Exam 7: Small Business Entrepreneurship: Economic Rocket Fuel

In the context of the statistics provided by the U.S. Small Business Administration (SBA), _____.

Maurice wants to make a documentary film on the unequal distribution of money in the world and its effect on different social classes. Instead of approaching a production house, he creates a website for the project where he pitches his idea through a short video and requests the viewers to donate any amount of money to cover the production cost. In the given scenario, which of the following is Maurice using to get the capital for his film?

Priscilla is a trader of silver and diamond jewelry. Due to a recessionary trend in the industry, her business has not been making any profits for a few months. As the end of this economic trend cannot be easily ascertained, she decides to get her house mortgaged so that she can add a new line of business of trading in semi-precious stones. This financial risk appetite of Priscilla illustrates her _____ as an entrepreneur.

Identify and describe two opportunities and two threats pertaining to the success of small businesses.

Some businessmen, called necessity entrepreneurs, launch their business because they believe it is their only economic option.

Richard is a wealthy and successful businessman who is well known for financing many successful start-ups. He has earned a sizable amount of profit by providing capital to start-ups in return for a share of their profits. In the given scenario, which of the following statements is true of Richard?

A _____ is a formal document that describes a business concept, outlines core business objectives, and details strategies and timelines for achieving those objectives.

James employs an apprentice in his guitar store who gets firsthand knowledge of craftsmanship and the process involved in becoming a professional luthier. This allows James to have a reliable hand who can assist him in his work without requiring him to hire a professional luthier. It also enables him to use his financial resources on procuring high-quality materials to make the guitars. The opportunity of _____ is highlighted in the given scenario.

Which of the following statements is true of entrepreneurs who possess tolerance of failure?

Small businesses often have an advantage in foreign markets where customers want to deal directly with a company's top management.

Deborah dreams of owning a pub in the heart of the city that she lives in. Deborah has the music, ideas, and menu in place, and the funds required to start the pub. Which of the following suggestions is most likely to help Deborah realize her dream?

According to the Global Entrepreneurship Monitor (GEM), the most effective way to evaluate entrepreneurship levels is by phase. A country's total early-phase entrepreneurship rate includes the:

Julian wants to open a bakery. He uses his savings and borrows some funds from his family to start his business. In the given scenario, Julian uses _____ to fund his business.

Rosa has several creative ideas for organizing events and starts an event management company. However, with little knowledge about running a business, she is unable to handle the finance and marketing sides of the business. As a result, she faces huge losses and eventually shuts down the company. Which of the following threats is highlighted in the given scenario?

Jenifer owns a bakery that specializes in preparing extravagant wedding cakes. She is a sought-after baker because of the quality and finesse of her products. Jenifer believes that the pressure of living up to the expectations of her customers and delivering quality products always keeps her on the edge and helps her to deliver her best. Which of the following advantages of entrepreneurship is highlighted in the given scenario?

Who among the following people is most likely to become a necessity entrepreneur?

In the context of various funding options for small businesses, which of the following statements is a difference between angel investors and venture capital firms?

The nation of Rhodasia has the lowest entrepreneurship rate globally. A new government, headed by President Harold David Wengerd, aims to make the country's business environment more supportive toward burgeoning entrepreneurs. Which of the following measures should be taken to increase the entrepreneurship rate in Rhodasia?

The sense of urgency regarding entrepreneurship tends to fall when fear of failure is low. This most likely happens in countries where:

Olivia runs a spa for women. She employs only two helpers and one receptionist. This enables her to focus most of her resources on procuring products required to provide comfort and high-quality services to customers. The opportunity of _____ is highlighted in the given scenario.