Question 1

A small business

Accepted Answer

A)   is publicly owned.
B)   creates jobs faster than big businesses.
C)   has less than 100 employees.
D)   is easily discernible from a big business.
E)   has sales so small it cannot influence its environment.

Question 2

Which of the following statements comparing small businesses to large businesses is FALSE?

Accepted Answer

A)   More new jobs are created by small than by large businesses.
B)   Large businesses show better financial performance than small businesses.
C)   Small businesses represent the majority of new businesses started each year.
D)   Small businesses can typically produce and deliver specialty products more efficiently than large businesses.
E)   Small businesses outnumber large businesses by nearly 100 to 1.

Question 3

Describe the four major types of information presented in a business plan.

Accepted Answer

The four major types of information pres...

Question 4

Professional managers, whose job is running someone else's business, are entrepreneurs.

Accepted Answer

A) True 
 B)False

Question 5

If an entrepreneur were considering a new business, which of the following would be a DESIRABLE characteristic of the industry being considered?

Accepted Answer

A)   Several companies are engaged in highly competitive advertising, which indicates that the product is desirable.
B)   The new company will sell a newly patented invention that is not yet well known but is expected to dominate the market.
C)   Start-up costs are high, so only a few companies are in business.
D)   The new company will be able to sell only to selected buyers.
E)   Customers have substitute products from which to choose if the new company cannot produce the products as rapidly as needed.

Question 6

Whisper Systems developed encryption systems that were efficient and without error. No other company had that ability.  Twitter Inc. bought Whisper Systems primarily so it could improve it's security.  Whisper Systems was a

Accepted Answer

A)   retail business.
B)   company with a first-mover advantage.
C)   manufacturing business.
D)   strategy imitator.
E)   product assimilator.

Question 7

Service businesses are the fastest growing segment of small-business enterprises primarily because of

Accepted Answer

A)   low labor requirements.
B)   lack of owner commitment.
C)   favorable tax treatment.
D)   high market demand.
E)   size of initial capital investment required.

Question 8

The business plan should describe the match between the entrepreneur's abilities and the requirements for producing and marketing a particular product or service.

Accepted Answer

A) True 
 B)False

Question 9

What is the most common source of funds for entrepreneurs?

Accepted Answer

A)   Bank loans
B)   Money from venture capitalists
C)   Personal financial resources
D)   Issuing stock in the business
E)   Forming strategic alliances

Question 10

The risks of starting a business from scratch are less than those of buying an existing firm.

Accepted Answer

A) True 
 B)False

Question 11

Most U.S. workers are employed by large firms.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is an example of a first-mover advantage?

Accepted Answer

A)   Orange County Choppers, builders of custom motorcycles, can exploit their own reality television show.
B)   The manufacturer of Blistex lip cream, a U.S.-made product, is introduced for the first time to consumers in Europe.
C)   Coca-Cola introduces its own brand of bottled water after the success of a number of other brands of water.
D)   Kroger supermarkets add a new line of cosmetics for teens to its shelves.
E)   Purina introduces a new package design for its dog food.

Question 13

The distinctive competencies of small business usually fall into three areas. Briefly discuss each of those areas.

Accepted Answer

The distinctive competencies of small bu...

Question 14

After watching the royal wedding, Susan wants to start her own hat making company in the United States. To help her determine whether this is a good idea, she needs to find the answers to which of the following questions?

Accepted Answer

A)   Who are my customers, and where are they?
B)   Who are my competitors, and where are they?
C)   How can I differentiate my product from that of my competitors?
D)   In what quantities and at what price will my customers buy my service?
E)   All of these choices

Question 15

Four general factors contribute to the success rate of small businesses. Which of the following is NOT one of those factors?

Accepted Answer

A)   Managerial competence
B)   Luck
C)   Hard work, drive, and dedication
D)   Empathy with customers
E)   Careful analysis of market conditions

Question 16

More than any other industry, manufacturing lends itself to small business.

Accepted Answer

A) True 
 B)False

Question 17

Insead is a business school in France. Half of its alumni go on to start their own business or purchase one. Describe recent trends in small-business start-ups and how an Insead education could help an entrepreneur.

Accepted Answer

Recent trends in small-business start-up...

Question 18

The text lists several questions that the business plan should answer for the entrepreneur who is planning to open a business. Which of the following is one of the questions?

Accepted Answer

A)   What does she or he want to accomplish?
B)   What financing is available?
C)   What is the demand for the product/service?
D)   What is the most effective production strategy?
E)   What does the competitive situation look like?

Question 19

In which of the following industries are you most likely to find small business success?

Accepted Answer

A)   Retailing
B)   Department store retailing
C)   Wholesaling
D)   Airline
E)   Manufacturing

Question 20

Which of the following is NOT a source of management advice for an entrepreneur?

Accepted Answer

A)   Federal Trade Commission (FT
C)  
B)   Small Business Administration (SB
A)  
C)   Service Corps of Retired Executives (SCOR
E)  
D)   Active Corps of Executives (AC
E)  
E)   Small Business Institute (SBI)

Exam 9: Managing Start-Ups and New Ventures

Most U.S. workers are employed by large firms.

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If an entrepreneur were considering a new business, which of the following would be a DESIRABLE characteristic of the industry being considered?

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Describe the four major types of information presented in a business plan.

Correct AnswerAnswered by ExamLex AIThe four major types of information pres...View AnswerShow Answer

Service businesses are the fastest growing segment of small-business enterprises primarily because of

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The text lists several questions that the business plan should answer for the entrepreneur who is planning to open a business. Which of the following is one of the questions?

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Whisper Systems developed encryption systems that were efficient and without error. No other company had that ability. Twitter Inc. bought Whisper Systems primarily so it could improve it's security. Whisper Systems was a

Correct AnswerverifiedShow Answer

Which of the following statements comparing small businesses to large businesses is FALSE?

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A small business

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What is the most common source of funds for entrepreneurs?

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In which of the following industries are you most likely to find small business success?

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The risks of starting a business from scratch are less than those of buying an existing firm.

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Professional managers, whose job is running someone else's business, are entrepreneurs.

Correct AnswerverifiedShow Answer

Four general factors contribute to the success rate of small businesses. Which of the following is NOT one of those factors?

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The business plan should describe the match between the entrepreneur's abilities and the requirements for producing and marketing a particular product or service.

Correct AnswerverifiedShow Answer

The distinctive competencies of small business usually fall into three areas. Briefly discuss each of those areas.

Correct AnswerAnswered by ExamLex AIThe distinctive competencies of small bu...View AnswerShow Answer

Which of the following is NOT a source of management advice for an entrepreneur?

Correct AnswerverifiedShow Answer

After watching the royal wedding, Susan wants to start her own hat making company in the United States. To help her determine whether this is a good idea, she needs to find the answers to which of the following questions?

Correct AnswerverifiedShow Answer

Which of the following is an example of a first-mover advantage?

Correct AnswerverifiedShow Answer

Insead is a business school in France. Half of its alumni go on to start their own business or purchase one. Describe recent trends in small-business start-ups and how an Insead education could help an entrepreneur.

Correct AnswerAnswered by ExamLex AIRecent trends in small-business start-up...View AnswerShow Answer

More than any other industry, manufacturing lends itself to small business.

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The four major types of information pres...
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Answered by ExamLex AI
The distinctive competencies of small bu...
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Answered by ExamLex AI
Recent trends in small-business start-up...
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