Question 1

Due to their size large businesses tend to have greater flexibility than small businesses.

Accepted Answer

A) True 
 B)False

Question 2

In buying an existing business, the prospective buyer should ask questions about the operation of the business.Which of the following would be an appropriate question to ask?

Accepted Answer

A) Is the business operating at a profit? 
B) Why are you selling? 
C) Are there any problems with the business? 
D) Will the customers stay with the business? 
E) All of the above are appropriate questions to ask. 
A) Is the business operating at a profit? 
B) Why are you selling? 
C) Are there any problems with the business? 
D) Will the customers stay with the business? 
E) All of the above are appropriate questions to ask.

Question 3

Direct Small Business Administration (SBA) loans are made from funds set aside each year by Congress.

Accepted Answer

A) True 
 B)False

Question 4

An ______ is a person who takes the risk of starting and operating a business.

Accepted Answer

The answer of An ______ is a person who takes...

Question 5

The first step in starting your own business is the creation of a unique marketable idea.

Accepted Answer

A) True 
 B)False

Question 6

A common use of business plans is to:

Accepted Answer

A) comply with SEC regulations 
B) persuade lenders and investors to finance the venture 
C) persuade customers to buy the new product or service 
D) use as a recruitment tool 
E) showcase innovative factors to production to make the company a success 
A) comply with SEC regulations 
B) persuade lenders and investors to finance the venture 
C) persuade customers to buy the new product or service 
D) use as a recruitment tool 
E) showcase innovative factors to production to make the company a success

Question 7

One of the reasons small businesses continue to thrive in the United States is outsourcing.

Accepted Answer

A) True 
 B)False

Question 8

One way to ease the burden of managing a business is to hire an outside consultant.Which of the following is an example of an outside consultant that might be useful to a small interior design company?

Accepted Answer

A) a company to mail its brochures to building contractors within a 200 mile area 
B) an advertising company to design its ad in the local newspaper 
C) a certified public accountant to manage its money 
D) an attorney who is well-versed in small business law 
E) all of the above 
A) a company to mail its brochures to building contractors within a 200 mile area 
B) an advertising company to design its ad in the local newspaper 
C) a certified public accountant to manage its money 
D) an attorney who is well-versed in small business law 
E) all of the above

Question 9

Entrepreneurs, as a general group, dislike risk taking.

Accepted Answer

A) True 
 B)False

Question 10

Jeff Arnold and Reggie Bradford created WebMD, an Internet provider of health care information.During the development of this high-growth company, Arnold and Bradford attracted a group of investors who purchased stock in their company and provided them with ______ financing.

Accepted Answer

A) debt 
B) liquid 
C) equity 
D) venture 
E) entrepreneurial 
A) debt 
B) liquid 
C) equity 
D) venture 
E) entrepreneurial

Question 11

Once small businesses hire employees, they can _____ to increase job satisfaction and retain their employees.

Accepted Answer

A) provide comfortable working conditions 
B) offer flexible working hours 
C) provide employee benefit programs 
D) share profits with employees 
E) do all of the above 
A) provide comfortable working conditions 
B) offer flexible working hours 
C) provide employee benefit programs 
D) share profits with employees 
E) do all of the above

Question 12

What is the first step for starting a new business?

Accepted Answer

a self-assessment to determine

Question 13

Emily Millou is planning to open a bed & breakfast inn.To borrow money from the bank, she should prepare a ______, a formal, written plan that discloses details about her product, markets, competition, and financial status.

Accepted Answer

The answer of Emily Millou is planning to open a...

Question 14

One of the advantages of owning a small business is:

Accepted Answer

A) flexibility 
B) no taxes 
C) interest-free loans 
D) guaranteed profit 
E) all of the above 
A) flexibility 
B) no taxes 
C) interest-free loans 
D) guaranteed profit 
E) all of the above

Question 15

The difference between the small business owner and the entrepreneur is that the entrepreneur:

Accepted Answer

A) manages the business 
B) files taxes for the business 
C) assumes the risk of the business 
D) is responsible for the profits of the business 
E) is accurately described by all of the above 
A) manages the business 
B) files taxes for the business 
C) assumes the risk of the business 
D) is responsible for the profits of the business 
E) is accurately described by all of the above

Question 16

What does the hopeful entrepreneur do once he or she has finished the business plan?

Accepted Answer

The answer of What does the hopeful entrepreneur do once...

Question 17

In the past few years, the federal government has cut back burdensome government regulations and paperwork to the point that they are almost non-existent for small business owners.

Accepted Answer

A) True 
 B)False

Question 18

When Allison Logue found out her children were allergic to corn, she started looking for sweets and starches that were corn-free and was dismayed to find very few such products on the market.As a result, she has started her own small business to produce and market corn-free desserts.It is a small market, and Logue plans to keep her business small.Logue is an example of a(n):

Accepted Answer

A) interpreneur 
B) multipreneur 
C) intrapreneur 
D) growth entrepreneur 
E) micropreneur 
A) interpreneur 
B) multipreneur 
C) intrapreneur 
D) growth entrepreneur 
E) micropreneur

Question 19

The most common use of a business plan is to persuade lenders and investors to finance the venture.

