Question 1

Hoping to qualify for a microloan from the Small Business Administration,Magdalena's business plan clearly identifies her strategy to profitably serve a target market.Unfortunately,her lack of business experience and limited collateral greatly reduce her chances of obtaining the microloan.

Accepted Answer

A) True 
 B)False

Question 2

One reason we have seen continued growth in home-based businesses is:

Accepted Answer

A)  the location offers a more secure operational environment.
B)  affordable computer and information technology makes it easier to compete.
C)  people need something to do while they wait to return to work for a large corporation.
D)  it is less risky to start a home-based business than other types of entrepreneurial ventures.E) B) and C)
F) A) and D)

Question 3

Of all nonfarm businesses in the United States,almost 97 percent are considered small by the Small Business Administration SBA)standards.

Accepted Answer

A) True 
 B)False

Question 4

A ________ refers to people with unsatisfied wants and needs who are willing and able to buy a product or service.

Accepted Answer

A)  market
B)  consumer cooperative
C)  consumer collective
D)  buyer's cooperativeE) B) and D)
F) A) and C)

Question 5

Questions about how much authority to delegate,and to whom,are easier issues for a family-run businesses since they "can't fire family."

Accepted Answer

A) True 
 B)False

Question 6

A creative person working within a corporation to launch new products and generate new profits is known as an) :

Accepted Answer

A)  arbitrator.
B)  micropreneur.
C)  macropreneur.
D)  intrapreneur.E) A) and B)
F) A) and C)

Question 7

Jason,Robin,and Ian currently work in the marketing department of a large corporation.They have similar backgrounds and training and are thinking about leaving their company to start their own business.Successful entrepreneurial teams are comprised of these types of people because similarities in knowledge and skill ensure harmony and consistency in their new business.

Accepted Answer

A) True 
 B)False

Question 8

After personal savings,the next largest source of capital for entrepreneurs is from:

Accepted Answer

A)  large multinational banks.
B)  the Small Business Administration.
C)  state and local governments.
D)  friends and family.E) B) and C)
F) A) and D)

Question 9

The executive summary section of the business plan contains:

Accepted Answer

A)  computerized information that readers can access interactively.
B)  information that will capture the attention of bankers and other investors who receive many business plans every day.
C)  qualifications,experience,and education of the entrepreneur and prospective employees.
D)  a financial summary prepared by the business' accountant.E) B) and D)
F) A) and B)

Question 10

Anna recently left a large insurance firm and opened a home-based business preparing medical transcriptions for doctors.Based on recent statistics,she can expect:

Accepted Answer

A)  a negative reaction from friends and family who wonder when she will get a "real" job.
B)  the emergence of affordable technology will make it less challenging for her to compete with larger firms offering the same service.
C)  the government will discourage her attempts to create a home-based business in the hopes that she will opt for locating in an enterprise zone.
D)  to find security,routine and a paycheck from her new enterprise.E) B) and D)
F) C) and D)

Question 11

Due to the fact that Peppy has worked in the field of marketing for a large corporation,

Accepted Answer

A)  there is no need to consider an entrepreneurial team for start-up due to the fact that all other management functions are served by marketing.
B)  he can skip any marketing research steps that the SBA recommends.
C)  he knows that the type of business he wants to start may be difficult to develop,but it has a tremendous amount of security due to its promise of long term survival.
D)  he plans to put together an entrepreneurial team of experts that will complement his expertise.E) A) and D)
F) B) and C)

Question 12

Increased participation in small business exporting owes credit to _________.

Accepted Answer

A)  political constituents who have made in-roads abroad
B)  large events such as the Olympics that have brought attention to the potential in world markets
C)  technological advances such as the Internet and PayPal for safely fulfilling orders
D)  partnerships that small businesses have formed with large businessesE) A) and D)
F) B) and C)

Question 13

Corporate downsizing reduces the opportunities for home-based businesses.

Accepted Answer

A) True 
 B)False

Question 14

One reason why many U.S.small businesses are not involved in exporting is:

Accepted Answer

A)  there is a limited market for their products.
B)  the government's new homeland security programs limit opportunities for small businesses.
C)  many of these firms do not know how to get started.
D)  U.S.products are perceived as inferior.E) C) and D)
F) A) and B)

Question 15

List and discuss at least three causes of small business failure.

Accepted Answer

Answers will vary,however,the student sh...

Question 16

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 emails of ten of your friends who may be interested in the products or services the web-site 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) B) and D)
F) A) and D)

Question 17

If you go through the exercise of preparing a business plan,only to determine that you need twice the amount of money to start the business than you have,the SBA and other expert organizations encourage you to go ahead with your plans because if you understand the market,you can use the revenues you accrue to make-up the short-fall.

Accepted Answer

A) True 
 B)False

Question 18

Austin's interest in computers helped fuel his design of a new hard drive that is far superior to anything on the market.Austin's product and business plan will likely attract several sources of financing if he is willing to give up part ownership in his company.

