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

Question 1

Moonlighting refers to working on one's own part-time job after one's regular job.

Answer 1

True

Question 2

There are two key groups outside one's business with which one must deal-customers and investors.

Answer 2

False

Question 3

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

Answer 3

False

Question 4

An advantage of home businesses is the highly variable income that it produces.

Question 5

Part-time self-employment refers to working for self for 50 or fewer hours a week.

Question 6

The majority of part-time businesses are based in the home.

Question 7

One of the ways to determine the financial situation of a business is by crafting a business plan.

Question 8

Most small businesses-even part-time ones-need to have a website regardless of whether or not they use it for actual sales.

Question 9

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

Question 10

Pricing is not seen as a challenge by part-time businesses.

Question 11

When one is new to business and needs to gain basic experience,it makes better sense to first undertake a part-time business.

Question 12

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

Question 13

Most entrepreneurs start out working part time on their new business.

Question 14

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

Question 15

Intellectual property refers to original works like inventions,visual and performing art works,books,and computer programs.

Question 16

One technique to making bootstrapping work is leveraging low costs with free expertise.

Question 17

Aggrandizing refers to taking business away from your employer.

Question 18

Outsourcing refers to the assignment of work to others over whom one has power.

Question 19

Covenants are government specifications for acceptable use of land and buildings in particular areas.

Question 20

The advantage of consignment approaches is that they permit full-time sales with only a part-time involvement from the owner.

Question 21

Which of the following is true about part-time self-employment?

A) It is only a minor portion of all current entrepreneurship in the United States.
B) There is no volatility in part-time self-employment.
C) It accounts for only 10 percent of small businesses in the United States.
D) Most entrepreneurs start out working part time on their new business.

Question 22

Which of the following requires a full-time approach to self-employment?

A) Free lancing
B) Stand retailing
C) Franchising
D) Interning

Question 23

Andrew initially worked with a travel website for few months and then became self-employed by starting a martial arts school,where he taught karate to teenagers.After an year,he closed the school and joined an advertising firm.After two years,he quit the advertising firm and became self-employed as a freelance music composer.Which of the following terms indicates the changes in Andrew's employment structure?

A) Volatility
B) Adverse possession
C) Bootstrapping
D) Easement

Question 24

Which of the following is true with regard to home-based businesses in the United States?

A) Home-based businesses are specific only to making furniture,toys,clothing,or food.
B) Home-based businesses give U.S.customers the strongest sense of legitimacy.
C) Home-based businesses in the United States represent only 5 percent of all firms.
D) Home-based businesses are inexpensive and quick to start.

Question 25

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

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

Question 26

Which of the following situations indicates that it makes better sense to first undertake a part-time business?

A) Byron has a full-time business plan.
B) Jamie wants to start a franchise for an international brand.
C) Cathy has funds to start her own music school.
D) Damon wants to gain experience in the advertising industry.

Question 27

A(n)_____ is a permission from a government organization to act differently than what the laws state.

A) covenant
B) easement
C) variance
D) business pass

Question 28

For new entrepreneurs,which of the following would be a good reason to undertake a part-time business first before a full-time one?

A) To buy an existing business
B) To gain basic experience
C) To open a franchise
D) To increase competition in a specific industry

Question 29

The frequency of business starts and stops is referred to as:

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

Question 30

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

A) when someone is new to business and needs to gain basic experience.
B) when someone lacks resources to pursue a full-scale business.
C) when there is a narrow window of opportunity.
D) when there is too much competition.

Question 31

_____ refers to working for self for 35 or fewer hours a week.

A) Franchising
B) Full-time self-employment
C) Aggrandizing
D) Part-time self-employment

Question 32

_____ comprises of working for self for more than 35 hours a week.

A) Franchising
B) Full-time self-employment
C) Aggrandizing
D) Part-time self-employment

Question 33

Which of the following is an example of part-time self-employment?

