Question 1

Most entrepreneurs prefer working for someone else.

Accepted Answer

A) True 
 B)False

Question 2

Small Business Administration loans help firms finance their domestic operations. These funds, however, cannot be used to finance exports since the money is provided by U.S. taxpayers.

Accepted Answer

A) True 
 B)False

Question 3

Scarlett is graduating from culinary school soon and she often imagines opening her own comfort food restaurant. Her other passion is skiing in Colorado, where she travels to four or five times every year. As her small business advisor, you believe it necessary to provide her with information that will help her make good business decisions. Which of the following would be helpful for Scarlett to know?

Accepted Answer

A)   Restaurants are relatively easy businesses to start, but are labor intensive and also have the greatest failure rate.
B)   Restaurants are not the easiest type of business to start, but once you get it going, you will have plenty of time for skiing.
C)   Most restaurant owners get rich if they open their own, independent restaurant as opposed to starting a franchised operation.
D)   Franchised operations will take less time on the part of the owner than a regular independently owned operation. If she opens a franchise, she will have more time for creativity in the business, and more time for skiing too.E) C) and D)
F) B) and D) A

Question 4

Arturo is a partner in a firm that specializes in producing vitamins and health food products. While the business is considered small by U.S. standards, he is attempting to persuade his partner to expand internationally. Arturo would list which of the following as an advantage of going global?

Accepted Answer

A)   Exporting can help sell excess inventory.
B)   Marketing programs benefit from the cultural similarities in prospective markets.
C)   Financing can easily be obtained to expand internationally.
D)   Selling your products in other markets reduces their life cycle, making them more attractive.E) A) and D)
F) A) and B)

Question 5

Laila created a new piece of workout gear. She's calling it the Toned Tushie. Although she couldn't initially find potential investors, she secured a personal loan and borrowed additional money from her parents. Her drive to continue believing in her idea and to remain enthusiastic shows that Laila is

Accepted Answer

A)   characteristically self-nurturing.
B)   better suited to managing a nonprofit organization.
C)   unaware of the risks she was taking.
D)   not a true entrepreneur.E) None of the above
F) B) and C)

Question 6

The small business sector that has the best chance of significant growth is legal services.

Accepted Answer

A) True 
 B)False

Question 7

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) B) and C)
F) C) and D)

Question 8

Successful entrepreneurs are self-nurturing. This means they

Accepted Answer

A)   look to others for strength and encouragement.
B)   self-finance their business with no assistance from others.
C)   perform all business operations by themselves.
D)   believe in themselves and their ideas.E) C) and D)
F) A) and C)

Question 9

A small business management course at a community college may offer entrepreneurs an opportunity to

Accepted Answer

A)   meet with experienced entrepreneurs and learn from their advice.
B)   try out ideas on a computer simulation before risking real time and money.
C)   listen to a qualified instructor solve all of the problems of small business owners.
D)   be part of a group that will include angel investors.E) A) and D)
F) A) and B) A

Question 10

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) B) and C)

Question 11

Small business owners often struggle in attracting qualified workers. Which of the following contributes to this problem?

Accepted Answer

A)   Managers in small firms tend to be disrespectful to the workers.
B)   Owners will not often listen to ideas suggested by the workers.
C)   Employee relations are especially poor in small firms.
D)   Many jobs in small firms have low pay and few benefits.E) None of the above
F) A) and B)

Question 12

A National Business Incubator Association study indicates that over 85 percent of incubator graduates remain in business.

Accepted Answer

A) True 
 B)False

Question 13

Enterprise zones are

Accepted Answer

A)   government-owned properties that are available for entrepreneurial ventures at a reduced cost.
B)   similar to incubator facilities but strictly run by city and state governments.
C)   blighted areas that contain toxic materials making them unsuitable for business operations.
D)   specific locations across the U.S. where entrepreneurs can set up shop and receive tax breaks for operating in these areas.E) All of the above
F) B) and C)

Question 14

Valerie wants to start her own small business. If her primary goal is to grow quickly and earn high profits, her best chances would be in the manufacturing sector.

