Question 1

Because of their superior financial resources and specialized staffs, big corporations can almost always outperform small businesses.

Accepted Answer

A) True 
 B)False

Question 2

Small businesses can provide more personalized service than a large corporation to overseas customers.

Accepted Answer

A) True 
 B)False

Question 3

A detailed written statement that describes the nature of the business, the target market, the firm's competitive advantages, as well as the owner's resources and qualifications is a:

Accepted Answer

A)  business plan.
B)  entrepreneurial mission statement.
C)  profit and loss statement.
D)  professional action plan.E) B) and C)
F) All of the above

Question 4

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

Question 5

An effective business plan analyzes the competition and identifies the resources required to profitably serve a target market.

Accepted Answer

A) True 
 B)False

Question 6

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 C)
F) B) and D)

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

An entrepreneurial team is a group of experienced managers who share the same skills and abilities.

Accepted Answer

A) True 
 B)False

Question 9

The most common small business failures occur in businesses that are the easiest to start.

Accepted Answer

A) True 
 B)False

Question 10

Most entrepreneurs and small business owners agree that a small business' marketing effort should include:

Accepted Answer

A)  a web presence
B)  a list of competitor products
C)  a pro forma income statement
D)  a complete product lifecycleE) B) and C)
F) A) and B)

Question 11

While Jing wants to start a small business, she has not yet uncovered an opportunity that would offer her security and the likelihood of high profits. Jing will likely find that one must risk more in order to attain high profits.

Accepted Answer

A) True 
 B)False

Question 12

Anthony is an employee of a textbook publisher. However, his desire is to establish a home-based business providing his services to a variety of publishers. Anthony's primary motivation is to escape the 9 to 5 world of corporate publishing and to enjoy the opportunity of working for himself. Anthony is an example of a micropreneur.

Accepted Answer

A) True 
 B)False

Question 13

Dr. Smiley White just graduated from dental school. He is hoping to acquire the necessary funding to start his own dental practice. One advantage of this type of business is:

Accepted Answer

A)  above average opportunity to borrow funds at a high interest rate
B)  nearly unlimited growth potential
C)  the service is individualized and not easily mass-produced
D)  very low startup costsE) B) and D)
F) All of the above

Question 14

Bankers and investors require entrepreneurs to present a well-conceived business plan.

Accepted Answer

A) True 
 B)False

Question 15

Venture capitalists provide funds for startup businesses in exchange for part ownership in the new firm.

Accepted Answer

A) True 
 B)False

Question 16

In order to improve his chances of small business success, Demitri prepared a business plan. Most often, a positive outcome of this exercise is:

Accepted Answer

A)  the plan will meet federal reporting requirements of the Internal Revenue Service.
B)  the plan ensures financing will be available from the Small Business Administration.
C)  the plan enables Demitri to think carefully about all aspects of his business idea.
D)  the plan will protect Demitri from failure.E) A) and B)
F) All of the above

Question 17

Chris is an angel investor. This means that he:

Accepted Answer

A)  invests his money in new businesses with potential for growth, hoping for a good return on his investment if they go public.
B)  creates business incubators for startup Web-based firms.
C)  invests in non-profits that plan to change their status when they double in size.
D)  he comes to the rescue of firms who default on their bank loans.E) A) and B)
F) B) and C)

Question 18

Which of the following suggestions would an experienced business owner offer to help someone who is thinking about starting a business venture?

Accepted Answer

A)  Avoid the temptation of buying an existing firm. Build your own reputation and make your own mistakes.
B)  Gain experience by working for a successful businessperson.
C)  Postpone consulting with an accountant or lawyer until you can afford their services.
D)  Jump in quickly, before the market conditions change and opportunities are lost.E) All of the above
F) None of the above

Question 19

State governments create new startup business organizations called enterprise zones that are later sold to private investors.

Accepted Answer

A) True 
 B)False

Question 20

Management includes attention toward financing the business, hiring employees, marketing, and record keeping.

Accepted Answer

A) True 
 B)False

Exam 6: Entrepreneurship and Starting a Small Business

Bankers and investors require entrepreneurs to present a well-conceived business plan.

