Question 1

Your textbook uses the term small business to refer to an owner-managed business that employs not more than

Accepted Answer

A)   100 people.
B)   500 people.
C)   15,000 people.
D)   25 people.
E)   1,000 people.F) A) and C)
G) None of the above

Question 2

What is not a decision that Jack and Bruce have to make before starting their business?

Accepted Answer

A)   What organizational form to use
B)   How to market their product
C)   How to determine what to sell
D)   The general idea for their business
E)   The target marketF) A) and B)
G) B) and D)

Question 3

Retailers purchase goods and resell them to consumers and some distributors.

Accepted Answer

A) True 
 B)False

Question 4

It is difficult to define small business because smallness is relative.

Accepted Answer

A) True 
 B)False

Question 5

Worries about new equipment,expanding inventory,rent increases,competition,changing market conditions,and the like may contribute to

Accepted Answer

A)   overoptimism.
B)   a high stress level.
C)   decreasing costs.
D)   undercapitalization.
E)   a low stress level.F) A) and D)
G) B) and C)

Question 6

Echo boomers are sometimes called millennials or Generation Y and are an important market for small businesses.

Accepted Answer

A) True 
 B)False

Question 7

The most important source of funds for any new business is the employees.

Accepted Answer

A) True 
 B)False

Question 8

Evaluate the idea of a low-fat cookie and muffin retail store.

Accepted Answer

Students' answers will vary but most wil...

Question 9

One advantage that small businesses have over large businesses is that they

Accepted Answer

A)   are better able to focus on a few key customers.
B)   have well-defined goals and objectives.
C)   can arrange financial help easily because their capital needs are much smaller.
D)   know what they want to do and have the ability to do it.
E)   have specialized knowledge about the various areas of business concern.F) A) and C)
G) C) and D)

Question 10

What are intrapreneurs?

Accepted Answer

A)   They are introverted executives.
B)   They champion innovation from within larger organizations.
C)   They are another term for entrepreneurs.
D)   They are integral members of corporate boards of directors.
E)   They are executives who try to downsize their firms.F) All of the above
G) B) and D)

Question 11

One of the major reasons people want to own and operate their own business is to

Accepted Answer

A)   make a fortune.
B)   be their own boss.
C)   have lots of personal time.
D)   have an easy life.
E)   eliminate all pressure.F) A) and C)
G) A) and B)

Question 12

Technological advances have resulted in fewer opportunities for small businesses abroad.

Accepted Answer

A) True 
 B)False

Question 13

Entrepreneurship is the process of creating and managing a business to achieve desired objectives.

Accepted Answer

A) True 
 B)False

Question 14

Retailing,services,manufacturing,and high technology are attractive to entrepreneurs because these fields tend to be relatively easy to enter and require low initial financing.

Accepted Answer

A) True 
 B)False

Question 15

The ______ sector accounts for the majority of jobs in the United States.

Accepted Answer

A)   manufacturing
B)   retail
C)   export
D)   wholesale
E)   serviceF) A) and E)
G) A) and B)

Question 16

Many financial institutions decide whether to loan a small business money based on its

Accepted Answer

A)   general idea.
B)   business plan.
C)   owners.
D)   employees.
E)   goals.F) A) and C)
G) B) and E)

Question 17

Which of the following is not a common cause of small business failure?

Accepted Answer

A)   Poor business concept
B)   Managerial inexperience
C)   Entrepreneurial vision
D)   Inability to cope with growth
E)   UndercapitalizationF) B) and E)
G) B) and C)

Question 18

Relatively low start-up costs are an advantage of a small business.

Accepted Answer

A) True 
 B)False

Question 19

Small businesses cannot be operated from an individual's home.

Accepted Answer

A) True 
 B)False

Question 20

Why do small businesses have a high failure rate?

Accepted Answer

There are many reasons small businesses ...

Exam 5: Small Business, entrepreneurship, and Franchising

Retailing,services,manufacturing,and high technology are attractive to entrepreneurs because these fields tend to be relatively easy to enter and require low initial financing.

Correct AnswerverifiedShow Answer

One advantage that small businesses have over large businesses is that they

Correct AnswerverifiedShow Answer

Technological advances have resulted in fewer opportunities for small businesses abroad.

Correct AnswerverifiedShow Answer

What is not a decision that Jack and Bruce have to make before starting their business?

Correct AnswerverifiedShow Answer

What are intrapreneurs?

Correct AnswerverifiedShow Answer

Entrepreneurship is the process of creating and managing a business to achieve desired objectives.

Correct AnswerverifiedShow Answer

The most important source of funds for any new business is the employees.

Correct AnswerverifiedShow Answer

Retailers purchase goods and resell them to consumers and some distributors.

Correct AnswerverifiedShow Answer

Evaluate the idea of a low-fat cookie and muffin retail store.

Correct AnswerverifiedStudents' answers will vary but most wil...View AnswerShow Answer

Which of the following is not a common cause of small business failure?

Correct AnswerverifiedShow Answer

Why do small businesses have a high failure rate?

Correct AnswerverifiedThere are many reasons small businesses ...View AnswerShow Answer

Your textbook uses the term small business to refer to an owner-managed business that employs not more than

Correct AnswerverifiedShow Answer

It is difficult to define small business because smallness is relative.

Correct AnswerverifiedShow Answer

One of the major reasons people want to own and operate their own business is to

Correct AnswerverifiedShow Answer

Many financial institutions decide whether to loan a small business money based on its

Correct AnswerverifiedShow Answer

The ______ sector accounts for the majority of jobs in the United States.

Correct AnswerverifiedShow Answer

Relatively low start-up costs are an advantage of a small business.

Correct AnswerverifiedShow Answer

Small businesses cannot be operated from an individual's home.

Correct AnswerverifiedShow Answer

Worries about new equipment,expanding inventory,rent increases,competition,changing market conditions,and the like may contribute to

Correct AnswerverifiedShow Answer

Echo boomers are sometimes called millennials or Generation Y and are an important market for small businesses.

Correct AnswerverifiedShow Answer

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Students' answers will vary but most wil...
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There are many reasons small businesses ...
View Answer

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