiian pizza,Mexican pizza and other unique combinations.His suggestions for other unusual pizzas,however,were met with a negative response by his superiors.Even some of his colleagues laughed at his ideas.Peppy's confidence in his ability to understand the market has led him to focus on planning a business of his own.Peppy realizes that he will take a risk when he leaves his job with Pizza Guys and embarks upon a new venture: Peppy's Pizzazzeria.Peppy is excited about the potential of profitably catering to the unmet desires of pizza consumers.
-Due to the fact that Peppy has worked in the field of marketing for a large corporation,

Accepted Answer

A)   there is no need to consider an entrepreneurial team for start-up due to the fact that all other management functions are served by marketing.
B)   he can skip any marketing research steps that the SBA recommends.
C)   he knows that the type of business he wants to start may be difficult to develop,but it has a tremendous amount of security due to its promise of long term survival.
D)   he plans to put together an entrepreneurial team of experts that will complement his expertise.

Question 10

Anna recently left a large insurance firm and opened a home-based business preparing medical transcriptions for doctors.Based on recent statistics,she can expect:

Accepted Answer

A)   a negative reaction from friends and family who wonder when she will get a "real" job.
B)   the emergence of affordable technology will make it less challenging for her to compete with larger firms offering the same service.
C)   the government will discourage her attempts to create a home-based business in the hopes that she will opt for locating in an enterprise zone.
D)   to find security,routine and a paycheck from her new enterprise.

Question 11

As an employee of a small business,DeMonte has observed the owner's desire to retire.Since DeMonte would like to buy the business,he needs to determine how much the business is worth.In order to determine a fair price for the business,DeMonte should add up the market value of all of the firm's physical assets such as buildings,machinery,equipment,and inventory,and willingly pay this amount for the business.

Accepted Answer

A) True 
 B)False

Question 12

The goal of an intrapreneur is:

Accepted Answer

A)   to improve quality control in a corporation's production process.
B)   to develop new products and generate new profits for the corporation.
C)   to implement cost control policies for existing products.
D)   to create smaller companies within larger companies.

Question 13

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.

Question 14

The primary concern of micropreneurs is to balance the risk of starting your own business with the desire to build a powerful organization earning significant profits.

Accepted Answer

A) True 
 B)False

Question 15

The Small Business Administration defines a small business as a firm that:

Accepted Answer

A)   has fewer than 100 partners.
B)   is independently owned but not dominant in its industry.
C)   is dominant in its industry,but small in the number of workers it employs.
D)   has annual receipts of more than a specified amount depending upon the industry.

Question 16

As their firms grow and prosper,busy entrepreneurs take pleasure in delegating authority to others.

Accepted Answer

A) True 
 B)False

Question 17

A detailed written statement that describes the nature of the business,the target market,the firm's competitive advantages,as well as the owner's resources and qualifications is a:

Accepted Answer

A)   business plan.
B)   entrepreneurial mission statement.
C)   profit and loss statement.
D)   professional action plan.

Question 18

If you go through the exercise of preparing a business plan,only to determine that you need twice the amount of money to start the business than you have,the SBA and other expert organizations encourage you to go ahead with your plans because if you understand the market,you can use the revenues you accrue to make-up the short-fall.

Accepted Answer

A) True 
 B)False

Question 19

Micropreneurs are motivated by a desire to have both a satisfying family life and rewarding work.

Accepted Answer

A) True 
 B)False

Question 20

According to the Small Business Administration's definition,small businesses are independently owned and operated.

Accepted Answer

A) True 
 B)False

Exam 6: Entrepreneurship and Starting a Small Business

Correct Answer
verified

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

Correct Answer
verified

The Small Business Administration defines a small business as a firm that:

Correct Answer
verified

If you have managerial skills and leadership ability,you also posses the personality to be an entrepreneur.

Correct Answer
verified

Correct Answer
verified

As their firms grow and prosper,busy entrepreneurs take pleasure in delegating authority to others.

Correct Answer
verified

Micropreneurs are motivated by a desire to have both a satisfying family life and rewarding work.

Correct Answer
verified

Most business opportunities offer entrepreneurs high levels of security and profits.

Correct Answer
verified

The primary concern of micropreneurs is to balance the risk of starting your own business with the desire to build a powerful organization earning significant profits.

Correct Answer
verified

Effective entrepreneurial teams combine:

Correct Answer
verified

A detailed written statement that describes the nature of the business,the target market,the firm's competitive advantages,as well as the owner's resources and qualifications is a:

Correct Answer
verified

Creative people working as entrepreneurs within a large organization are called intrapreneurs.

Correct Answer
verified

According to the Small Business Administration's definition,small businesses are independently owned and operated.

Correct Answer
verified

Anna recently left a large insurance firm and opened a home-based business preparing medical transcriptions for doctors.Based on recent statistics,she can expect:

Correct Answer
verified

Correct Answer
verified

Due to the credit crunch during the recession of 2008,many small businesses found that _____________ were more willing to lend money to smaller operations.

Correct Answer
verified

Which of the following employment statistics about small businesses is true?

Correct Answer
verified

Since creating a detailed business plan is almost impossible,entrepreneurs should focus on the other tasks needed to get their firm started.

Correct Answer
verified

The goal of an intrapreneur is:

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

Exam 6: Entrepreneurship and Starting a Small Business

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The Small Business Administration defines a small business as a firm that:

Correct AnswerverifiedShow Answer

If you have managerial skills and leadership ability,you also posses the personality to be an entrepreneur.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

As their firms grow and prosper,busy entrepreneurs take pleasure in delegating authority to others.

Correct AnswerverifiedShow Answer

Micropreneurs are motivated by a desire to have both a satisfying family life and rewarding work.

Correct AnswerverifiedShow Answer

Most business opportunities offer entrepreneurs high levels of security and profits.

Correct AnswerverifiedShow Answer

The primary concern of micropreneurs is to balance the risk of starting your own business with the desire to build a powerful organization earning significant profits.

Correct AnswerverifiedShow Answer

Effective entrepreneurial teams combine:

Correct AnswerverifiedShow Answer

A detailed written statement that describes the nature of the business,the target market,the firm's competitive advantages,as well as the owner's resources and qualifications is a:

Correct AnswerverifiedShow Answer

Creative people working as entrepreneurs within a large organization are called intrapreneurs.

Correct AnswerverifiedShow Answer

According to the Small Business Administration's definition,small businesses are independently owned and operated.

Correct AnswerverifiedShow Answer

Anna recently left a large insurance firm and opened a home-based business preparing medical transcriptions for doctors.Based on recent statistics,she can expect:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Due to the credit crunch during the recession of 2008,many small businesses found that _____________ were more willing to lend money to smaller operations.

Correct AnswerverifiedShow Answer

Which of the following employment statistics about small businesses is true?

Correct AnswerverifiedShow Answer

Since creating a detailed business plan is almost impossible,entrepreneurs should focus on the other tasks needed to get their firm started.

Correct AnswerverifiedShow Answer

The goal of an intrapreneur is:

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 Answer
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