Question 1

Small business start-ups are likely to find that getting commercial loans are:

Accepted Answer

A)  difficult because lenders are reluctant to give loans to firms that do not have a track record. 
B)  one of the most flexible ways of obtaining financing because local bankers are usually eager to establish relationships with new companies. 
C)  the most difficult because start-ups require higher financing than what banks can offer. 
D)  the best way to obtain all the financing they need as lenders usually get an ownership stake in the companies. 
A)  difficult because lenders are reluctant to give loans to firms that do not have a track record. 
B)  one of the most flexible ways of obtaining financing because local bankers are usually eager to establish relationships with new companies. 
C)  the most difficult because start-ups require higher financing than what banks can offer. 
D)  the best way to obtain all the financing they need as lenders usually get an ownership stake in the companies.

Question 2

Which of the following is a threat that a small business is most likely to face?

Accepted Answer

A)  Unavailability of technology 
B)  Incompetent customer service 
C)  High risk of failure 
D)  High overhead costs 
A)  Unavailability of technology 
B)  Incompetent customer service 
C)  High risk of failure 
D)  High overhead costs

Question 3

In the context of the U.S. economy, which of the following statements is true of small businesses?

Accepted Answer

A)  They are less likely to develop revolutionary new ideas. 
B)  They have a wider span of control than large businesses. 
C)  They are often the last to contract when times are tough. 
D)  They often display a refreshing lack of bureaucracy. 
A)  They are less likely to develop revolutionary new ideas. 
B)  They have a wider span of control than large businesses. 
C)  They are often the last to contract when times are tough. 
D)  They often display a refreshing lack of bureaucracy.

Question 4

Mohit is very passionate about music and opens a recording studio of his own. However, he does not know much about running a business and within a short period, starts running into losses. Therefore, he shuts down the business. Which of the following threats is highlighted in the given scenario?

Accepted Answer

A)  Too little money 
B)  Higher health insurance costs 
C)  Bigger regulatory burden 
D)  Lack of knowledge 
A)  Too little money 
B)  Higher health insurance costs 
C)  Bigger regulatory burden 
D)  Lack of knowledge

Question 5

Identify the core questions a business plan should address.

Accepted Answer

Answers will vary. A typical business pl

Question 6

Robert started his company in his parents' garage because he could not afford to rent an office space. Most of his finances were spent on procuring the essential items to set up his company. As a result, he was able to save funds for the future. The opportunity of _____ is highlighted in the given scenario.

Accepted Answer

A)  exploiting market niches 
B)  using technology 
C)  having lower overhead costs 
D)  providing personal customer service 
A)  exploiting market niches 
B)  using technology 
C)  having lower overhead costs 
D)  providing personal customer service

Question 7

Richard, an employee in an investment firm, was dissatisfied with the way his superiors handled business dealings. For that reason, he quit his job and started his own business so that he is able to make all management decisions without interference from anyone. Which advantage of entrepreneurship is highlighted in the given scenario?

Accepted Answer

A)  Greater financial success 
B)  Independence 
C)  Uniformity 
D)  Greater challenge 
A)  Greater financial success 
B)  Independence 
C)  Uniformity 
D)  Greater challenge

Question 8

According to the U.S. Small Business Administration (SBA), to officially count as "small," _____.

Accepted Answer

A)  a business should have at least 500 employees, excluding the self-employed 
B)  the average revenue of a business should range from $0.75 million to $28.5 million 
C)  the number of employees of a business should range from fewer than 50 to 100 
D)  the average revenue of a business should be between $30 million and $40 million 
A)  a business should have at least 500 employees, excluding the self-employed 
B)  the average revenue of a business should range from $0.75 million to $28.5 million 
C)  the number of employees of a business should range from fewer than 50 to 100 
D)  the average revenue of a business should be between $30 million and $40 million

Question 9

For research purposes, the U.S. Small Business Administration (SBA) defines small business as companies with up to 1000 employees.