Accepted Answer

A) True 
 B)False

Question 19

Economist Bruce Kirchhoff contends that business failures are much lower than traditionally reported.

Accepted Answer

A) True 
 B)False

Question 20

Attracting qualified workers presents a problem for small businesses since they usually offer less money,fewer benefits,and less room for advancement than larger firms offer.

Accepted Answer

A) True 
 B)False

Exam 6: Entrepreneurship and Starting a Small Business

Austin's interest in computers helped fuel his design of a new hard drive that is far superior to anything on the market.Austin's product and business plan will likely attract several sources of financing if he is willing to give up part ownership in his company.

Correct Answer
verified

A ________ refers to people with unsatisfied wants and needs who are willing and able to buy a product or service.

Correct Answer
verified

Affiliate marketing is a web-based business strategy that:

Correct Answer
verified

Hoping to qualify for a microloan from the Small Business Administration,Magdalena's business plan clearly identifies her strategy to profitably serve a target market.Unfortunately,her lack of business experience and limited collateral greatly reduce her chances of obtaining the microloan.

Correct Answer
verified

Due to the fact that Peppy has worked in the field of marketing for a large corporation,

Correct Answer
verified

Anna recently left a large insurance firm and opened a home-based business preparing medical transcriptions for doctors.Based on recent statistics,she can expect:

Correct Answer
verified

Corporate downsizing reduces the opportunities for home-based businesses.

Correct Answer
verified

Economist Bruce Kirchhoff contends that business failures are much lower than traditionally reported.

Correct Answer
verified

Correct Answer
verified

After personal savings,the next largest source of capital for entrepreneurs is from:

Correct Answer
verified

Increased participation in small business exporting owes credit to _________.

Correct Answer
verified

The executive summary section of the business plan contains:

Correct Answer
verified

One reason we have seen continued growth in home-based businesses is:

Correct Answer
verified

Questions about how much authority to delegate,and to whom,are easier issues for a family-run businesses since they "can't fire family."

Correct Answer
verified

List and discuss at least three causes of small business failure.

Correct Answer
verified
Answers will vary,however,the student sh...
View Answer

A creative person working within a corporation to launch new products and generate new profits is known as an) :

Correct Answer
verified

One reason why many U.S.small businesses are not involved in exporting is:

Correct Answer
verified

Attracting qualified workers presents a problem for small businesses since they usually offer less money,fewer benefits,and less room for advancement than larger firms offer.

Correct Answer
verified

Of all nonfarm businesses in the United States,almost 97 percent are considered small by the Small Business Administration SBA)standards.

Correct Answer
verified

Correct Answer
verified

Exam 6: Entrepreneurship and Starting a Small Business

Austin's interest in computers helped fuel his design of a new hard drive that is far superior to anything on the market.Austin's product and business plan will likely attract several sources of financing if he is willing to give up part ownership in his company.

Correct AnswerverifiedShow Answer

A ________ refers to people with unsatisfied wants and needs who are willing and able to buy a product or service.

Correct AnswerverifiedShow Answer

Affiliate marketing is a web-based business strategy that:

Correct AnswerverifiedShow Answer

Hoping to qualify for a microloan from the Small Business Administration,Magdalena's business plan clearly identifies her strategy to profitably serve a target market.Unfortunately,her lack of business experience and limited collateral greatly reduce her chances of obtaining the microloan.

Correct AnswerverifiedShow Answer

Due to the fact that Peppy has worked in the field of marketing for a large corporation,

Correct AnswerverifiedShow Answer

Anna recently left a large insurance firm and opened a home-based business preparing medical transcriptions for doctors.Based on recent statistics,she can expect:

Correct AnswerverifiedShow Answer

Corporate downsizing reduces the opportunities for home-based businesses.

Correct AnswerverifiedShow Answer

Economist Bruce Kirchhoff contends that business failures are much lower than traditionally reported.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

After personal savings,the next largest source of capital for entrepreneurs is from:

Correct AnswerverifiedShow Answer

Increased participation in small business exporting owes credit to _________.

Correct AnswerverifiedShow Answer

The executive summary section of the business plan contains:

Correct AnswerverifiedShow Answer

One reason we have seen continued growth in home-based businesses is:

Correct AnswerverifiedShow Answer

Questions about how much authority to delegate,and to whom,are easier issues for a family-run businesses since they "can't fire family."

Correct AnswerverifiedShow Answer

List and discuss at least three causes of small business failure.

Correct AnswerverifiedAnswers will vary,however,the student sh...View AnswerShow Answer

A creative person working within a corporation to launch new products and generate new profits is known as an) :

Correct AnswerverifiedShow Answer

One reason why many U.S.small businesses are not involved in exporting is:

Correct AnswerverifiedShow Answer

Attracting qualified workers presents a problem for small businesses since they usually offer less money,fewer benefits,and less room for advancement than larger firms offer.

Correct AnswerverifiedShow Answer

Of all nonfarm businesses in the United States,almost 97 percent are considered small by the Small Business Administration SBA)standards.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Answers will vary,however,the student sh...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified