Question 1

Large organizations encourage intrapreneurship as a strategy to improve their profitability through new products.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements accurately depicts an advantage that small business has over big business?

Accepted Answer

A)   If the small business owner can project his business as being big, if not very similar to big businesses that sell in the same industry, then he will realize a significant advantage.
B)   The size of the business (small being better in this case)  is an important consideration in the management of legal, payroll, and tax concerns.
C)   A small business can maneuver and change quicker than most large businesses can. It can react to market conditions and customer concerns much faster.
D)   The slower pace of small businesses translates into better quality for its customers.

Question 3

Amir hopes to start his own business someday. He should not talk to other small business owners about his plans because they might steal his ideas.

Accepted Answer

A) True 
 B)False

Question 4

Entrepreneurship is

Accepted Answer

A)   managing businesses for others.
B)   a controlling interest in the ownership of a corporation.
C)   managing businesses that operate in multiple countries.
D)   accepting the risk of starting and running a business.

Question 5

A National Business Incubator Association study indicates that over 85 percent of incubator graduates remain in business.

Accepted Answer

A) True 
 B)False

Question 6

If you are trying to prevent failure, it is a good idea to go into the business with good record-keeping techniques.

Accepted Answer

A) True 
 B)False

Question 7

Conversations with people who start their own business often reveal that

Accepted Answer

A)   many small business owners got their entrepreneurial idea from a previous job.
B)   it is unusual for experienced corporate managers to start their own businesses.
C)   the most successful entrepreneurs often start their business ventures right after high school.
D)   most small business owners begin with significant personal wealth.

Question 8

With fewer employees and less revenue, small businesses have less need for detailed records than do larger business organizations.

Accepted Answer

A) True 
 B)False

Question 9

Entrepreneurs learn that there are many legal and financial issues involved in starting their business. The best way for the small business owner to resolve these issues and protect the firm's resources is

Accepted Answer

A)   for the owner(s)  to trust his/her common sense.
B)   hire a full-time lawyer and accountant who work exclusively for the small business.
C)   defer making decisions regarding these issues until the company is bigger.
D)   seek and pay for expert guidance and assistance.

Question 10

Getting a business plan into the hands of the right people is nearly as important as getting the right information in the plan.

Accepted Answer

A) True 
 B)False

Question 11

Business incubators are usually government-funded facilities intended to

Accepted Answer

A)   provide health care benefits for small business owners and their families.
B)   offer start-up firms low-cost office space and basic business services.
C)   help rebuild the nation's infrastructure.
D)   assist foreign investors in identifying business opportunities in the U.S.

Question 12

Which of the following best describes the outlook for small businesses in international markets?

Accepted Answer

A)   The world is a larger, and potentially a more lucrative market than the U.S. domestic market.
B)   The threat of terrorist activities prevents small businesses from competing internationally.
C)   Most foreign buyers prefer to deal with large, well-known corporations rather than small businesses.
D)   Higher business costs eliminate the profit opportunities in global markets.

Question 13

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.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A)   large multinational banks.
B)   the Small Business Administration.
C)   state and local governments.
D)   friends and family.

Question 15

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 16

As the owner of a small manufacturing business, Finn has an interest in exporting. However, he doesn't know how to get started. Fortunately, the government provides an abundance of information to encourage entrepreneurs like Finn.

Accepted Answer

A) True 
 B)False

Question 17

Although corporate managers often exhibit the skills required of successful entrepreneurs, they seldom have the desire to give up the perks and fringe benefits of corporate life and start their own business.

Accepted Answer

A) True 
 B)False

Question 18

Hoping to qualify for a Small Business Administration microloan, Aliana's business plan clearly pinpoints her strategy to gainfully serve her target market. Unfortunately, her lack of business experience and limited collateral greatly reduce her chances of obtaining the microloan.

Accepted Answer

A) True 
 B)False

Question 19

Many micropreneurs operate home-based businesses in the service industry.

Accepted Answer

A) True 
 B)False

Question 20

As an employee of a small business, Dante has heard the owner is getting ready to retire. Since Dante 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, Dante 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

Exam 6: Entrepreneurship and Starting a Small Business

Although corporate managers often exhibit the skills required of successful entrepreneurs, they seldom have the desire to give up the perks and fringe benefits of corporate life and start their own business.