A) Tabatha,who works from home for a fashion website for a minimum of 40 hours a week
B) Raul,who works as an intern in a law firm for more than 35 hours a week
C) Dorothy,who works in her small bakery for less than 30 hours a week
D) Joshua,who teaches piano to children for 40 hours a week

Question 34

The limitations imposed on a business's property by neighborhood groups are referred to as:

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

Question 35

Which of the following is an example of e-commerce?

A) Julia bought handicraft from a local market.
B) Tabatha bought a cell phone in an exchange offer at an exhibition.
C) Arthur bought a pair of jeans from the store next to his house.
D) Christopher got shoes delivered at his home after he ordered for it online.

Question 36

Which of the following is an example of full-time self-employment?

A) Angela,who works as a columnist in a local newspaper for 30 hours a week
B) Brandon,who works as an intern in a law firm for less than 35 hours a week
C) Peggy,who has a business of personalized gifts,works for a minimum of 40 hours a week
D) Joey,who is a food critic,works only 14 hours a week

Question 37

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

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 the owner's residence is his or her office.
C) they generally give customers the strongest sense of legitimacy.
D) one can get their business going where he or she lives.

Question 38

_____ refers to the impression of a long-term continuity a business gives others.

A) Intermittence
B) Variance
C) Passé
D) Permanence

Question 39

Which of the following is the greatest problem faced by home-based entrepreneurs?

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

Question 40

Which of the following is a reason why more new businesses start on a part-time basis?

A) The cost of entry and exit is low.
B) There is lack of volatility.
C) There is a broad window of opportunity.
D) The part-time workforce is very small.

Question 41

Which of the following is true about a hosting package?

A) It should include at least 1 terabyte of traffic a month for an informational site.
B) It should give at least five web pages of space to tell a story.
C) It should include at least two e-mail accounts using ones domain name.
D) It should include an online website editor so one can make changes to his or her site without buying web-authoring software.

Question 42

_____ refers to a fee the service levels on a person or a firm for any variety of problems related to the sale.

A) Payback
B) Overhead cost
C) Chargeback
D) Optional cost

Question 43

A(n)_____ refers to a private individual or household that is the end-user of a product or service.

A) producer
B) intermediary
C) consumer
D) beneficiary

Question 44

Which of the following is true about business-to-business (B2B)transactions?

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

Question 45

Smith & Roden Enterprises (SRE),a law firm,paid a leading search engine to put their company's website at the top of the search engine's search list.This form of advertising used by SRE for promotion of their firm is known as _____.

A) sponsored link
B) embedded placement
C) trackback submitter
D) benchmarking

Question 46

_____ is a general approach to website design intended to result in the site being displayed toward the beginning of a search engine's listing for that term.

A) Sponsored link
B) Embedded placement
C) Trackback submitter
D) Search engine optimization

Question 47

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 48

Which of the following is a free way to get one's name and business known?

A) Through improving the search engine optimization of one's business
B) Tele marketing
C) Distributing business cards,stationery,printed newsletters,and brochures
D) Making informed comments on blogs and discussion forums related to one's business

Question 49

Which of the following part-time business approaches does the door-to-door model represent?

A) Auctioning
B) Consignment tracking
C) Home retail
D) Mail order

Question 50

Cathy has created a website for her shop of homemade chocolates and scented candles.Apart from traditional retailing,she sends e-mails to the people in her neighborhood.She also informs customers about various promotional offers through pamphlets.Which of the following techniques best describes Cathy's overall marketing method?

A) Embedded marketing
B) Digital marketing
C) Multichannel marketing
D) Word-of-mouth marketing

Question 51

Which of the following is true of the eBay website?

A) The eBay method of auctioning means one pays a fee for posting his or her 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 any anonymity.
D) On eBay,one can list a single item for sale only by creating a website to support his or her effort.

Question 52

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

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

Question 53

When an individual buys products like shoes,music,or cell phones online,it is referred to as _____ type of e-commerce.

