Question 1

Natalie enjoyed yarn crafts so she opened a yarn and craft store in her small town.Sales have been dismal; few people visit her store.What mistake did Natalie make?

Accepted Answer

A) She overestimated what she could do. 
B) She lacked an understanding of the market. 
C) She hired mediocre people 
D) She failed to share ownership. 
A) She overestimated what she could do. 
B) She lacked an understanding of the market. 
C) She hired mediocre people 
D) She failed to share ownership. B

Question 2

Sometimes entrepreneurs spend so much time and energy building the business that relationships are destroyed.Which phrase best describes this misfortune?

Accepted Answer

A) Some sacrifices are necessary for the greater good. 
B) You've got to give a little to get a little. 
C) What goes around comes around. 
D) It's possible to score points in the wrong game. 
A) Some sacrifices are necessary for the greater good. 
B) You've got to give a little to get a little. 
C) What goes around comes around. 
D) It's possible to score points in the wrong game. D

Question 3

Which of the following types of businesses makes up the largest sector of the South African economy?

Accepted Answer

A) ​small business 
B) ​microbusiness 
C) ​lifestyle business 
D) ​attractive small organisation 
A) ​small business 
B) ​microbusiness 
C) ​lifestyle business 
D) ​attractive small organisation C

Question 4

Martin expected to build his direct sales business to the point that he can quit his day job after six months.Five months later he barely has any customers.Martin:

Accepted Answer

A) has overestimated what she can do. 
B) knows his market well. 
C) is a domineering manager. 
D) should take on a partner. 
A) has overestimated what she can do. 
B) knows his market well. 
C) is a domineering manager. 
D) should take on a partner.

Question 5

Frances convinced her aunt to invest in her day spa in exchange for a percentage of the profits.Frances is:

Accepted Answer

A) taking advantage of her aunt. 
B) capitalising on an opportunity. 
C) conserving her own resources. 
D) bootstrapping. 
A) taking advantage of her aunt. 
B) capitalising on an opportunity. 
C) conserving her own resources. 
D) bootstrapping.

Question 6

Rose operates a franchise beauty salon.Negative publicity about the effects of her beauty products has diminished her ability to grow the business.Rose has a(n):

Accepted Answer

A) high-potential venture. 
B) attractive small organisation. 
C) lifestyle business. 
D) micro-business. 
A) high-potential venture. 
B) attractive small organisation. 
C) lifestyle business. 
D) micro-business.

Question 7

Explain the advantages of a social entrepreneurship.Give an example of such a business.

Accepted Answer

A social entrepreneurship is a business

Question 8

Oscar wants everything in his restaurant to be perfect so he points out every little mistake his servers make.He has high turnover among his staff.Why?

Accepted Answer

A) Oscar is a domineering manager. 
B) Oscar is not a team player. 
C) Oscar lacks risk tolerance. 
D) Oscar does not know his market. 
A) Oscar is a domineering manager. 
B) Oscar is not a team player. 
C) Oscar lacks risk tolerance. 
D) Oscar does not know his market.

Question 9

Walter wanted to be able to make decisions about issues that directly affected his department but in his company, the managers made all the decisions.So Walter left the company and started his own business.Walter was looking for:

Accepted Answer

A) personal fulfilllment. 
B) personal satisfaction. 
C) independence. 
D) financial rewards. 
A) personal fulfilllment. 
B) personal satisfaction. 
C) independence. 
D) financial rewards.

Question 10

Sabrina has figured out how to recycle clear plastic bottles into woven fabric and has launched a new business.Sabrina is:

Accepted Answer

A) an entrepreneurial team member. 
B) a social entrepreneur. 
C) risk averse. 
D) a franchisee. 
A) an entrepreneurial team member. 
B) a social entrepreneur. 
C) risk averse. 
D) a franchisee.

Question 11

Malinda wants to start a restaurant in her city of about 50 000 people.There are already 325 restaurants in this city.Malinda's reasons include that she is a good cook who enjoys working in the kitchen and she wants to involve her three children aged 9 to 15 in the venture.She has not decided what types of foods she will offer.
If Malinda launches this business, do you think it will succeed? Why or why not? What advice would you give her?

Accepted Answer

Students may argue either position.The b

Question 12

Thabo works as a self-employed golf pro at the local country club, allowing him to spend more time with his young family.He'll never earn much but he and his family are happy.Which type of small business does Thabo have?

Accepted Answer

A) gazelle 
B) attractive small organisation 
C) microbusiness 
D) lifestyle business 
A) gazelle 
B) attractive small organisation 
C) microbusiness 
D) lifestyle business

Question 13

Ronald operates a fast-food restaurant.He is under contract to the organisation under whose name he does business.The contract limits what Ronald can do with his business.Ronald is a:

Accepted Answer

A) franchisor. 
B) franchisee. 
C) contract employee. 
D) partner in an LLC. 
A) franchisor. 
B) franchisee. 
C) contract employee. 
D) partner in an LLC.

Question 14

Most entrepreneurs work shorter hours in their own businesses than they did when working for someone else because they have no boss to report to.

Accepted Answer

A) True 
 B)False

Question 15

Explain the nature of and differences among micro-businesses, attractive small businesses, and high-potential ventures.

