Deck 18: Entrepreneurship and Small Business

Question 1

At what stage in the life-cycle of a business is professional management experience the most important?

A) Birth
B) Breakthrough
C) Maturity
D) Death

Answer 1

B

Question 2

The U.S.federal agency responsible for defining and supporting small businesses is the __________.

A) SBA
B) NSA
C) SEC
D) FDA

Answer 2

A

Question 3

Which stage of the life-cycle of an entrepreneurial firm involves refining the strategy,investing wisely,and staying flexible?

A) Birth
B) Breakthrough
C) Maturity
D) Death

Answer 3

C

Question 4

Sam is an employee in a large corporation,Dean,Inc.who takes significant risk and display entrepreneurial behavior.Sam is referred to as which of these?

A) Entrepreneurs
B) Senior managers
C) Intrapreneurs
D) Venture capitalists

Question 5

When people start new businesses because they have few or no other options,it is called __________.

A) socialism-based entrepreneurship
B) capitalism-driven business
C) minority syndrome business
D) necessity-based entrepreneurship

Question 6

People aged __________ are the most entrepreneurially active in the United States.

A) 25-34
B) 45-54
C) 55-64
D) 75-84

Question 7

Small business makes up what percentage of U.S.companies?

A) 60
B) 70
C) 80
D) 90

Question 8

According to the U.S.government,a small business is a __________.

A) publicly held company
B) new venture
C) corporation
D) privately owned and operated business

Question 9

87% of small businesses employ less than __________ people.

A) 5
B) 10
C) 15
D) 20

Question 10

In which of business life-cycle a business sees major growth and an increase in business complexity?

A) Majority stage
B) Breakthrough stage
C) Post maturity stage
D) Birth stage

Question 11

The fastest growing segment in small business ownership is __________ owned businesses.

A) women
B) Hispanic-American
C) African-American
D) white American

Question 12

Research indicates that while not absolutely required,most entrepreneurs have which of the following trait(s)?

A) An external locus of control
B) A low need for achievement
C) A discomfort with uncertainty
D) Self-confidence and self-reliance

Question 13

Potential entrepreneurs often possess all of the following characteristics EXCEPT:

A) a high need for achievement.
B) an intolerance for ambiguity.
C) flexibility.
D) a high energy level.

Question 14

__________ is dynamic risk-taking,creative,and growth-oriented behavior.

A) Business
B) Capitalism
C) Investing
D) Entrepreneurship

Question 15

A(n)__________ person is someone who is willing to pursue opportunities that others see as problems or threats.

A) business person
B) fool
C) entrepreneur
D) banker

Question 16

Which of these is targeted at solving the problems of the poor and disadvantaged?

A) Minority entrepreneurship
B) Social entrepreneurship
C) Disadvantaged entrepreneurship
D) Welfare entrepreneurship

Question 17

The first person to enter a new market is said to have a __________.

A) first mover advantage
B) good time
C) government subsidized business loss
D) early entry disadvantage

Question 18

The main difference between "social entrepreneurs" and general business entrepreneurs is that social entrepreneurs have

A) a higher tolerance for ambiguity.
B) a desire to take greater risks.
C) a higher degree of self-motivation.
D) a drive toward a social mission.

Question 19

Minority entrepreneurs create almost __________ million jobs.

A) 2
B) 6
C) 10
D) 20

Question 20

Small businesses employs over __________ percent of America's private workers.

A) 50
B) 66
C) 75
D) 90

Question 21

A(n)____________plan determines how the leadership of a family owned business will transition.

A) business
B) operations
C) succession
D) strategic

Question 22

When two or more people agree to contribute resources to start and operate a business,it is called a __________.

A) partnership
B) limited liability company
C) sole proprietorship
D) x corporation

Question 23

A partnership that consists of one general manager that manages the business and one or more partners that are not involved in the business is called a __________.

A) general partnership
B) limited partnership
C) proprietorship
D) limited liability corporation

Question 24

According to the U.S.government,what percent of small businesses fail in their first five years?

A) 60%
B) 70%
C) 80%
D) 90%

Question 25

The _________- business structure gives you the most control but that carries the greatest risk.

A) corporation
B) sole proprietorship
C) general partnership
C) limited liability corporation
D) limited partnership

Question 26

A real indication of a problem with family owned businesses is that only three percent are expected to survive beyond the __________ generation.

A) first
B) second
C) third
D) fourth

Question 27

A ____________ is a small business that consists of an individual or man and wife.

A) partnership
B) general partnership
C) sole proprietorship
D) corporation

Question 28

John wants to start a new business,but he would like to keep the paperwork simple and avoid large legal fees.However,John does not want his personal property attached to the business.John should start his company as a __________.

A) corporation
B) partnership
C) limited liability company
D) proprietorship

Question 29

A __________ combines the advantages of the sole proprietorship,partnership,and corporation.

A) partnership
B) limited liability company
C) proprietorship
D) x corporation

Question 30

Family businesses have many problems.The issue,who will run the business when the current family head leaves,is called a __________ problem.

A) follow through
B) succession
C) follow up
D) resignation

Question 31

What can most of the failures of small start-up companies be related to?

A) Finding the money to start the business
B) Inferior product ideas
C) Lack of professional management skills
D) Failing to do an IPO

Question 32

The two types of partnerships are __________ and __________.

A) S corporation; corporation
B) specific; general
C) general; limited
D) limited; specific

Question 33

_______________ is raising money to start a business by selling a percentage of the company.

A) Debt financing
B) Initial public financing
C) Asset financing
D) Equity financing

Question 34

What should a firm in the "birth" stage of its life cycle focus on?

