Question 1

Manuel is focusing his attention on finding full-time employment now that he has graduated. He has decided to narrow his job search to jobs with a major corporation and ignore the possibility of working for a small business. His job search strategy

Accepted Answer

A)   makes sense because managerial skills are best developed by working for big firms.
B)   is smart because major corporations represent the most important source of employment growth in the United States.
C)   indicates that Manuel's passion is to fulfill his dream of owning his own business.
D)   will likely limit his job prospects since most new jobs are with small businesses.E) A) and C)
F) A) and B)

Question 2

According to SBA guidelines, a manufacturing firm with 1,000 employees

Accepted Answer

A)   would be classified as a large firm in the industrial sector.
B)   may be classified as a small business depending upon the size of others in the same industry.
C)   is too small to achieve the efficiencies of large-scale production.
D)   is classified as an S corporation.E) A) and B)
F) C) and D)

Question 3

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 4

A(n)  ________ is a valuable source of information regarding techniques to reduce a firm's exposure to risk.

Accepted Answer

A)   insurance agent
B)   accountant
C)   liability assessor
D)   union business agentE) C) and D)
F) None of the above

Question 5

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) A) and C)

Question 6

It is important for an entrepreneur to be highly energetic.

Accepted Answer

A) True 
 B)False

Question 7

The Small Business Administration sponsors volunteers from industry, trade associations, and education who offer advice to small business owners. These volunteers are called:

Accepted Answer

A)   the Small Business Council of Volunteers (SBCV) .
B)   Partners in Service and Economic Progress (PSEP) .
C)   Small Business Counselors Incorporated (SBCI) .
D)   the Service Corps of Retired Executives (SCOR
E)  .E) All of the above
F) None of the above

Question 8

Mini-Case
Pepe Pieman believes that pizza is a much more versatile meal than most people realize. As the national marketing manager for Pizza Pals, he has watched how consumers ate up barbecue pizza, Hawaiian pizza, Mexican pizza, and other new and unique combinations. His superiors, however, met his suggestions for other unusual pizzas with a negative response. Even some of his teammates laughed at his ideas. Pepe's confidence in his ability to understand the market has led him to focus on planning a business of his own. Pepe realizes that he will take a risk when he leaves his job with Pizza Pals and sets off on a new endeavor: Pepe's Pizzazzeria. Pepe is excited about the potential of profitably catering to the unmet desires of pizza consumers.
-Pepe is positive he knows a lot about marketing. But he is not as confident in his skills within the legal or financial aspects of starting a new business. He wants to consult with a lawyer and accountant, but his budget is tight with all of the expenses involved in getting Pepe's Pizzazzeria up and running. Pepe should

Accepted Answer

A)   delay talking with a lawyer and accountant until the business has established a positive cash flow for at least one year.
B)   trust his basic instincts and try to put it together without the advice of lawyers and accountants.
C)   consult with a lawyer and accountant even though the budget is tight.
D)   immediately hire full-time lawyers and accountants for his staff.E) C) and D)
F) None of the above

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Most business opportunities offer entrepreneurs high levels of security and profits.

Accepted Answer

A) True 
 B)False

Question 11

If you are trying to prevent failure, it is a good idea to go into the business with good record-keeping techniques.

Accepted Answer

A) True 
 B)False

Question 12

Potential suppliers can be an excellent source of financing for a new business since lending money to a new customer may be very much in their own interest.

Accepted Answer

A) True 
 B)False

Question 13

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's accountant.E) All of the above
F) B) and D)

Question 14

When writing a business plan, prospective entrepreneurs should remember to omit details regarding their experience and education since investors are only interested in the proposed business.

Accepted Answer

A) True 
 B)False

Question 15

About 80% of U.S. workers find their first job in small business.

Accepted Answer

A) True 
 B)False

Question 16

The goal of an intrapreneur is to

Accepted Answer

A)   improve quality control in a corporation's production process.
B)   develop new products and generate new profits for the corporation.
C)   implement cost control policies for existing products.
D)   create smaller companies within larger companies.E) A) and B)
F) A) and C)

Question 17

To be considered part of a market, an individual must

Accepted Answer

A)   be a registered buyer.
B)   have made a purchase within the past 30 days.
C)   know the names and addresses of two or more sellers.
D)   have both a willingness to buy and the financial resources needed to buy.E) None of the above
F) A) and D)

Question 18

Lily, an upperclassman at Riverside College, hopes to start her own business after graduation. In an effort to learn as much as she can about small business management, she talked to four friends who each offered their advice. Which of these suggestions is likely to help her the most?