Accepted Answer

A) True 
 B)False

Question 20

Michael Bronner made a fortune in the direct marketing business as the cofounder and CEO of Bronner Slosberg Humphrey, a wildly successful direct-marketing firm.His newest venture, Upromise Inc., enlists some of America's largest corporations to help families pay for college and is extremely successful.Entrepreneur Bonner would more than likely have which of the following characteristics?

Accepted Answer

A) Ambitious 
B) Independent 
C) Self-confident 
D) Visionary 
E) All of the above 
A) Ambitious 
B) Independent 
C) Self-confident 
D) Visionary 
E) All of the above

Due to their size large businesses tend to have greater flexibility than small businesses.

In buying an existing business, the prospective buyer should ask questions about the operation of the business.Which of the following would be an appropriate question to ask?

Direct Small Business Administration (SBA) loans are made from funds set aside each year by Congress.

An ______ is a person who takes the risk of starting and operating a business.

The first step in starting your own business is the creation of a unique marketable idea.

A common use of business plans is to:

One of the reasons small businesses continue to thrive in the United States is outsourcing.

One way to ease the burden of managing a business is to hire an outside consultant.Which of the following is an example of an outside consultant that might be useful to a small interior design company?

Entrepreneurs, as a general group, dislike risk taking.

Jeff Arnold and Reggie Bradford created WebMD, an Internet provider of health care information.During the development of this high-growth company, Arnold and Bradford attracted a group of investors who purchased stock in their company and provided them with ______ financing.

Once small businesses hire employees, they can _____ to increase job satisfaction and retain their employees.

What is the first step for starting a new business?

Emily Millou is planning to open a bed & breakfast inn.To borrow money from the bank, she should prepare a ______, a formal, written plan that discloses details about her product, markets, competition, and financial status.

One of the advantages of owning a small business is:

The difference between the small business owner and the entrepreneur is that the entrepreneur:

What does the hopeful entrepreneur do once he or she has finished the business plan?

In the past few years, the federal government has cut back burdensome government regulations and paperwork to the point that they are almost non-existent for small business owners.

The most common use of a business plan is to persuade lenders and investors to finance the venture.

Understanding Economic Systems and Business

Making Ethical Decisions and Managing a Socially Responsible Business

Competing in the Global Marketplace

Forms of Business Ownership

Management and Leadership in Todays Organizations

Designing Organizational Structures

Managing Human Resources and Labor Relations

Motivating Employees

Achieving World-Class Operations Management

Creating Products and Pricing Strategies to Meet Customers Needs

Distributing and Promoting Products and Services

Using Technology to Manage Information

Using Financial Information and Accounting

Understanding Money and Financial Institutions

Understanding Financial Management and Securities Markets

Your Career in Business

Filters

Exam 5: Entrepreneurship: Starting and Managing Your Own Business

Due to their size large businesses tend to have greater flexibility than small businesses.

In buying an existing business, the prospective buyer should ask questions about the operation of the business.Which of the following would be an appropriate question to ask?

Direct Small Business Administration (SBA) loans are made from funds set aside each year by Congress.

An ______ is a person who takes the risk of starting and operating a business.

The first step in starting your own business is the creation of a unique marketable idea.

A common use of business plans is to:

One of the reasons small businesses continue to thrive in the United States is outsourcing.

One way to ease the burden of managing a business is to hire an outside consultant.Which of the following is an example of an outside consultant that might be useful to a small interior design company?

Entrepreneurs, as a general group, dislike risk taking.

Jeff Arnold and Reggie Bradford created WebMD, an Internet provider of health care information.During the development of this high-growth company, Arnold and Bradford attracted a group of investors who purchased stock in their company and provided them with ______ financing.

Once small businesses hire employees, they can _____ to increase job satisfaction and retain their employees.

What is the first step for starting a new business?

Emily Millou is planning to open a bed & breakfast inn.To borrow money from the bank, she should prepare a ______, a formal, written plan that discloses details about her product, markets, competition, and financial status.

One of the advantages of owning a small business is:

The difference between the small business owner and the entrepreneur is that the entrepreneur:

What does the hopeful entrepreneur do once he or she has finished the business plan?

In the past few years, the federal government has cut back burdensome government regulations and paperwork to the point that they are almost non-existent for small business owners.

The most common use of a business plan is to persuade lenders and investors to finance the venture.

Understanding Economic Systems and Business

Making Ethical Decisions and Managing a Socially Responsible Business

Competing in the Global Marketplace

Forms of Business Ownership

Management and Leadership in Todays Organizations

Designing Organizational Structures

Managing Human Resources and Labor Relations

Motivating Employees

Achieving World-Class Operations Management

Creating Products and Pricing Strategies to Meet Customers Needs

Distributing and Promoting Products and Services

Using Technology to Manage Information

Using Financial Information and Accounting

Understanding Money and Financial Institutions

Understanding Financial Management and Securities Markets

Your Career in Business

Filters