A) Becoming profitable
B) Refining the strategy
C) Finding the money
D) Growing

Question 35

All of the following should be involved in a business plan EXCEPT:

A) an executive summary.
B) the business fundamentals.
C) careful organization.
D) long and detailed analysis to cover all potential questions.

Question 36

A partnership in which owners share managerial responsibilities is called a __________.

A) limited liability corporation
B) specific partnership
C) general partnership
D) limited partnership

Question 37

Most businesses in the U.S.are controlled by:

A) families.
B) governments.
C) big corporations.
D) other small businesses.

Question 38

Getting a loan from friends or banks in order to start a business is called __________.

A) equity financing
B) initial public financing
C) debt financing
D) leasing

Question 39

A _________ is a business entity that is legally separated from the owners.

A) corporation
B) general partnership
C) proprietorship
D) limited partnership

Question 40

Common reasons for small business failures include all of the following EXCEPT:

A) lack of experience
B) lack of strategy
C) poor financial controls
D) moderate growth rate

Question 41

Research shows that entrepreneurs are born not made.

Question 42

Entrepreneurship does not offer a good path to success for women and minorities.

Question 43

Women owned businesses in the U.S.have declined in recent years.

Question 44

The Family Firm Institute reports that family businesses account for 78% of new jobs created in the United States and provide 60% of the nation's employment.

Question 45

A good family succession plan won't only spell out how the financial end of things will be handled,but it should also cover control and leadership issues.

Question 46

An angel investor who invests in a new venture is providing __________.

A) debt financing
B) partnership financing
C) restricted financing
D) equity financing

Question 47

When a business gets to the "maturity" stage of development,it should focus on refining its strategy,continuing growth,and managing for success.

Question 48

The payoff for venture capitalists is at the occurrence of the __________.

A) retirement of the debt
B) government regulation
C) business closure
D) initial public offering

Question 49

A wealthy private individual who invests in new ventures in return for equity in the company is called a(n)__________.

A) equity investor
B) angel investor
C) new venture manager
D) banker

Question 50

Most new businesses fail within five years.

Question 51

A "small" business is actually one with 500 or fewer employees.

Question 52

A friend comments to you,"When things go right,nothing beats a family business.But,when things go wrong,there is not much worse than a family business!" Based upon your reading,is this statement true or false?

Question 53

Entrepreneurship is only involved in starting a new business from scratch.

Question 54

A(n)__________ is the first time that a company sells its stock to the public.

A) stock exchange
B) initial public offering
C) private exchange
D) stock auction

Question 55

Research suggests that a college degree is necessary to be a successful entrepreneur.

Question 56

The __________form of financing would give you the most control with less flexibility in cash flows.

A) equity financing
B) money from a venture capitalist
C) debt financing
D) IPO

Question 57

Fortunately,when it comes to financing,women have far more access to capital than men.

Question 58

Intrapreneurship is the same as entrepreneurship.

Question 59

Sadie is the president of Sadie's Stuff LLC.She owns 200,000 shares of the company.Sadie will be a very wealthy person if the company has a successful __________.

A) year
B) joint venture
C) equity investor
D) initial public offering

Question 60

People who make a living by investing large sums of money in start-up businesses in exchange for an equity position in the company are called __________.

A) venture capitalists
B) equity investors
C) bankers
D) start-up managers

Question 61

The organizational structure that exists as a legal entity separate from the ownership is called a(n)__________.

Question 62

__________ involves developing a business to solve pressing societal needs at home or abroad.

Question 63

Compare and contrast the various structural options open to a small business organization.

Question 64

The main,if not only,reason for writing a business plan is to obtain financing.

Question 65

The document that describes the goals of the firm,outlines how it intends to operate,and lays out the financial strategies is called a(n)__________.

Question 66

When an IPO is successful,the market bids up the share price,thus increasing the value of the original shares held by the venture capitalist and the entrepreneur.

Question 67

Equity financing provides control to the business owner which has to be repaid eventually.

Question 68

__________ mistakes are the underlying reasons for most small business failures.

Question 69

An LLC is a hybrid structural form that gives advantages of sole proprietorships / partnerships for taxes and corporations for liability protection.

Question 70

A(n)__________ occurs when a firm moves faster than its competitors in spotting and exploiting a new market or previously unrecognized niche in the market.

Question 71

Individuals and/or groups who make money by providing funds to new companies in exchange for an equity position and the hope of rising equity value are called __________.

Question 72

Define and characterize the various stages of a business life-cycle.

Question 73

When two or more people agree to contribute resources to start and operate a business together it is called a(n)___________.

Question 74

When an entrepreneur is forced to open their own business due to layoffs from their job and a low likelihood of replacing the job,inability to grow in their current career,or simply to put food on the table,they are engaged in __________ entrepreneurship.

Question 75

How would you evaluate your "fit" as an entrepreneur?

Question 76

__________ display entrepreneurial behavior as employees of larger firms.

Question 77

When you provide ownership shares in exchange for capital that does not have to be repaid in order to start or run your business,you are using __________ financing.

Question 78

A facility that offers services to help new businesses get established is called a(n)_____________.

Question 79

In addition to all of the normal operational challenges of small business,when you decide to go into business with siblings,parents,or relatives,you also face the possibility of __________ developing over the multiple relationships and issues that exist outside of the business,complicating the business relationships as well.

Question 80

In a limited partnership,only the general manager is involved in the day-to-day operations; however,all partners share in the profits.