Accepted Answer

Micro-businesses provide only a very lim

Question 16

Flora built her business from two employees to over 2 000 during her 30 years in business.She was able to endow a scholarship fund to the community college and to leave her children a perpetual income.We call this her:

Accepted Answer

A) corporate responsibility. 
B) social mission. 
C) good citizenship. 
D) entrepreneurial legacy. 
A) corporate responsibility. 
B) social mission. 
C) good citizenship. 
D) entrepreneurial legacy.

Question 17

Ben seems to have the Midas touch.He can recognise opportunity where others see only problems.His focus is on creating solutions for customers.Ben has a(n) _____________ personality.

Accepted Answer

A) technician 
B) manager 
C) entrepreneur 
D) opportunistic 
A) technician 
B) manager 
C) entrepreneur 
D) opportunistic

Question 18

Compared to large organisations, small businesses

Accepted Answer

A) play just as important if not a larger part in the economy. 
B) represent less than one per cent of all organisations with employees. 
C) account for 55 per cent of private payrolls. 
D) generated 20-40 per cent of all new jobs in the last decade. 
A) play just as important if not a larger part in the economy. 
B) represent less than one per cent of all organisations with employees. 
C) account for 55 per cent of private payrolls. 
D) generated 20-40 per cent of all new jobs in the last decade.

Question 19

Entrepreneurs are more likely than large companies to capitalise on innovations because:

Accepted Answer

A) entrepreneurs have more time to be creative. 
B) larger businesses must satisfy shareholders and cannot take risks. 
C) entrepreneurs are more likely to find grants for research. 
D) larger businesses may be too focused on existing products. 
A) entrepreneurs have more time to be creative. 
B) larger businesses must satisfy shareholders and cannot take risks. 
C) entrepreneurs are more likely to find grants for research. 
D) larger businesses may be too focused on existing products.

Question 20

Godfrey places great emphasis on operating his business to the highest standards of honesty and ethics.Godfrey likely believes:

Accepted Answer

A) the end justifies the means. 
B) how you achieve is as important as what you achieve. 
C) the customer is always right. 
D) good guys finish last. 
A) the end justifies the means. 
B) how you achieve is as important as what you achieve. 
C) the customer is always right. 
D) good guys finish last.

Exam 1: The Entrepreneurial Life

Natalie enjoyed yarn crafts so she opened a yarn and craft store in her small town.Sales have been dismal; few people visit her store.What mistake did Natalie make?

Sometimes entrepreneurs spend so much time and energy building the business that relationships are destroyed.Which phrase best describes this misfortune?

Which of the following types of businesses makes up the largest sector of the South African economy?

Martin expected to build his direct sales business to the point that he can quit his day job after six months.Five months later he barely has any customers.Martin:

Frances convinced her aunt to invest in her day spa in exchange for a percentage of the profits.Frances is:

Rose operates a franchise beauty salon.Negative publicity about the effects of her beauty products has diminished her ability to grow the business.Rose has a(n):

Explain the advantages of a social entrepreneurship.Give an example of such a business.

Oscar wants everything in his restaurant to be perfect so he points out every little mistake his servers make.He has high turnover among his staff.Why?

Walter wanted to be able to make decisions about issues that directly affected his department but in his company, the managers made all the decisions.So Walter left the company and started his own business.Walter was looking for:

Sabrina has figured out how to recycle clear plastic bottles into woven fabric and has launched a new business.Sabrina is:

Thabo works as a self-employed golf pro at the local country club, allowing him to spend more time with his young family.He'll never earn much but he and his family are happy.Which type of small business does Thabo have?

Ronald operates a fast-food restaurant.He is under contract to the organisation under whose name he does business.The contract limits what Ronald can do with his business.Ronald is a:

Most entrepreneurs work shorter hours in their own businesses than they did when working for someone else because they have no boss to report to.

Explain the nature of and differences among micro-businesses, attractive small businesses, and high-potential ventures.

Flora built her business from two employees to over 2 000 during her 30 years in business.She was able to endow a scholarship fund to the community college and to leave her children a perpetual income.We call this her:

Ben seems to have the Midas touch.He can recognise opportunity where others see only problems.His focus is on creating solutions for customers.Ben has a(n) _____________ personality.

Compared to large organisations, small businesses

Entrepreneurs are more likely than large companies to capitalise on innovations because:

Godfrey places great emphasis on operating his business to the highest standards of honesty and ethics.Godfrey likely believes:

Integrity, Ethics And, Social Entrepreneurship

Starting a Small Business

Franchising and Buyouts

The Family Business

The Business Plan: Visualizing the Dream

The Marketing Plan

The Organizational Plan: Teams, Legal Structures, Alliances, and Directors

The Location Plan

Understanding a Firms Financial Statements

Forecasting Financial Requirements

A Firms Sources of Financing

Planning for the Harvest

Building Customer Relationships

Product and Supply Chain Management

Pricing and Credit Decisions

Promotional Planning

Global Opportunities for Small Business

Professional Management and the Small Business

Managing Human Resources

Managing Operations

Managing the Firms Assets

Managing Risk in the Small Business

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