Question 1

The small business sector that has the best chance of significant growth is legal services.

Accepted Answer

A) True 
 B)False  False

Question 2

Ketan is an intrapreneur for a multinational electronics company.As an intrapreneur Ketan:

Accepted Answer

A) is expected to recruit new managerial talent for his firm. 
B) will use the firm's existing resources to develop new products. 
C) is concerned mainly with improving the firm's public image. 
D) will concentrate on creating new ventures that can be spun off to become independent firms. 
A) is expected to recruit new managerial talent for his firm. 
B) will use the firm's existing resources to develop new products. 
C) is concerned mainly with improving the firm's public image. 
D) will concentrate on creating new ventures that can be spun off to become independent firms. B

Question 3

Small business employees:

Accepted Answer

A) usually dislike their jobs and look forward to finding employment with major corporations. 
B) find their jobs less challenging than a similar job in a large corporation. 
C) usually get paid higher wages than workers in large corporations. 
D) often find more job satisfaction than their counterparts in big business. 
A) usually dislike their jobs and look forward to finding employment with major corporations. 
B) find their jobs less challenging than a similar job in a large corporation. 
C) usually get paid higher wages than workers in large corporations. 
D) often find more job satisfaction than their counterparts in big business. D

Question 4

Bad luck is the most often reported cause for small business failure.

Accepted Answer

A) True 
 B)False

Question 5

Successful entrepreneurs often make use of professional managers to introduce new ideas.

Accepted Answer

A) True 
 B)False

Question 6

Recent evidence suggests that the small business failure rate is significantly much higher than previously reported.

Accepted Answer

A) True 
 B)False

Question 7

One of the greatest advantages that small businesses have over larger ones is the ability to know their customers better and to adapt quickly to the customers' needs.

Accepted Answer

A) True 
 B)False

Question 8

Compared to employees of large businesses,small business employees are less satisfied with their work because they see their jobs as less challenging.

Accepted Answer

A) True 
 B)False

Question 9

Motivated by his desire to operate his own business,Nick considers purchasing an existing business.As he carefully weighs this option,he is likely to find that:

Accepted Answer

A) very few owners of small businesses have any interest in selling. 
B) his potential for success would greatly improve if he started his own new firm. 
C) the value of an existing business is determined by what the business owns,what it earns,and what makes it unique. 
D) any entrepreneur willing to sell his/her business is experiencing serious financial problems. 
A) very few owners of small businesses have any interest in selling. 
B) his potential for success would greatly improve if he started his own new firm. 
C) the value of an existing business is determined by what the business owns,what it earns,and what makes it unique. 
D) any entrepreneur willing to sell his/her business is experiencing serious financial problems.

Question 10

Erin developed a new type of exercise equipment she calls the Tush N' Tone.After unsuccessfully searching for potential investors,she arranged a personal loan and borrowed additional money from her parents.Her willingness to continue believing in her idea and remain enthusiastic shows that Erin is:

Accepted Answer

A) characteristically self-nurturing. 
B) better suited to managing a nonprofit organization. 
C) unaware of the risks she was taking. 
D) not a true entrepreneur. 
A) characteristically self-nurturing. 
B) better suited to managing a nonprofit organization. 
C) unaware of the risks she was taking. 
D) not a true entrepreneur.

Question 11

Southwest College received a government grant to establish a business incubator.This facility will offer:

Accepted Answer

A) local government agencies assistance in obtaining funds for urban renewal. 
B) area businesses advice on employee benefits and ways to reduce taxes. 
C) venture capitalists an opportunity to identify new entrepreneurs. 
D) new businesses low-cost office space with basic business services. 
A) local government agencies assistance in obtaining funds for urban renewal. 
B) area businesses advice on employee benefits and ways to reduce taxes. 
C) venture capitalists an opportunity to identify new entrepreneurs. 
D) new businesses low-cost office space with basic business services.

Question 12

The best way to learn about small business is to "bite the bullet" and start your own.

Accepted Answer

A) True 
 B)False

Question 13

After retiring as a telecommunications executive,Chad joined SCORE.As a SCORE counselor Chad will:

Accepted Answer

A) provide venture capital funds for aspiring small businesspeople. 
B) visit high schools to advise students who are thinking about starting their own business. 
C) help in the research and development of new products for entrepreneurs to market. 
D) provide consulting services to small businesses for free. 
A) provide venture capital funds for aspiring small businesspeople. 
B) visit high schools to advise students who are thinking about starting their own business. 
C) help in the research and development of new products for entrepreneurs to market. 
D) provide consulting services to small businesses for free.