Accepted Answer

A)   The best way to learn about running a business is by getting hands-on experience. You should quit school and put your dream into action.
B)   Take courses related to small business management and then look for a job with a successful businessperson, preferably in your field of interest.
C)   Since every business is unique, don't worry about advice from others. Go to a bank, get a business loan, and live your dream.
D)   Starting and managing a small business requires little more than common sense. If your idea is unique, hard work will guarantee your success.E) A) and B)
F) A) and C)

Question 19

State and local governments often act as venture capitalists.

Accepted Answer

A) True 
 B)False

Question 20

Discuss the benefits exporting offers to small businesses. Given these benefits, why don't more small firms sell in international markets?

Accepted Answer

a. The world market is potentially a muc...

Exam 6: Entrepreneurship and Starting a Small Business

Lily, an upperclassman at Riverside College, hopes to start her own business after graduation. In an effort to learn as much as she can about small business management, she talked to four friends who each offered their advice. Which of these suggestions is likely to help her the most?

Correct Answer
verified

Potential suppliers can be an excellent source of financing for a new business since lending money to a new customer may be very much in their own interest.

Correct Answer
verified

To be considered part of a market, an individual must

Correct Answer
verified

Manuel is focusing his attention on finding full-time employment now that he has graduated. He has decided to narrow his job search to jobs with a major corporation and ignore the possibility of working for a small business. His job search strategy

Correct Answer
verified

A(n) ________ is a valuable source of information regarding techniques to reduce a firm's exposure to risk.

Correct Answer
verified

If you are trying to prevent failure, it is a good idea to go into the business with good record-keeping techniques.

Correct Answer
verified

The executive summary section of the business plan contains

Correct Answer
verified

When writing a business plan, prospective entrepreneurs should remember to omit details regarding their experience and education since investors are only interested in the proposed business.

Correct Answer
verified

Discuss the benefits exporting offers to small businesses. Given these benefits, why don't more small firms sell in international markets?

Correct Answer
verified
a. The world market is potentially a muc...
View Answer

Correct Answer
verified

About 80% of U.S. workers find their first job in small business.

Correct Answer
verified

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

Correct Answer
verified

State and local governments often act as venture capitalists.

Correct Answer
verified

It is important for an entrepreneur to be highly energetic.

Correct Answer
verified

The Small Business Administration sponsors volunteers from industry, trade associations, and education who offer advice to small business owners. These volunteers are called:

Correct Answer
verified

According to SBA guidelines, a manufacturing firm with 1,000 employees

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

Most business opportunities offer entrepreneurs high levels of security and profits.

Correct Answer
verified

The goal of an intrapreneur is to

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

Exam 6: Entrepreneurship and Starting a Small Business

Lily, an upperclassman at Riverside College, hopes to start her own business after graduation. In an effort to learn as much as she can about small business management, she talked to four friends who each offered their advice. Which of these suggestions is likely to help her the most?

Correct AnswerverifiedShow Answer

Potential suppliers can be an excellent source of financing for a new business since lending money to a new customer may be very much in their own interest.

Correct AnswerverifiedShow Answer

To be considered part of a market, an individual must

Correct AnswerverifiedShow Answer

Manuel is focusing his attention on finding full-time employment now that he has graduated. He has decided to narrow his job search to jobs with a major corporation and ignore the possibility of working for a small business. His job search strategy

Correct AnswerverifiedShow Answer

A(n) ________ is a valuable source of information regarding techniques to reduce a firm's exposure to risk.

Correct AnswerverifiedShow Answer

If you are trying to prevent failure, it is a good idea to go into the business with good record-keeping techniques.

Correct AnswerverifiedShow Answer

The executive summary section of the business plan contains

Correct AnswerverifiedShow Answer

When writing a business plan, prospective entrepreneurs should remember to omit details regarding their experience and education since investors are only interested in the proposed business.

Correct AnswerverifiedShow Answer

Discuss the benefits exporting offers to small businesses. Given these benefits, why don't more small firms sell in international markets?

Correct Answerverifieda. The world market is potentially a muc...View AnswerShow Answer

Correct AnswerverifiedShow Answer

About 80% of U.S. workers find their first job in small business.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

State and local governments often act as venture capitalists.

Correct AnswerverifiedShow Answer

It is important for an entrepreneur to be highly energetic.

Correct AnswerverifiedShow Answer

The Small Business Administration sponsors volunteers from industry, trade associations, and education who offer advice to small business owners. These volunteers are called:

Correct AnswerverifiedShow Answer

According to SBA guidelines, a manufacturing firm with 1,000 employees

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

Most business opportunities offer entrepreneurs high levels of security and profits.

Correct AnswerverifiedShow Answer

The goal of an intrapreneur is to

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

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
a. The world market is potentially a muc...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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