Correct Answer
verified

If you are trying to prevent failure, it is a good idea to go into the business with good record-keeping techniques.

Correct Answer
verified

With fewer employees and less revenue, small businesses have less need for detailed records than do larger business organizations.

Correct Answer
verified

Amir hopes to start his own business someday. He should not talk to other small business owners about his plans because they might steal his ideas.

Correct Answer
verified

Correct Answer
verified

Getting a business plan into the hands of the right people is nearly as important as getting the right information in the plan.

Correct Answer
verified

Conversations with people who start their own business often reveal that

Correct Answer
verified

Hoping to qualify for a Small Business Administration microloan, Aliana's business plan clearly pinpoints her strategy to gainfully serve her target market. Unfortunately, her lack of business experience and limited collateral greatly reduce her chances of obtaining the microloan.

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

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.

Correct Answer
verified

As the owner of a small manufacturing business, Finn has an interest in exporting. However, he doesn't know how to get started. Fortunately, the government provides an abundance of information to encourage entrepreneurs like Finn.

Correct Answer
verified

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

Correct Answer
verified

Entrepreneurs learn that there are many legal and financial issues involved in starting their business. The best way for the small business owner to resolve these issues and protect the firm's resources is

Correct Answer
verified

Entrepreneurship is

Correct Answer
verified

Which of the following best describes the outlook for small businesses in international markets?

Correct Answer
verified

Many micropreneurs operate home-based businesses in the service industry.

Correct Answer
verified

Large organizations encourage intrapreneurship as a strategy to improve their profitability through new products.

Correct Answer
verified

Business incubators are usually government-funded facilities intended to

Correct Answer
verified

Which of the following statements accurately depicts an advantage that small business has over big business?

Correct Answer
verified

A National Business Incubator Association study indicates that over 85 percent of incubator graduates remain in business.

Correct Answer
verified

Exam 6: Entrepreneurship and Starting a Small Business

Although corporate managers often exhibit the skills required of successful entrepreneurs, they seldom have the desire to give up the perks and fringe benefits of corporate life and start their own business.

Correct AnswerverifiedShow Answer

If you are trying to prevent failure, it is a good idea to go into the business with good record-keeping techniques.

Correct AnswerverifiedShow Answer

With fewer employees and less revenue, small businesses have less need for detailed records than do larger business organizations.

Correct AnswerverifiedShow Answer

Amir hopes to start his own business someday. He should not talk to other small business owners about his plans because they might steal his ideas.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Getting a business plan into the hands of the right people is nearly as important as getting the right information in the plan.

Correct AnswerverifiedShow Answer

Conversations with people who start their own business often reveal that

Correct AnswerverifiedShow Answer

Hoping to qualify for a Small Business Administration microloan, Aliana's business plan clearly pinpoints her strategy to gainfully serve her target market. Unfortunately, her lack of business experience and limited collateral greatly reduce her chances of obtaining the microloan.

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

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.

Correct AnswerverifiedShow Answer

As the owner of a small manufacturing business, Finn has an interest in exporting. However, he doesn't know how to get started. Fortunately, the government provides an abundance of information to encourage entrepreneurs like Finn.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Entrepreneurs learn that there are many legal and financial issues involved in starting their business. The best way for the small business owner to resolve these issues and protect the firm's resources is

Correct AnswerverifiedShow Answer

Entrepreneurship is

Correct AnswerverifiedShow Answer

Which of the following best describes the outlook for small businesses in international markets?

Correct AnswerverifiedShow Answer

Many micropreneurs operate home-based businesses in the service industry.

Correct AnswerverifiedShow Answer

Large organizations encourage intrapreneurship as a strategy to improve their profitability through new products.

Correct AnswerverifiedShow Answer

Business incubators are usually government-funded facilities intended to

Correct AnswerverifiedShow Answer

Which of the following statements accurately depicts an advantage that small business has over big business?

Correct AnswerverifiedShow Answer

A National Business Incubator Association study indicates that over 85 percent of incubator graduates remain in business.

Correct AnswerverifiedShow Answer

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