Question 1

Small Business Administration microloans are based on the borrowers' integrity rather than collateral and credit history.

Accepted Answer

A) True 
 B)False

Question 2

An entrepreneurial team is a group of experienced managers who share the same skills and abilities.

Accepted Answer

A) True 
 B)False

Question 3

Most entrepreneurs are more interested in personal achievement than in power.

Accepted Answer

A) True 
 B)False

Question 4

Many micropreneurs are home-based business owners.

Accepted Answer

A) True 
 B)False

Question 5

The principles of management of a large business are similar to the principles of management of a small business.

Accepted Answer

A) True 
 B)False

Question 6

The burst of the dot com bubble caused venture capitalists to limit their funding of new businesses.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

The U.S.government offers "investor visas" to attract more entrepreneurs.

Accepted Answer

A) True 
 B)False

Question 9

The Small Business Administration's microloan program awards loans to entrepreneurs based primarily on their:

Accepted Answer

A)  collateral.
B)  credit history.
C)  previous business success.
D)  integrity and sound business ideAE) All of the above
F) None of the above

Question 10

Many business started by entrepreneurs have grown into major corporations employing thousands of workers.

Accepted Answer

A) True 
 B)False

Question 11

Micropreneurs are exempt from the local ordinances that restrict home-based businesses from operating in residential areas.

Accepted Answer

A) True 
 B)False

Question 12

The Internet provides a resource for entrepreneurs for information regarding the steps needed to take their business online.

Accepted Answer

A) True 
 B)False

Question 13

Venture capitalists prefer investing in smaller start up businesses in order to reduce their overall risk.

Accepted Answer

A) True 
 B)False

Question 14

The easiest businesses to start also have the least growth potential and the greatest failure rates.

Accepted Answer

A) True 
 B)False

Question 15

As a high net worth individual,Allison searches for growth firms in need of additional funding to achieve their goals.In return for this ____________,Allison expects to assume ownership in the business.

Accepted Answer

A)  analysis
B)  venture capital
C)  corporate loan
D)  securities investmentE) A) and D)
F) All of the above

Question 16

Entrepreneurship is:

Accepted Answer

A)  managing businesses for others.
B)  a controlling interest in the ownership of a corporation.
C)  managing businesses that operate in multiple countries.
D)  accepting the risk of starting and running a business.E) A) and B)
F) B) and C)

Question 17

When comparing small businesses to their larger competitors,it is clear that:

Accepted Answer

A)  bigger is always better.
B)  small firms can always outperform big firms on a level playing field.
C)  small firms often can offer more personalized customer services than big firms.
D)  small firms are slower to respond to opportunities than are large firms.E) A) and B)
F) None of the above

Question 18

Which of the following suggestions would an experienced business owner offer to help someone who is thinking about starting a business venture?

Accepted Answer

A)  Avoid the temptation of buying an existing firm.Build your own reputation and make your own mistakes.
B)  Gain experience by working for a successful businessperson.
C)  Postpone consulting with an accountant or lawyer until you can afford their services.
D)  Jump in quickly,before the market conditions change and opportunities are lost.E) B) and D)
F) B) and C)

Question 19

Carlos hopes to start his own business.He needs to avoid talking to other small business owners about his plans because they might steal his ideas.

Accepted Answer

A) True 
 B)False

Question 20

A Small Business Investment Company SBIC) is an) :

Accepted Answer

A)  agency of the federal government that loans money to high tech firms.
B)  private investment company that is licensed by the SBA to make loans to small businesses.
C)  private firm that offers loans to small businesses in return for a share of ownership in the firm.
D)  agency set up by state governments to provide managerial advice and support to small businesses.E) B) and C)
F) A) and C)

Exam 6: Entrepreneurship and Starting a Small Business

Small Business Administration microloans are based on the borrowers' integrity rather than collateral and credit history.

Correct AnswerverifiedShow Answer

The Internet provides a resource for entrepreneurs for information regarding the steps needed to take their business online.

Correct AnswerverifiedShow Answer

Carlos hopes to start his own business.He needs to avoid talking to other small business owners about his plans because they might steal his ideas.

Correct AnswerverifiedShow Answer

Many micropreneurs are home-based business owners.

Correct AnswerverifiedShow Answer

Most entrepreneurs are more interested in personal achievement than in power.

Correct AnswerverifiedShow Answer

The easiest businesses to start also have the least growth potential and the greatest failure rates.

Correct AnswerverifiedShow Answer

Many business started by entrepreneurs have grown into major corporations employing thousands of workers.

Correct AnswerverifiedShow Answer

As a high net worth individual,Allison searches for growth firms in need of additional funding to achieve their goals.In return for this ____________,Allison expects to assume ownership in the business.

Correct AnswerverifiedShow Answer

The Small Business Administration's microloan program awards loans to entrepreneurs based primarily on their:

Correct AnswerverifiedShow Answer

Venture capitalists prefer investing in smaller start up businesses in order to reduce their overall risk.

Correct AnswerverifiedShow Answer

An entrepreneurial team is a group of experienced managers who share the same skills and abilities.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Micropreneurs are exempt from the local ordinances that restrict home-based businesses from operating in residential areas.

Correct AnswerverifiedShow Answer

When comparing small businesses to their larger competitors,it is clear that:

Correct AnswerverifiedShow Answer

The burst of the dot com bubble caused venture capitalists to limit their funding of new businesses.

Correct AnswerverifiedShow Answer

The principles of management of a large business are similar to the principles of management of a small business.

Correct AnswerverifiedShow Answer

Entrepreneurship is:

Correct AnswerverifiedShow Answer

Which of the following suggestions would an experienced business owner offer to help someone who is thinking about starting a business venture?

Correct AnswerverifiedShow Answer

The U.S.government offers "investor visas" to attract more entrepreneurs.

Correct AnswerverifiedShow Answer

A Small Business Investment Company SBIC) is an) :

Correct AnswerverifiedShow Answer

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