Question 1

Which of the following helps entrepreneurs gain skills that are essential for running a business?

Accepted Answer

A)   ESOP
B)   SBICs
C)   SEC
D)   LLC
E)   SBA

Question 2

Which of the following,if true about the owners' plan for the new business,would weaken the case that it should be registered as an LLC?

Accepted Answer

A)   They want the company to maintain its current membership.
B)   They do not want to be liable for the company's debts.
C)   They want the company's funding to come from shareholders.
D)   They want to set the management details in advance.
E)   They want the company to be registered both federally and with the state.

Question 3

Why is it difficult to compare relative job growth for different-sized businesses?

Accepted Answer

A)   Sourcing up-to-date employment figures is difficult.
B)   Many small businesses experience rapid unreported growth.
C)   Spheres of influence overlap between the small and big business sectors.
D)   Staff size of small businesses tends to change faster than staff size of big businesses.
E)   It is hard to determine the cutoff point at which a small business becomes a large business.

Question 4

The failure rate among small businesses has been increasing in recent years.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following industry groups is the fastest growing segment of small business enterprise?

Accepted Answer

A)   manufacturing
B)   wholesaling
C)   retailing
D)   transportation
E)   services

Question 6

The Small Business Administration is the government agency charged with owning small businesses.

Accepted Answer

A) True 
 B)False

Question 7

Which form of business ownership generates the MOST sales in the United States?

Accepted Answer

A)   sole proprietorship
B)   general partnership
C)   cooperative
D)   corporation
E)   limited partnership

Question 8

Which of the following types of venue is favored by small-business retailers?

Accepted Answer

A)   superstore
B)   catalog showroom
C)   specialty shop
D)   department store
E)   studio workroom

Question 9

Why are lenders most willing to loan to corporations?

Accepted Answer

A)   Continuity and legal status are assured.
B)   Links with owners and founders are established.
C)   Professional management teams can be changed.
D)   Commitment to expansion is readily available.
E)   Brand and marketing strategies can be diversified.

Question 10

A business plan demonstrates how an entrepreneur's business strategy will be implemented.

Accepted Answer

A) True 
 B)False

Question 11

What is a small business?

Accepted Answer

A small business is an independently own...

Question 12

What is the MOST significant disadvantage of owning a franchise?

Accepted Answer

A)   start-up costs
B)   operational guidelines
C)   difficulty obtaining loans
D)   double taxation
E)   competition

Question 13

What do both sole proprietorships and partnerships lack?

Accepted Answer

A)   trust
B)   legal standing
C)   continuity
D)   shared vision
E)   adaptable processes

Question 14

Corporations enjoy significant tax benefits when compared to sole proprietorships or partnerships.

Accepted Answer

A) True 
 B)False

Question 15

Small-business investment companies (SBICs)may be sponsored by the federal government.

Accepted Answer

A) True 
 B)False

Question 16

What does a start-up company need in order to estimate the required size of a plant,store,or office,to decide how much inventory to carry,and to determine how many employees to hire?

Accepted Answer

A)   sales forecast
B)   tax estimate
C)   business objective
D)   stock options
E)   funding source

Question 17

Which of the following,if true,would weaken the case for Short and Shearer's starting a new business?

Accepted Answer

A)   Starting a new business allows an entrepreneur to determine their own working hours.
B)   Starting a new business allows an entrepreneur to establish their own clientele.
C)   Starting a new business allows an entrepreneur to use their own ideas.
D)   Starting a new business gives a potential for a feeling of great accomplishment.
E)   Starting a new business involves using an untested business model.

Question 18

Loans are the most important sources of money for new businesses.

Accepted Answer

A) True 
 B)False

Question 19

What is an entrepreneur?

Accepted Answer

An entrepreneur is a business person who...

Question 20

General partnerships generate more than one-third of total sales revenue in the United States.

Accepted Answer

A) True 
 B)False

Exam 3: Entrepreneurship, New Ventures, and Business Ownership

General partnerships generate more than one-third of total sales revenue in the United States.

Correct AnswerverifiedShow Answer

What is a small business?

Correct AnswerverifiedA small business is an independently own...View AnswerShow Answer

The Small Business Administration is the government agency charged with owning small businesses.

Correct AnswerverifiedShow Answer

Why is it difficult to compare relative job growth for different-sized businesses?

Correct AnswerverifiedShow Answer

A business plan demonstrates how an entrepreneur's business strategy will be implemented.

Correct AnswerverifiedShow Answer

Loans are the most important sources of money for new businesses.

Correct AnswerverifiedShow Answer

Which of the following industry groups is the fastest growing segment of small business enterprise?

Correct AnswerverifiedShow Answer

Which of the following,if true,would weaken the case for Short and Shearer's starting a new business?

Correct AnswerverifiedShow Answer

Why are lenders most willing to loan to corporations?

Correct AnswerverifiedShow Answer

The failure rate among small businesses has been increasing in recent years.

Correct AnswerverifiedShow Answer

Small-business investment companies (SBICs)may be sponsored by the federal government.

Correct AnswerverifiedShow Answer

What is the MOST significant disadvantage of owning a franchise?

Correct AnswerverifiedShow Answer

Which of the following types of venue is favored by small-business retailers?

Correct AnswerverifiedShow Answer

Corporations enjoy significant tax benefits when compared to sole proprietorships or partnerships.

Correct AnswerverifiedShow Answer

Which of the following,if true about the owners' plan for the new business,would weaken the case that it should be registered as an LLC?

Correct AnswerverifiedShow Answer

What do both sole proprietorships and partnerships lack?

Correct AnswerverifiedShow Answer

What is an entrepreneur?

Correct AnswerverifiedAn entrepreneur is a business person who...View AnswerShow Answer

Which of the following helps entrepreneurs gain skills that are essential for running a business?

Correct AnswerverifiedShow Answer

Which form of business ownership generates the MOST sales in the United States?

Correct AnswerverifiedShow Answer

What does a start-up company need in order to estimate the required size of a plant,store,or office,to decide how much inventory to carry,and to determine how many employees to hire?

Correct AnswerverifiedShow Answer

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A small business is an independently own...
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An entrepreneur is a business person who...
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