Question 1

The two primary concerns of an entrepreneur starting a new business are planning and record keeping.

Accepted Answer

A) True 
 B)False

Question 2

According to the Small Business Administration's definition, small businesses are independently owned and operated.

Accepted Answer

A) True 
 B)False

Question 3

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 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 C)

Question 4

Many micropreneurs are home-based business owners.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following sources of investment is the LEAST likely type available to entrepreneurs?

Accepted Answer

A)   Angel investors
B)   Small Business Administration loans
C)   Venture capitalists
D)   Family and friendsE) None of the above
F) All of the above

Question 6

The most important difference between entrepreneurs and micropreneurs is the focus placed by micropreneurs on balancing the demands of work and family.

Accepted Answer

A) True 
 B)False

Question 7

Eddie is an inventive engineering new graduate who just started working for a large company that makes medical products for both hospital and patient use. One of his primary responsibilities is to initiate and develop new products to complement the firm's current product line. Eddie's position is ________.

Accepted Answer

A)   intrapreneurial
B)   entrepreneurial
C)   an outside consultant for other firms
D)   micropreneurialE) A) and B)
F) A) and C)

Question 8

Entrepreneurs applying for a bank loan should realize that bankers will

Accepted Answer

A)   expect to receive a share of ownership in the business in exchange for their loan.
B)   expect the entrepreneur to provide a business plan.
C)   generally make loans only to small businesses in dot-com related industries.
D)   offer only short-term financing.E) B) and D)
F) None of the above

Question 9

Business incubators provide assistance to established companies attempting to generate foreign sales.

Accepted Answer

A) True 
 B)False

Question 10

An intrapreneur is the creative person who starts and manages a nonprofit organization.

Accepted Answer

A) True 
 B)False

Question 11

Caleb inherited a successful dry cleaning business from his parents. Just as his parents did, he offered high-quality service to all the customers he served. As the surrounding towns grew, several customers recommended that Caleb expand the business to offer service in new locations. He chose to maintain only one operation, so as not to lose control and to keep his work life and home life balanced. Caleb is a good example of a(n)  ________.

Accepted Answer

A)   small business affiliate
B)   intrapreneur
C)   micropreneur
D)   enterprise zone participantE) A) and C)
F) A) and B)

Question 12

Using the analogy of boulders vs. sand for filling a hole, the textbook points out that

Accepted Answer

A)   small businesses are employing a record number of employees because they have to work twice as hard at producing the same amount of output as a large competitor.
B)   small businesses can serve niche markets that larger firms do not serve well.
C)   the sand represents the small businesses that start and fail each year, while the boulders represent the large companies whose resources permit them to stay the course.
D)   large companies serve market niches so much better than small companies.E) B) and C)
F) All of the above

Question 13

In order to secure financing for Bitty Bytes, a mobile bakery business that services several large Silicon Valley firms, Betty demonstrated her unwavering aspiration to get her business started by visiting several bankers with ________.

Accepted Answer

A)   her insurance agent.
B)   her business plan.
C)   her venture capitalist.
D)   her idea.E) A) and B)
F) B) and C)

Question 14

Successful entrepreneurs are exclusively motivated by the desire to become rich.

Accepted Answer

A) True 
 B)False

Question 15

The U.S. government's Immigration Act of 1990

Accepted Answer

A)   encouraged entrepreneurs to come to the U.S. through "investor visas."
B)   established a government program to teach American workers displaced by immigration how to start their own businesses.
C)   established guidelines to help entrepreneurs recruit legal aliens as a source of low-cost labor.
D)   proposed an exchange program for American and European entrepreneurs to temporarily live internationally in order to open up foreign branches for their businesses.E) B) and D)
F) B) and C)

Question 16

If you have managerial skills and leadership ability, you also possess the personality to be an entrepreneur.

Accepted Answer

A) True 
 B)False

Question 17

Effective entrepreneurial teams combine

Accepted Answer

A)   creativity with marketing and production experience.
B)   venture financing, tax benefits, and production economies.
C)   scientific abilities, capital investment, and marketing skills.
D)   risk tolerance, debt financing, and international experience.E) All of the above
F) A) and B)

Question 18

Which of the following government agencies is responsible for encouraging the development of small business?

