Question 1

Small businesses create more jobs than either medium or large businesses.

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following corporate trends have contributed to the growth of entrepreneurship?

Accepted Answer

A) The acquisition and merging of mega corporations 
B) The idea that "small is beautiful" in large companies,resulting in less hierarchy and layers of management 
C) The flood of venture capital being made available to small businesses 
D) The downturn in international markets forcing a focus on the domestic market 
A) The acquisition and merging of mega corporations 
B) The idea that "small is beautiful" in large companies,resulting in less hierarchy and layers of management 
C) The flood of venture capital being made available to small businesses 
D) The downturn in international markets forcing a focus on the domestic market B

Question 3

A knowledge based business economy favors small business because:

Accepted Answer

A) the cost of managing and transmitting knowledge is very low. 
B) small businesses are more successful. 
C) information technology is driving cost of managing and transmitting knowledge lower. 
D) Both A and C 
A) the cost of managing and transmitting knowledge is very low. 
B) small businesses are more successful. 
C) information technology is driving cost of managing and transmitting knowledge lower. 
D) Both A and C D

Question 4

Potential drawbacks of small business ownership include:

Accepted Answer

A) a relatively low guaranteed income. 
B) a significantly freer personal schedule but less personal income and assets with which to enjoy the more relaxed schedule. 
C) a high likelihood of a lower quality of life while starting and establishing the small business. 
D) relatively limited potential for further personal development. 
A) a relatively low guaranteed income. 
B) a significantly freer personal schedule but less personal income and assets with which to enjoy the more relaxed schedule. 
C) a high likelihood of a lower quality of life while starting and establishing the small business. 
D) relatively limited potential for further personal development.

Question 5

Dirk wants to be in control.He's tired of taking orders from others and wants to feel a sense of accountability for the outcome of his work.Dirk displays the entrepreneurial characteristic of:

Accepted Answer

A) the desire for immediate feedback. 
B) a desire for responsibility. 
C) confidence in his ability to succeed. 
D) a high energy level. 
A) the desire for immediate feedback. 
B) a desire for responsibility. 
C) confidence in his ability to succeed. 
D) a high energy level.

Question 6

To many entrepreneurs,the opportunity for future earnings is more important than the immediate earning potential of the business.

Accepted Answer

A) True 
 B)False

Question 7

Research shows that for "Copreneurship" to work,responsibilities must be divided by gender.

Accepted Answer

A) True 
 B)False

Question 8

Family-owned businesses have a significant advantage over other forms of small business,in that they have a very high survival rate when transitioning between generations of leadership.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not a common characteristic of entrepreneurs?

Accepted Answer

A) Desire for responsibility 
B) Business plan expertise 
C) Preference for moderate risk 
D) High energy level 
A) Desire for responsibility 
B) Business plan expertise 
C) Preference for moderate risk 
D) High energy level

Question 10

Customer service,convenience,speed and quality are all examples of:

Accepted Answer

A) learning to manage people effectively. 
B) generating more revenue. 
C) small businesses. 
D) setting your business apart from others. 
A) learning to manage people effectively. 
B) generating more revenue. 
C) small businesses. 
D) setting your business apart from others.

Question 11

Entrepreneurs usually experience greater income stability running their own businesses than they did in their corporate careers.

Accepted Answer

A) True 
 B)False

Question 12

In start-ups,it is often safest to be a "me-too" business,follow the leaders in the market until sufficient cash flow develops to permit R & D into new and innovative products.

Accepted Answer

A) True 
 B)False

Question 13

Primary cause of business failure is:

Accepted Answer

A) improper managerial attitude. 
B) poor financial controls. 
C) incompetent management. 
D) location. 
A) improper managerial attitude. 
B) poor financial controls. 
C) incompetent management. 
D) location.

Question 14

"Copreneurs" are marked by:

Accepted Answer

A) a division of labor by expertise. 
B) their similarity to the traditional mom and pop operation. 
C) a decline in the number of businesses. 
D) a greater success at raising venture capital than sole proprietorship-type businesses. 
A) a division of labor by expertise. 
B) their similarity to the traditional mom and pop operation. 
C) a decline in the number of businesses. 
D) a greater success at raising venture capital than sole proprietorship-type businesses.

Question 15

Small businesses thrive in every industry,but the majority of them are in the:

Accepted Answer

A) general construction industry. 
B) retail businesses. 
C) mining and manufacturing. 
D) service industries. 
A) general construction industry. 
B) retail businesses. 
C) mining and manufacturing. 
D) service industries.