Accepted Answer

A) True 
 B)False  True

Question 15

When Marley created the Mar's Cookie Bars Company, she took advantage of a state-supported incubator that offered her new business low-cost office space and basic services such as accounting, legal advice, and secretarial help. Joining the incubator helped her company to survive because it provided assistance in the critical stage of its early development.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Historically entrepreneurs in the U.S.

Accepted Answer

A)   created wealth for themselves, but have had a minor impact on the economy as a whole.
B)   started many small firms that later became major corporations employing thousands of workers.
C)   experienced success only when they worked in partnership with the federal government.
D)   played an important role, but are less important now in creating jobs and wealth.E) None of the above
F) All of the above

Question 18

Corporate downsizing reduces the opportunities for home-based businesses.

Accepted Answer

A) True 
 B)False

Question 19

The primary concern of micropreneurs is to balance the risk of starting your own business with the desire to build a powerful organization earning significant profits.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 6: Entrepreneurship and Starting a Small Business

Most entrepreneurs prefer working for someone else.

Correct Answer
verified

Small Business Administration loans help firms finance their domestic operations. These funds, however, cannot be used to finance exports since the money is provided by U.S. taxpayers.

Correct Answer
verified

Correct Answer
verified
A

Arturo is a partner in a firm that specializes in producing vitamins and health food products. While the business is considered small by U.S. standards, he is attempting to persuade his partner to expand internationally. Arturo would list which of the following as an advantage of going global?

Correct Answer
verified

Correct Answer
verified

The small business sector that has the best chance of significant growth is legal services.

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

Successful entrepreneurs are self-nurturing. This means they

Correct Answer
verified

A small business management course at a community college may offer entrepreneurs an opportunity to

Correct Answer
verified
A

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

Correct Answer
verified

Small business owners often struggle in attracting qualified workers. Which of the following contributes to this problem?

Correct Answer
verified

A National Business Incubator Association study indicates that over 85 percent of incubator graduates remain in business.

Correct Answer
verified

Enterprise zones are

Correct Answer
verified

Valerie wants to start her own small business. If her primary goal is to grow quickly and earn high profits, her best chances would be in the manufacturing sector.

Correct Answer
verified
True

Correct Answer
verified

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

Correct Answer
verified

Historically entrepreneurs in the U.S.

Correct Answer
verified

Corporate downsizing reduces the opportunities for home-based businesses.

Correct Answer
verified

The primary concern of micropreneurs is to balance the risk of starting your own business with the desire to build a powerful organization earning significant profits.

Correct Answer
verified

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

Correct Answer
verified

Exam 6: Entrepreneurship and Starting a Small Business

Most entrepreneurs prefer working for someone else.

Correct AnswerverifiedShow Answer

Small Business Administration loans help firms finance their domestic operations. These funds, however, cannot be used to finance exports since the money is provided by U.S. taxpayers.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedA

Arturo is a partner in a firm that specializes in producing vitamins and health food products. While the business is considered small by U.S. standards, he is attempting to persuade his partner to expand internationally. Arturo would list which of the following as an advantage of going global?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The small business sector that has the best chance of significant growth is legal services.

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

Successful entrepreneurs are self-nurturing. This means they

Correct AnswerverifiedShow Answer

A small business management course at a community college may offer entrepreneurs an opportunity to

Correct AnswerverifiedA

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

Correct AnswerverifiedShow Answer

Small business owners often struggle in attracting qualified workers. Which of the following contributes to this problem?

Correct AnswerverifiedShow Answer

A National Business Incubator Association study indicates that over 85 percent of incubator graduates remain in business.

Correct AnswerverifiedShow Answer

Enterprise zones are

Correct AnswerverifiedShow Answer

Valerie wants to start her own small business. If her primary goal is to grow quickly and earn high profits, her best chances would be in the manufacturing sector.

Correct AnswerverifiedTrue

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Historically entrepreneurs in the U.S.

Correct AnswerverifiedShow Answer

Corporate downsizing reduces the opportunities for home-based businesses.

Correct AnswerverifiedShow Answer

The primary concern of micropreneurs is to balance the risk of starting your own business with the desire to build a powerful organization earning significant profits.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
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A

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A

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True

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