Correct Answer
verified

Small businesses can provide more personalized service than a large corporation to overseas customers.

Correct Answer
verified

While Jing wants to start a small business, she has not yet uncovered an opportunity that would offer her security and the likelihood of high profits. Jing will likely find that one must risk more in order to attain high profits.

Correct Answer
verified

The executive summary section of the business plan contains:

Correct Answer
verified

Correct Answer
verified

State governments create new startup business organizations called enterprise zones that are later sold to private investors.

Correct Answer
verified

Dr. Smiley White just graduated from dental school. He is hoping to acquire the necessary funding to start his own dental practice. One advantage of this type of business is:

Correct Answer
verified

An effective business plan analyzes the competition and identifies the resources required to profitably serve a target market.

Correct Answer
verified

Most entrepreneurs and small business owners agree that a small business' marketing effort should include:

Correct Answer
verified

The most common small business failures occur in businesses that are the easiest to start.

Correct Answer
verified

Chris is an angel investor. This means that he:

Correct Answer
verified

Which of the following suggestions would an experienced business owner offer to help someone who is thinking about starting a business venture?

Correct Answer
verified

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

Correct Answer
verified

Management includes attention toward financing the business, hiring employees, marketing, and record keeping.

Correct Answer
verified

Because of their superior financial resources and specialized staffs, big corporations can almost always outperform small businesses.

Correct Answer
verified

Venture capitalists provide funds for startup businesses in exchange for part ownership in the new firm.

Correct Answer
verified

An entrepreneurial team is a group of experienced managers who share the same skills and abilities.

Correct Answer
verified

In order to improve his chances of small business success, Demitri prepared a business plan. Most often, a positive outcome of this exercise is:

Correct Answer
verified

A detailed written statement that describes the nature of the business, the target market, the firm's competitive advantages, as well as the owner's resources and qualifications is a:

Correct Answer
verified

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

Correct Answer
verified

Exam 6: Entrepreneurship and Starting a Small Business

Bankers and investors require entrepreneurs to present a well-conceived business plan.

Correct AnswerverifiedShow Answer

Small businesses can provide more personalized service than a large corporation to overseas customers.

Correct AnswerverifiedShow Answer

While Jing wants to start a small business, she has not yet uncovered an opportunity that would offer her security and the likelihood of high profits. Jing will likely find that one must risk more in order to attain high profits.

Correct AnswerverifiedShow Answer

The executive summary section of the business plan contains:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

State governments create new startup business organizations called enterprise zones that are later sold to private investors.

Correct AnswerverifiedShow Answer

Dr. Smiley White just graduated from dental school. He is hoping to acquire the necessary funding to start his own dental practice. One advantage of this type of business is:

Correct AnswerverifiedShow Answer

An effective business plan analyzes the competition and identifies the resources required to profitably serve a target market.

Correct AnswerverifiedShow Answer

Most entrepreneurs and small business owners agree that a small business' marketing effort should include:

Correct AnswerverifiedShow Answer

The most common small business failures occur in businesses that are the easiest to start.

Correct AnswerverifiedShow Answer

Chris is an angel investor. This means that he:

Correct AnswerverifiedShow Answer

Which of the following suggestions would an experienced business owner offer to help someone who is thinking about starting a business venture?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Management includes attention toward financing the business, hiring employees, marketing, and record keeping.

Correct AnswerverifiedShow Answer

Because of their superior financial resources and specialized staffs, big corporations can almost always outperform small businesses.

Correct AnswerverifiedShow Answer

Venture capitalists provide funds for startup businesses in exchange for part ownership in the new firm.

Correct AnswerverifiedShow Answer

An entrepreneurial team is a group of experienced managers who share the same skills and abilities.

Correct AnswerverifiedShow Answer

In order to improve his chances of small business success, Demitri prepared a business plan. Most often, a positive outcome of this exercise is:

Correct AnswerverifiedShow Answer

A detailed written statement that describes the nature of the business, the target market, the firm's competitive advantages, as well as the owner's resources and qualifications is a:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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Correct Answer
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