Accepted Answer

A) True 
 B)False

Question 10

Herbert gained most of the capital for his new start-up project by posting a small demonstration of his product on a website that he created especially for the project. Many people showed genuine interest in his product and donated money to help him launch it. In the given scenario, Herbert:

Accepted Answer

A)  received money for his venture through crowdfunding. 
B)  received money for his venture from angel investors. 
C)  was able to fund his project through venture capital. 
D)  was able to fund his project through seed money. 
A)  received money for his venture through crowdfunding. 
B)  received money for his venture from angel investors. 
C)  was able to fund his project through venture capital. 
D)  was able to fund his project through seed money.

Small business start-ups are likely to find that getting commercial loans are:

Which of the following is a threat that a small business is most likely to face?

In the context of the U.S. economy, which of the following statements is true of small businesses?

Mohit is very passionate about music and opens a recording studio of his own. However, he does not know much about running a business and within a short period, starts running into losses. Therefore, he shuts down the business. Which of the following threats is highlighted in the given scenario?

Identify the core questions a business plan should address.

According to the U.S. Small Business Administration (SBA), to officially count as "small," _____.

For research purposes, the U.S. Small Business Administration (SBA) defines small business as companies with up to 1000 employees.

Herbert gained most of the capital for his new start-up project by posting a small demonstration of his product on a website that he created especially for the project. Many people showed genuine interest in his product and donated money to help him launch it. In the given scenario, Herbert:

Business Now: Change Is the Only Constant

Economics: The Framework of Business

The World Marketplace: Business Without Borders

Business Ethics Social Responsibility: Doing Well by Doing Good

Business Communication: Creating Delivering Messages That Matter

Business Formation: Choosing the Form That Fits

Accounting: Decision Making by the Numbers

Finance: Acquiring Using Funds to Maximize Value

Securities Markets: Trading Financial Resources

Marketing: Building Profitable Customer Connections

Product and Promotion: Creating and Communicating Value

Distribution and Pricing: Right Product, Right Person, Right Place, Right Price

Management, Motivation, and Leadership: Bringing Business to Life

Human Resource Management: Building a Top Quality Workforce

Managing Information Technology: Finding New Ways to Learn and Link

Operations Management: Putting It All Together

Appendix :personal-Finance-Appendix

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Exam 7: Small Business Entrepreneurship: Economic Rocket Fuel

Small business start-ups are likely to find that getting commercial loans are:

Which of the following is a threat that a small business is most likely to face?

In the context of the U.S. economy, which of the following statements is true of small businesses?

Mohit is very passionate about music and opens a recording studio of his own. However, he does not know much about running a business and within a short period, starts running into losses. Therefore, he shuts down the business. Which of the following threats is highlighted in the given scenario?

Identify the core questions a business plan should address.

According to the U.S. Small Business Administration (SBA), to officially count as "small," _____.

For research purposes, the U.S. Small Business Administration (SBA) defines small business as companies with up to 1000 employees.

Herbert gained most of the capital for his new start-up project by posting a small demonstration of his product on a website that he created especially for the project. Many people showed genuine interest in his product and donated money to help him launch it. In the given scenario, Herbert:

Business Now: Change Is the Only Constant

Economics: The Framework of Business

The World Marketplace: Business Without Borders

Business Ethics Social Responsibility: Doing Well by Doing Good

Business Communication: Creating Delivering Messages That Matter

Business Formation: Choosing the Form That Fits

Accounting: Decision Making by the Numbers

Finance: Acquiring Using Funds to Maximize Value

Securities Markets: Trading Financial Resources

Marketing: Building Profitable Customer Connections

Product and Promotion: Creating and Communicating Value

Distribution and Pricing: Right Product, Right Person, Right Place, Right Price

Management, Motivation, and Leadership: Bringing Business to Life

Human Resource Management: Building a Top Quality Workforce

Managing Information Technology: Finding New Ways to Learn and Link

Operations Management: Putting It All Together

Appendix :personal-Finance-Appendix

Filters