Question 16

When building a home-based business,it is important that the entrepreneur:

Accepted Answer

A) keep friends and neighbors from disturbing him/her while working at home. 
B) not discuss it with the family to avoid raising expectations and creating undue pressure. 
C) have all business mail sent to the home address. 
D) not take the home office deduction to avoid IRS scrutiny of his/her tax return. 
A) keep friends and neighbors from disturbing him/her while working at home. 
B) not discuss it with the family to avoid raising expectations and creating undue pressure. 
C) have all business mail sent to the home address. 
D) not take the home office deduction to avoid IRS scrutiny of his/her tax return.

Question 17

Mary and Ted are discussing starting a new business and are asking themselves a series of questions like;"What is the worst that could happen if we fail?" "How likely is that to happen?" They are assessing which potential drawback of small business ownership?

Accepted Answer

A) The long hours and hard work involved 
B) The risk of losing their entire investment 
C) The lower quality of life they'll experience 
D) The uncertainty of their income 
A) The long hours and hard work involved 
B) The risk of losing their entire investment 
C) The lower quality of life they'll experience 
D) The uncertainty of their income

Question 18

A key characteristic of a successful entrepreneur is:

Accepted Answer

A) never having failed. 
B) expert technical knowledge of the product. 
C) learning to fail intelligently. 
D) earning at least a 25% return for investors. 
A) never having failed. 
B) expert technical knowledge of the product. 
C) learning to fail intelligently. 
D) earning at least a 25% return for investors.

Question 19

Generation X,made up of those people born between 1965 and 1980,is the most entrepreneurial generation in history.

Accepted Answer

A) True 
 B)False

Question 20

More businesses are started by individuals between ________ than at any other age.

Accepted Answer

A) under 25 
B) 25 - 34 
C) 35 - 44 
D) 45 - 54 
A) under 25 
B) 25 - 34 
C) 35 - 44 
D) 45 - 54

Exam 1: Entrepreneurs: the Driving Force Behind Small Business

Small businesses create more jobs than either medium or large businesses.

Which of the following corporate trends have contributed to the growth of entrepreneurship?

A knowledge based business economy favors small business because:

Potential drawbacks of small business ownership include:

Dirk wants to be in control.He's tired of taking orders from others and wants to feel a sense of accountability for the outcome of his work.Dirk displays the entrepreneurial characteristic of:

To many entrepreneurs,the opportunity for future earnings is more important than the immediate earning potential of the business.

Research shows that for "Copreneurship" to work,responsibilities must be divided by gender.

Family-owned businesses have a significant advantage over other forms of small business,in that they have a very high survival rate when transitioning between generations of leadership.

Which of the following is not a common characteristic of entrepreneurs?

Customer service,convenience,speed and quality are all examples of:

Entrepreneurs usually experience greater income stability running their own businesses than they did in their corporate careers.

In start-ups,it is often safest to be a "me-too" business,follow the leaders in the market until sufficient cash flow develops to permit R & D into new and innovative products.

Primary cause of business failure is:

"Copreneurs" are marked by:

Small businesses thrive in every industry,but the majority of them are in the:

When building a home-based business,it is important that the entrepreneur:

Mary and Ted are discussing starting a new business and are asking themselves a series of questions like;"What is the worst that could happen if we fail?" "How likely is that to happen?" They are assessing which potential drawback of small business ownership?

A key characteristic of a successful entrepreneur is:

Generation X,made up of those people born between 1965 and 1980,is the most entrepreneurial generation in history.

More businesses are started by individuals between ________ than at any other age.

Strategic Management and the Entrepreneur

Choosing a Form of Ownership

Franchising and the Entrepreneur

Buying an Existing Business

Conducting a Feasibility Analysis and Crafting a Winning Business Plan

Creating a Solid Financial Plan

Managing Cash Flow

Building a Guerrilla Marketing Plan

Creative Use of Advertising and Promotion

Pricing and Credit Strategies

Global Marketing Strategies

E-Commerce and Entrepreneurship

Sources of Equity Financing

Sources of Debt Financing

Location,layout,and Physical Facilities

Supply Chain Management

Managing Inventory

Staffing and Leading a Growing Company

Management Succession and Risk Management Strategies in the Family Business

Ethics and Social Responsibility: Doing the Right Thing

The Legal Environment: Business Law and Government Regulation

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