Deck 5: Small Business Entry: Paths to Part-Time Entrepreneurship

Question 1

One advantage of consignment approaches is that they permit full-time sales with only a part-time involvement from you.

Answer 1

True

Question 2

Research indicates that most retail firms typically start out as a hobby.

Answer 2

True

Question 3

The key success factor for a stand is having a location where there is enough foot or vehicle traffic to sustain the business.

Answer 3

True

Question 4

In deciding whether to make the move from part-time to full time,the key question is usually government regulations.

Question 5

Primary disadvantages of stand retailing are that it requires a significant amount of capital and time investment.

Question 6

Working for yourself for 40 or fewer hours a week is called part-time self-employment.

Question 7

Part-time self-employment represents a very minor portion of all current entrepreneurship.

Question 8

If you are new to business and working on your own,estimates suggest that a business plan will take anywhere from 10 to 20 hours.

Question 9

Most people start in entrepreneurship via part-time self-employment.

Question 10

The majority of the part-time businesses are stand retailing.

Question 11

The more time and energy you spend preparing for a small-scale part-time business,the longer it takes to make a profit.

Question 12

The advantages of home businesses are the speed and ease of setup and having a highly variable income.

Question 13

Bootstrapping refers to finding a low-cost or no-cost way to do something.

Question 14

Aggrandizing means taking business away from your employer.

Question 15

For part-time entrepreneurs,time is the ultimate resource.

Question 16

Part-time entrepreneurship is important because it gives people a chance to learn the ropes in business and to test out their ideas.

Question 17

In terms of rent per square foot,carts and kiosks are often among the least expensive locations in the mall.

Question 18

There are two key groups outside your business with whom you must deal - customers and investors.

Question 19

Cannibalizing occurs when people do work for their part-time business while they are at their full-time job,blurring the boundary between them.

Question 20

One situation in which to consider part-time business is when you are new to business and need to gain basic experience.

Question 21

Permission from a government organization to act differently than the laws state is known as

A)a covenant.
B)volatility.
C)variance.
D)bootstrapping.

Question 22

The frequency of business starts and stops is referred to as

A)volatility.
B)aggrandizing.
C)bootstrapping.
D)moonlighting.

Question 23

Nowadays,the conventional wisdom is that if you are serious about starting a business,you ought to start a business full time and prepare for it by

A)doing a business plan.
B)making bylaws.
C)doing a strategic plan.
D)creating an organizational chart.

Question 24

Government specifications for acceptable use of land and buildings in particular areas are called

A)licensing laws.
B)public utility laws.
C)environmental laws.
D)zoning laws.

Question 25

In all of the following situations,it might make better sense to undertake a part-time business EXCEPT when

A)there is a narrow window of opportunity.
B)you lack the resources for a full-scale business.
C)you want to gain basic experience.
D)you are buying an existing business.

Question 26

Which of the following U.S.industries had the most number of establishments in 2007?

A)Manufacturing
B)Wholesale
C)Construction
D)Professional services

Question 27

Working at your business 35 hours a week or less is called

A)franchising.
B)full-time self-employment.
C)aggrandizing.
D)part-time self-employment.

Question 28

Which of the following statements about a business plan is false?

A)A business plan enables you to look at every aspect of your business.
B)Business plans are important if you intend to ask others for expertise or financial investments.
C)Estimates suggest that a business plan may take anywhere from 10 to 20 hours or more if you are new to business.
D)If you are new to business and need to gain basic experience,you might want to obtain other types of experience before writing a business plan.

Question 29

An Internet site designed to introduce and explain a business to others is known as a(n)

A)e-commerce Web site.
B)portal Web site.
C)advocacy Web site.
D)informational Web site.

Question 30

In organizing your part-time small business start-up,which of the following is NOT a key consideration?

A)Cost to start-up
B)Competition
C)Time to start-up
D)Permanence

Question 31

Full-time approaches include all of the following EXCEPT

A)buying or inheriting existing businesses.
B)stand retailing.
C)franchising.
D)opening a new full-time business.

Question 32

What is the greatest problem that home-based entrepreneurs face?

A)Zoning challenges
B)Gaining customers
C)Insurance problems
D)Delivering work

Question 33

Under which of the following situations might it make better sense to undertake a part-time business first?

A)You are buying an existing business
B)You want to gain basic experience
C)You are opening a franchise
D)There is too much competition

Question 34

Which of the following does NOT hold true of part-time self-employment?

A)It is a minor portion of all current entrepreneurship.
B)There is tremendous volatility as individuals jump in and out of self-employment quickly and frequently.
C)It accounts for around half of small businesses in the United States.
D)It is the way most people start in entrepreneurship.

