Question 1

Which of the following is not a reason stated for small business failure?

Accepted Answer

A)   Managerial incompetence
B)   Inadequate financial planning
C)   Buying too little on credit and not being lenient enough with your credit paying customers
D)   Borrowing money without a plan of how and when you will repay the debtE) All of the above
F) A) and B)

Question 2

Small businesses are important to the U.S. economy because:

Accepted Answer

A)   they fill in the gaps when large businesses want to let workers go on vacation or when large businesses want to temporarily cease production.
B)   banks and other financial services companies would not have borrowing customers, because small businesses borrow more than large businesses.
C)   they pay most of the tax revenue collected by the U.S. government.
D)   they create about 65% of new jobs each year and generate over 50% of the U.S. GDP.E) B) and D)
F) All of the above

Question 3

When Kelsey began the Cookie Kitchen, she located the operation at a small business center to get help with accounting, legal advice, and secretarial help for a very low cost. Electing to join the incubator helped her company to survive because it provided assistance while her company was in its infancy.

Accepted Answer

A) True 
 B)False

Question 4

Due in part to government support, the majority of U.S. small businesses are involved in exporting.

Accepted Answer

A) True 
 B)False

Question 5

Because of the stress of being in business for yourself, it's important that entrepreneurs have people around them to help replenish their enthusiasm.

Accepted Answer

A) True 
 B)False

Question 6

State and city governments have promoted facilities where new businesses can open up shop and share common services such as secretarial, accounting, and legal services. Due to their remarkable success rate, _______________ continue to grow in popularity

Accepted Answer

A)   enterprise zones
B)   incubators
C)   intrapreneurial development centers
D)   venture farmsE) None of the above
F) A) and B)

Question 7

Kylie is employed by Street Wheels, a large corporation that produces accessories for scooters, bicycles, and other children's vehicles. She is a creative force within the company and has helped create and launch several new successful products. Kylie is an example of an intrapreneur.

Accepted Answer

A) True 
 B)False

Question 8

Although successful entrepreneurs are more tolerant of uncertainty,

Accepted Answer

A)   they seldom start another business after a failure.
B)   they develop mental games to see themselves through the risk game, especially.
C)   they always protect themselves from failure by taking out lots of insurance.
D)   they strive to take calculated risks.E) A) and B)
F) None of the above

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Bad luck is the most often reported cause for small business failure.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following best describes entrepreneurial personality traits?

Accepted Answer

A)   Tolerant of uncertainty and highly energetic.
B)   Risk averse and self-nurturing.
C)   Appreciate direction from others and risk averse.
D)   Prefer to work less hours and prefer to give directions and let others do the footwork.E) A) and B)
F) A) and C)

Question 12

Since creating a detailed business plan is almost impossible, entrepreneurs should focus on the other tasks needed to get their firm started.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following will not help your small business succeed?

Accepted Answer

A)   Services you perform are easily replicated by larger companies, such as online banking.
B)   You provide a unique service that requires a significant amount of personal attention such as a service that provides in-home care for seniors.
C)   Investing in a franchise.
D)   Your product is not easily mass produced, like professional photography.E) A) and D)
F) A) and C)

Question 14

One advantage enjoyed by small businesses in international markets is that overseas buyers like dealing with individuals rather than large corporate bureaucracies.

Accepted Answer

A) True 
 B)False

Question 15

Affiliate marketing is a web-based business strategy that:

Accepted Answer

A)   relies on customers that enter the sites of large companies such as Gap and Nike.
B)   asks you to offer the names and e-mail addresses of 10 of your friends who may be interested in the products or services the website is selling.
C)   is currently illegal, but difficult to stop.
D)   rewards individuals who are willing to link a company's website to their blog or social network page.E) None of the above
F) A) and C)

Question 16

Studies show that seniority is the most important criterion when selecting employees for promotion to management positions.

Accepted Answer

A) True 
 B)False

Exam 6: Entrepreneurship and Starting a Small Business

Although successful entrepreneurs are more tolerant of uncertainty,

Correct Answer
verified

Since creating a detailed business plan is almost impossible, entrepreneurs should focus on the other tasks needed to get their firm started.

Correct Answer
verified

Because of the stress of being in business for yourself, it's important that entrepreneurs have people around them to help replenish their enthusiasm.

Correct Answer
verified

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

Correct Answer
verified

Affiliate marketing is a web-based business strategy that:

Correct Answer
verified

Due in part to government support, the majority of U.S. small businesses are involved in exporting.

Correct Answer
verified

Which of the following is not a reason stated for small business failure?

Correct Answer
verified

Bad luck is the most often reported cause for small business failure.

Correct Answer
verified

Correct Answer
verified

Which of the following best describes entrepreneurial personality traits?

Correct Answer
verified

Which of the following will not help your small business succeed?

Correct Answer
verified

State and city governments have promoted facilities where new businesses can open up shop and share common services such as secretarial, accounting, and legal services. Due to their remarkable success rate, _______________ continue to grow in popularity

Correct Answer
verified

One advantage enjoyed by small businesses in international markets is that overseas buyers like dealing with individuals rather than large corporate bureaucracies.

Correct Answer
verified

Studies show that seniority is the most important criterion when selecting employees for promotion to management positions.

Correct Answer
verified

Small businesses are important to the U.S. economy because:

Correct Answer
verified

Kylie is employed by Street Wheels, a large corporation that produces accessories for scooters, bicycles, and other children's vehicles. She is a creative force within the company and has helped create and launch several new successful products. Kylie is an example of an intrapreneur.

Correct Answer
verified

Exam 6: Entrepreneurship and Starting a Small Business

Although successful entrepreneurs are more tolerant of uncertainty,

Correct AnswerverifiedShow Answer

Since creating a detailed business plan is almost impossible, entrepreneurs should focus on the other tasks needed to get their firm started.

Correct AnswerverifiedShow Answer

Because of the stress of being in business for yourself, it's important that entrepreneurs have people around them to help replenish their enthusiasm.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Affiliate marketing is a web-based business strategy that:

Correct AnswerverifiedShow Answer

Due in part to government support, the majority of U.S. small businesses are involved in exporting.

Correct AnswerverifiedShow Answer

Which of the following is not a reason stated for small business failure?

Correct AnswerverifiedShow Answer

Bad luck is the most often reported cause for small business failure.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following best describes entrepreneurial personality traits?

Correct AnswerverifiedShow Answer

Which of the following will not help your small business succeed?

Correct AnswerverifiedShow Answer

State and city governments have promoted facilities where new businesses can open up shop and share common services such as secretarial, accounting, and legal services. Due to their remarkable success rate, _______________ continue to grow in popularity

Correct AnswerverifiedShow Answer

One advantage enjoyed by small businesses in international markets is that overseas buyers like dealing with individuals rather than large corporate bureaucracies.

Correct AnswerverifiedShow Answer

Studies show that seniority is the most important criterion when selecting employees for promotion to management positions.

Correct AnswerverifiedShow Answer

Small businesses are important to the U.S. economy because:

Correct AnswerverifiedShow Answer

Kylie is employed by Street Wheels, a large corporation that produces accessories for scooters, bicycles, and other children's vehicles. She is a creative force within the company and has helped create and launch several new successful products. Kylie is an example of an intrapreneur.

Correct AnswerverifiedShow Answer

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