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

Question 54

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

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

Question 55

Which of the following is true with regard to home retail?

A) The disadvantages of home businesses include the slow speed and difficulty of setup.
B) The ability to do the work away from home and employer minimizes potential conflicts.
C) The advantage of home retail is that it provides a high steady income.
D) The high cost of getting started is one of the drawbacks of home retail.

Question 56

An auction in which the low bid gets the business or wins is known as a _____ auction.

A) reserve
B) buyout
C) forward
D) reverse

Question 57

_____ price is a minimum acceptable selling price in an auction.

A) Absolute
B) Reserve
C) Forward
D) Small-value

Question 58

Which of the following is true about RSS feeds?

A) RSS feeds are used by all websites on the Internet to push content out to customers.
B) RSS feeds sends whatever web material is specified to subscribers to that feed.
C) RSS stands for "really simple sequence."
D) RSS feeds can be read in many browsers but not with special readers.

Question 59

A web page in which entries are posted in reverse chronological order is a known as a:

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

Question 60

Which of the following is an example of a search engine?

A) AOL
B) Facebook
C) LinkedIn
D) MySpace

Question 61

Which of the following activities mimics multilevel marketing?

A) Forward networking
B) Reserved auctioning
C) Counterfeit catalog selling
D) Illegal pyramid schemes

Question 62

Which of the following is considered an advantage of stand retailing?

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

Question 63

In stand retail,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 64

Which of the following is a good technique to counter undercapitalization in part-time businesses?

A) Aggrandizing
B) Zoning
C) Bootstrapping
D) Offshoring

Question 65

The assignment of work to others over whom one has power is referred to as:

A) delegation.
B) adverse possession.
C) benchmarking.
D) zoning.

Question 66

For part-time businesses,_____ refers to the documented permission from the government to run a business.

A) bootstrapping
B) benchmarking
C) licensing
D) zoning

Question 67

Contracting with people or companies outside one's business to get work done for the business is known as:

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

Question 68

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

A) Full-time sales with only a part-time involvement from a person
B) High potential for competing offers
C) Less amount of time before payout
D) Complete lack of inventory

Question 69

One of the most ancient forms of small business is:

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

Question 70

An approach to selling in which the salesperson recruits customers to become distributors of the product or service to others is known as _____.

A) network marketing
B) auctioning
C) catalog selling
D) online marketing

Question 71

Undercapitalization refers to:

A) not having enough money available to the business to cover shortfalls in sales or profits.
B) not having enough money to capitalize on new business ventures.
C) finding a low-cost or no-cost way to do something.
D) not having enough money available to start a part-time business.

Question 72

In door-to-door selling,_____ refers to getting the customer to agree to buy.

A) opening
B) promoting
C) auctioning
D) closing

Question 73

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

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

Question 74

Finding a low-cost or no-cost way of doing business is called _____.

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

Question 75

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 76

Which of the following represents a disadvantage of the 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 the owner
D) High setup costs

Question 77

Which of the following is true of home businesses?

A) It is very difficult to set up.
B) It requires a very high initial capital to start up.
C) It does not allow one to work away from his or her employer.
D) It provides highly variable income.

Question 78

All of the following are success factors to "stand retail" EXCEPT that:

A) it tends to be either semipermanent ones or movable ones.
B) it needs to be built in places where there is less foot or vehicle traffic.
C) it can be quickly established.
D) it does not require a lot of investment in inventory.

Question 79

Equity refers to:

A) the ownership of a business as a whole.
B) the ownership of a portion of a business.
C) finding a low cost or no cost way to do a business.
D) acquiring permission from the government to do a part-time business.

Question 80

Which of the following is true with regard to the consignment approach of selling?

A) They permit full-time sales only with full-time involvement from a person.
B) They are high-risk level undertakings.
C) They have low profitability because of agent's fees.
D) They have no flexibility despite variety of consignment agents and agencies available.