Question 35

All of the following are reasons for the large numbers of home-based businesses in the United States EXCEPT

A)the idea that a customer knows where the entrepreneur lives can be a point in favor of trusting in the potential permanence of the firm.
B)it is inexpensive,since you are already living somewhere.
C)they generally give customers the strongest sense of legitimacy.
D)you can get your business going where you live in a moment.

Question 36

Part-time businesses are important for which of the following reasons?

A)They are important and necessary for our global competitiveness.
B)Majority of new inventions have come from part-time self-employed businesses.
C)Part-time self-employment is the way most people start in entrepreneurship.
D)Part-time businesses provide the cheap labor for large businesses and full-time entrepreneurs.

Question 37

Which of the following statements about the key considerations for part-time small business start-ups is false?

A)You want a low cost of start-up,since you probably will not have a lot of money to invest.
B)The more time and energy you spend preparing for a small-scale part-time business,the shorter it takes to make a profit.
C)In most cases,the cost to start-up and the time to market are closely related.
D)The fundamental idea of permanence is that customers want to know if the firm is likely to be around for awhile,to provide customer service and future sales.

Question 38

_____ is/are probably the ultimate resource,and starting a business can tax it heavily.

A)Family
B)Friends
C)Money
D)Time

Question 39

All of the following are situations in which it might make better sense to undertake a part-time business EXCEPT

A)when you are new to business and need to gain basic experience.
B)when you lack resources to pursue a full-scale business.
C)when there is a narrow window of opportunity.
D)when there is enough time and resources to get the entire business going.

Question 40

The limitations imposed on your property by your neighborhood group are known as

A)pacts.
B)covenants.
C)volatilities.
D)aggrandizements.

Question 41

Which of the following is also called multilevel marketing?

A)Network marketing
B)Auctioning
C)Catalog sales
D)Online marketing

Question 42

The party and door-to-door model represents which of the following part-time business approaches?

A)Stand retailing
B)Consignment
C)Home retail
D)Mail order

Question 43

A listed,live connection to a different Web site,which in turn displays a similar link to the first Web site is a(n)

A)sponsored link.
B)reciprocal link.
C)backlink.
D)incoming link.

Question 44

One of the most ancient forms of small business is

A)stand retailing.
B)consignment.
C)mail order.
D)licensing.

Question 45

In _____ sales,one firm sells to another firm.

A)business-to-business (B2B).
B)business-to-consumer (B2C).
C)consumer-to-consumer (C2C).
D)business-to-Internet (B2I).

Question 46

Identify the correct statement about RSS feeds.

A)All Web sites push content out to customers by using an RSS feed.
B)An RSS feed sends whatever Web material you specify to subscribers to that feed.
C)RSS stands for "really simple sequence."
D)RSS feeds can be read only with special readers.

Question 47

_____ are often among the most expensive locations in the mall in terms of rent per square foot.

A)Large anchor stores
B)Medium-sized boutique stores
C)Carts and kiosks
D)Food court stores

Question 48

All of the following are disadvantages of home retailing EXCEPT

A)high cost of getting started.
B)always working "on the road."
C)lacking a base from which you can organize and work.
D)having a highly variable income.

Question 49

Which of the following represents an advantage of stand retailing?

A)Variable income
B)Minimum startup investment
C)Steady income
D)Strong consumer base

Question 50

Products like music and cell phones are examples of the kind of goods we buy as individuals.This type of e-commerce is called

A)business-to-business (B2B).
B)business-to-consumer (B2C).
C)consumer-to-consumer (C2C).
D)business-to-Internet (B2I).

Question 51

_____ means getting the customer to agree to buy.

A)Opening
B)Promoting
C)Auctioning
D)Closing

Question 52

A Web page in which entries are posted in reverse chronological order is a

A)blog.
B)tweet.
C)search engine.
D)push service.

Question 53

An approach to selling in which the salesperson recruits customers to become distributors of the products or services to others is called

A)consignment shop.
B)network marketing.
C)auctioning.
D)licensing.

Question 54

All of the following relate to "stand retail" EXCEPT

A)they tend to be either semipermanent ones or movable ones.
B)they need to be built in places where there is less traffic.
C)they can be quickly established.
D)they have a problem of building customer base.

Question 55

Identify the statement that does not relate to home retail.

A)Low cost of setting up
B)Ability to do the work away from your home and employer
C)Provides a high steady income
D)Minimized potential conflicts

Question 56

The fundamental success factor in door-to-door selling is

A)closing the sale.
B)having a location with enough foot traffic.
C)approaching a "high-rent" district.
D)having a perishable product for sale.

Question 57

Which of the following is NOT an advantage of home businesses?

A)Speed and ease of setting up.
B)Low cost of getting started.
C)Ability to do the work away from your home and employer.
D)Always working "on the road" thereby enhancing productivity.

Question 58

Identify the correct statement about a hosting package.

A)It should include at least 1 terabyte of traffic a month.
B)It should give you at least five Web pages of space to tell your story.
C)It should include at least two e-mail accounts using your domain name.
D)It should include an online Web site editor so you can make changes to your site without buying Web-authoring software.

Question 59

Identify the correct statement about B2B.

A)For most of us,the B2B market is visible.
B)An example of a B2B transaction would be an individual buying a cell phone.
C)It involves electronically-facilitated transactions between consumers through a third party.
D)B2B e-commerce is larger than B2C e-commerce.

Question 60

Identify the correct statement about the eBay Web site.

A)The eBay method of auctioning means you pay a fee for posting your product and a sales fee based on the final bid price when the item sells.
B)Most online transactions use a credit card or an online payment system like PayMate,which is a division of eBay.
C)eBay does not allow buyers and sellers anonymity.
D)On eBay,you can list a single item for sale only by creating a Web site to support your effort.

Question 61

Contracting with people or companies outside your business to do work for your business refers to

A)moonlighting.
B)bootstrapping.
C)outsourcing.
D)licensing.

Question 62

The key success factor for a stand is

A)having a location where there is enough foot or vehicle traffic.
B)having a variable income.
C)having nonperishable sale items.
D)sharing with other businesses to minimize the high rent.

Question 63

Which of the following represents an advantage of a consignment approach?

A)Full-time sale with only a part-time involvement from you
B)High potential for competing offers
C)Amount of time before payout
D)Sellers' fees

Question 64

The two key groups outside your business with whom you must deal with as part-time business owners are

A)the state and federal governments.
B)the government and customers.
C)customers and employees.
D)employees and investors.

Question 65

Ownership of a portion of a business is called

A)equity.
B)debt.
C)leverage.
D)cash flow.

Question 66

Which of the following pertains to consignment shops?

A)They permit full-time sales with full-time involvement from you
B)They are high-risk level undertakings
C)They have low profitability because of seller fees
D)They have limited flexibility

Question 67

The assignment of work to others over whom you have power refers to

A)delegation.
B)outsourcing.
C)licensing.
D)zoning.

Question 68

All of the following are challenges of being a part-time entrepreneur EXCEPT

A)delegation and outsourcing.
B)ethical challenges.
C)moving from part-time to full-time entrepreneur.
D)the ability to make money to sustain the business.

Question 69

Working on your own part-time business after your regular job is called

A)moonlighting.
B)bootstrapping.
C)outsourcing.
D)licensing.

Question 70

_____ refers to information provided to the government concerning the existence of,name of,nature of,and contact information for your business.

A)Zoning
B)Franchising
C)Registration
D)Bootstrapping

Question 71

Research indicates that most service and retail firms typically start out as a

A)losing venture.
B)franchise.
C)hobby.
D)self-employment business.

Question 72

Retail stores in which customers can come and buy products placed in the shops by a wide variety of sellers are called

A)licensed outlets.
B)franchised kiosks.
C)consignment shops.
D)auctions.

Question 73

Which of the following is the most outsourced item by small businesses?

A)Payroll
B)Financial advice and management
C)Advertising and marketing
D)Legal issues

Question 74

The key device for managing time for part-time business individuals is

A)the to-do list.
B)auctioning.
C)hiring employees.
D)outsourcing.

Question 75

Delegation does NOT make sense in which of the following situations?

A)When you want your business to operate in two places at once.
B)When trust is low and employees lack skills.
C)When you want your business to operate when you are not present.
D)When others can do things better than you.

Question 76

Which of the following represents a disadvantage of a consignment approach?

A)Availability of different consignment stores and auctions
B)Long amount of time before payouts
C)Full-time sales with only a part-time involvement from you
D)High setup costs

Question 77

Finding a low-cost or no-cost way to do something is called

A)moonlighting.
B)bootstrapping.
C)outsourcing.
D)licensing.

Question 78

Which of the following does NOT hold true of consignment shops?

A)It promotes the popular way which is to give your product to someone else to sell.
B)They are retail stores in which customers can come and buy products placed in the shops by a wide variety of sellers.
C)The shop's owner handles the sale and gets a portion of the money from the sale in return.
D)Many consignment shops have a maximum selling price for items.

Question 79

_____ is the documented permission from the government to run your business.

A)Bootstrapping
B)Delegation
C)Licensing
D)Zoning

Question 80

All of the following are the key ideas of bootstrapping EXCEPT

A)cutting your personal and business expenses.
B)seeing if you can get things which you need for free.
C)seeing if you can substitute a lower-cost alternative before you buy.
D)borrowing heavily from banks while keeping your money untouched.