Accepted Answer

A)   Small Business Administration
B)   Federal Trade Commission
C)   Entrepreneur Assistance Center
D)   Federal Microloan AuthorityE) B) and D)
F) B) and C)

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

One of the challenges of running a home-based business is

Accepted Answer

A)   an increase in business risk.
B)   managing the extra time on your hands.
C)   keeping work and family tasks separate.
D)   burdensome tax laws.E) All of the above
F) C) and D)

Exam 6: Entrepreneurship and Starting a Small Business

Effective entrepreneurial teams combine

Correct Answer
verified

An intrapreneur is the creative person who starts and manages a nonprofit organization.

Correct Answer
verified

The most important difference between entrepreneurs and micropreneurs is the focus placed by micropreneurs on balancing the demands of work and family.

Correct Answer
verified

According to the Small Business Administration's definition, small businesses are independently owned and operated.

Correct Answer
verified

If you have managerial skills and leadership ability, you also possess the personality to be an entrepreneur.

Correct Answer
verified

Successful entrepreneurs are exclusively motivated by the desire to become rich.

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Entrepreneurs applying for a bank loan should realize that bankers will

Correct Answer
verified

Which of the following government agencies is responsible for encouraging the development of small business?

Correct Answer
verified

Using the analogy of boulders vs. sand for filling a hole, the textbook points out that

Correct Answer
verified

The two primary concerns of an entrepreneur starting a new business are planning and record keeping.

Correct Answer
verified

One of the challenges of running a home-based business is

Correct Answer
verified

Which of the following sources of investment is the LEAST likely type available to entrepreneurs?

Correct Answer
verified

In order to secure financing for Bitty Bytes, a mobile bakery business that services several large Silicon Valley firms, Betty demonstrated her unwavering aspiration to get her business started by visiting several bankers with ________.

Correct Answer
verified

The U.S. government's Immigration Act of 1990

Correct Answer
verified

Business incubators provide assistance to established companies attempting to generate foreign sales.

Correct Answer
verified

Many micropreneurs are home-based business owners.

Correct Answer
verified

Exam 6: Entrepreneurship and Starting a Small Business

Effective entrepreneurial teams combine

Correct AnswerverifiedShow Answer

An intrapreneur is the creative person who starts and manages a nonprofit organization.

Correct AnswerverifiedShow Answer

The most important difference between entrepreneurs and micropreneurs is the focus placed by micropreneurs on balancing the demands of work and family.

Correct AnswerverifiedShow Answer

According to the Small Business Administration's definition, small businesses are independently owned and operated.

Correct AnswerverifiedShow Answer

If you have managerial skills and leadership ability, you also possess the personality to be an entrepreneur.

Correct AnswerverifiedShow Answer

Successful entrepreneurs are exclusively motivated by the desire to become rich.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Entrepreneurs applying for a bank loan should realize that bankers will

Correct AnswerverifiedShow Answer

Which of the following government agencies is responsible for encouraging the development of small business?

Correct AnswerverifiedShow Answer

Using the analogy of boulders vs. sand for filling a hole, the textbook points out that

Correct AnswerverifiedShow Answer

The two primary concerns of an entrepreneur starting a new business are planning and record keeping.

Correct AnswerverifiedShow Answer

One of the challenges of running a home-based business is

Correct AnswerverifiedShow Answer

Which of the following sources of investment is the LEAST likely type available to entrepreneurs?

Correct AnswerverifiedShow Answer

In order to secure financing for Bitty Bytes, a mobile bakery business that services several large Silicon Valley firms, Betty demonstrated her unwavering aspiration to get her business started by visiting several bankers with ________.

Correct AnswerverifiedShow Answer

The U.S. government's Immigration Act of 1990

Correct AnswerverifiedShow Answer

Business incubators provide assistance to established companies attempting to generate foreign sales.

Correct AnswerverifiedShow Answer

Many micropreneurs are home-based business owners.

Correct AnswerverifiedShow Answer

Correct Answer
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