Question 14

In the Thinking Green box,"Socially Responsible Entrepreneurship",:

Accepted Answer

A) Gary Hirshberg explains how he turned Kraft Foods into an eco-friendly company. 
B) Gary Hirshberg explains the difficulties that companies experience in their attempts to be socially responsible,and talks about what he learned from his business failures. 
C) Gary Hirshberg explains that environmentalism and business still don't mix due to the high investment costs in re-tolling manufacturing sites to be more eco-friendly. 
D) Gary Hirshberg proves that environmentalism and business can cohabitate and even turn a profit. 
A) Gary Hirshberg explains how he turned Kraft Foods into an eco-friendly company. 
B) Gary Hirshberg explains the difficulties that companies experience in their attempts to be socially responsible,and talks about what he learned from his business failures. 
C) Gary Hirshberg explains that environmentalism and business still don't mix due to the high investment costs in re-tolling manufacturing sites to be more eco-friendly. 
D) Gary Hirshberg proves that environmentalism and business can cohabitate and even turn a profit.

Question 15

Jon received a letter in the mail explaining that HE COULD EARN THOUSANDS!!!! by working just a few hours from home.Most likely Jon's letter was a work-at-home scam.
Persons interested in working from home must be cautious of scam opportunities,which will often take your money upfront,or never pay you for work provided.

Accepted Answer

A) True 
 B)False

Question 16

Ramsey is a dreamer rather than a doer.This is an important attribute for an entrepreneur since their job is to be creative and develop new ideas that are then implemented by others.
Entrepreneurs must be self-directed,self-nurturing,and action-oriented.They do not depend on others to follow through on their ideas.

Accepted Answer

A) True 
 B)False

Question 17

Studies show that seniority is the most important criteria when selecting employees for promotion to management positions.

Accepted Answer

A) True 
 B)False

Question 18

Since creating a detailed business plan is almost impossible,entrepreneurs should focus on the other tasks needed to get their firm started.

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

The position of our government is to restrict foreign entrepreneurs from operating within the U.S.

Accepted Answer

A) True 
 B)False

Exam 6: Entrepreneurship and Starting a Small Business

The small business sector that has the best chance of significant growth is legal services.

Ketan is an intrapreneur for a multinational electronics company.As an intrapreneur Ketan:

Small business employees:

Bad luck is the most often reported cause for small business failure.

Successful entrepreneurs often make use of professional managers to introduce new ideas.

Recent evidence suggests that the small business failure rate is significantly much higher than previously reported.

One of the greatest advantages that small businesses have over larger ones is the ability to know their customers better and to adapt quickly to the customers' needs.

Compared to employees of large businesses,small business employees are less satisfied with their work because they see their jobs as less challenging.

Motivated by his desire to operate his own business,Nick considers purchasing an existing business.As he carefully weighs this option,he is likely to find that:

Erin developed a new type of exercise equipment she calls the Tush N' Tone.After unsuccessfully searching for potential investors,she arranged a personal loan and borrowed additional money from her parents.Her willingness to continue believing in her idea and remain enthusiastic shows that Erin is:

Southwest College received a government grant to establish a business incubator.This facility will offer:

The best way to learn about small business is to "bite the bullet" and start your own.

After retiring as a telecommunications executive,Chad joined SCORE.As a SCORE counselor Chad will:

In the Thinking Green box,"Socially Responsible Entrepreneurship",:

Studies show that seniority is the most important criteria when selecting employees for promotion to management positions.

Since creating a detailed business plan is almost impossible,entrepreneurs should focus on the other tasks needed to get their firm started.

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

The position of our government is to restrict foreign entrepreneurs from operating within the U.S.

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding How Economics Affects Business

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Management and Leadership

Adapting Organizations to Todays Markets

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employee-Management Issues and Relationships

Marketing: Helping Buyers Buy

Developing and Pricing Goods and Services

Distributing Products

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money,financial Institutions,and the Federal Reserve

Bonus A: Using Technology to Manage Information

Bonus B: Managing Risk

Bonus C: Managing Your Personal Finances

Appendix: Working Within the Legal Environment

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