Question 1

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 idea.E) B) and D)
F) B) and C)

Question 2

You can negotiate a win-win situation by offering to manage an established small business.You win from the experience;the owner wins with free time.
Often times it is difficult to start your own business when you lack the capital.One way to become an owner is to offer to manage a business that is already established.You gain experience and the owner gets free time.

Accepted Answer

A) True 
 B)False

Question 3

The SBA's ________ program provides export financing opportunities for small businesses.

Accepted Answer

A)  global trade funding
B)  Homeland security funding
C)  Export Express loan
D)  International Monetary FundingE) A) and B)
F) All of the above

Question 4

Commercial loan officers and insurance agents offer expert assistance that can be valuable to small business owners.

Accepted Answer

A) True 
 B)False

Question 5

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.
Intrapreneurs are creative people who work within corporations to launch new products and generate new profits.

Accepted Answer

A) True 
 B)False

Question 6

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 D)
F) None of the above

Question 7

According to the Reaching Beyond our Borders box,how do small business owners use technology to keep their labor costs down?

Accepted Answer

A)  They have purchased accounting and bookkeeping software like,Quickbooks™
B)  Most have gone in debt to retrofit their manufacturing facilities to include robots on the production lines
C)  They only do business with sweat shops
D)  They solicit the services of Elance.com and other online services to contractually hire graphic designers and other virtual assistants from around the globeE) B) and C)
F) A) and B)

Question 8

Entrepreneurs seeking financial support from bankers and potential investors should:

Accepted Answer

A)  be vague regarding their creative business plan to avoid having their idea stolen.
B)  seek the bankers' and investors' assistance in developing their business plan.
C)  create a detailed business plan to help the bankers and investors understand why this business will succeed.
D)  ask for a relatively small amount of capital initially,postponing a full funding request until the investors better understand the business concept.E) C) and D)
F) A) and D)

Question 9

An effective business plan analyzes the competition and identifies the resources required to profitably serve a target market.
An effective business plan must consider all the aspects of operating a new business in detail.

Accepted Answer

A) True 
 B)False

Question 10

Conversations with people who start their own business often reveal that:

Accepted Answer

A)  many small business owners got their entrepreneurial idea from a previous job.
B)  it is unusual for experienced corporate managers to start their own businesses.
C)  the most successful entrepreneurs often start their business ventures right after high school.
D)  most small business owners begin with significant personal wealth.E) A) and B)
F) B) and C)

Question 11

Entrepreneurs learn that there are many legal and financial issues involved in starting their business.The best way for the small business owner to resolve these issues and protect the firm's resources is:

Accepted Answer

A)  for the owner(s) to trust his/her common sense.
B)  to hire a full-time lawyer and accountant who work exclusively for the small business.
C)  defer making decisions regarding these issues until the company is bigger.
D)  seek and pay for expert guidance and assistance.E) A) and B)
F) A) and C)

Question 12

Business incubators are usually government-funded facilities intended to:

Accepted Answer

A)  provide health care benefits for small business owners and their families.
B)  offer startup firms low-cost office space and basic business services.
C)  help rebuild the nation's infrastructure.
D)  assist foreign investors in identifying business opportunities in the U.S.E) A) and B)
F) All of the above

Question 13

An entrepreneurial team consists of:

Accepted Answer

A)  managers with similar skills,abilities,and interests.
B)  experienced professionals from different areas of business.
C)  a group of wealthy investors who share a vision for a product.
D)  representatives from management,labor,and the government who work together to solve a company's problems in a creative way.E) A) and D)
F) B) and C)

Question 14

Small businesses often have advantages in international markets.One advantage is:

Accepted Answer

A)  a greater expertise in managing the paperwork required to sell goods in international markets.
B)  a better understanding of the cultural differences involved.
C)  individualized customer service as opposed to impersonal corporate bureaucracies.
D)  the ability to obtain financing through the International Monetary FunD.Small companies can give more personal service and more undivided attention,because each overseas account is a major source of business to them.E) A) and D)
F) None of the above

Question 15

Entrepreneurs are motivated by the desire to earn a profit.

Accepted Answer

A) True 
 B)False

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) None of the above
F) A) and B)

Question 17

Big businesses do not serve all the needs of a market.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Most business opportunities offer entrepreneurs high levels of security and profits.

Accepted Answer

A) True 
 B)False

Question 20

Exporting offers small businesses opportunities to reduce their dependence on domestic sales and extend product lives.

Accepted Answer

A) True 
 B)False

Exam 6: Entrepreneurship and Starting a Small Business

Entrepreneurship is:

Correct Answer
verified

Entrepreneurs seeking financial support from bankers and potential investors should:

Correct Answer
verified

Commercial loan officers and insurance agents offer expert assistance that can be valuable to small business owners.

Correct Answer
verified

Correct Answer
verified

Conversations with people who start their own business often reveal that:

Correct Answer
verified

Although successful entrepreneurs are more tolerant of uncertainty,

Correct Answer
verified

Exporting offers small businesses opportunities to reduce their dependence on domestic sales and extend product lives.

Correct Answer
verified

Entrepreneurs are motivated by the desire to earn a profit.

Correct Answer
verified

An effective business plan analyzes the competition and identifies the resources required to profitably serve a target market. An effective business plan must consider all the aspects of operating a new business in detail.

Correct Answer
verified

Big businesses do not serve all the needs of a market.

Correct Answer
verified

Small businesses often have advantages in international markets.One advantage is:

Correct Answer
verified

Most business opportunities offer entrepreneurs high levels of security and profits.

Correct Answer
verified

An entrepreneurial team consists of:

Correct Answer
verified

According to the Reaching Beyond our Borders box,how do small business owners use technology to keep their labor costs down?

Correct Answer
verified

Entrepreneurs learn that there are many legal and financial issues involved in starting their business.The best way for the small business owner to resolve these issues and protect the firm's resources is:

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Business incubators are usually government-funded facilities intended to:

Correct Answer
verified

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

Correct Answer
verified

The SBA's ________ program provides export financing opportunities for small businesses.

Correct Answer
verified

Exam 6: Entrepreneurship and Starting a Small Business

Entrepreneurship is:

Correct AnswerverifiedShow Answer

Entrepreneurs seeking financial support from bankers and potential investors should:

Correct AnswerverifiedShow Answer

Commercial loan officers and insurance agents offer expert assistance that can be valuable to small business owners.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Conversations with people who start their own business often reveal that:

Correct AnswerverifiedShow Answer

Although successful entrepreneurs are more tolerant of uncertainty,

Correct AnswerverifiedShow Answer

Exporting offers small businesses opportunities to reduce their dependence on domestic sales and extend product lives.

Correct AnswerverifiedShow Answer

Entrepreneurs are motivated by the desire to earn a profit.

Correct AnswerverifiedShow Answer

An effective business plan analyzes the competition and identifies the resources required to profitably serve a target market. An effective business plan must consider all the aspects of operating a new business in detail.

Correct AnswerverifiedShow Answer

Big businesses do not serve all the needs of a market.

Correct AnswerverifiedShow Answer

Small businesses often have advantages in international markets.One advantage is:

Correct AnswerverifiedShow Answer

Most business opportunities offer entrepreneurs high levels of security and profits.

Correct AnswerverifiedShow Answer

An entrepreneurial team consists of:

Correct AnswerverifiedShow Answer

According to the Reaching Beyond our Borders box,how do small business owners use technology to keep their labor costs down?

Correct AnswerverifiedShow Answer

Entrepreneurs learn that there are many legal and financial issues involved in starting their business.The best way for the small business owner to resolve these issues and protect the firm's resources is:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Business incubators are usually government-funded facilities intended to:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The SBA's ________ program provides export financing opportunities for small businesses.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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