Question 1

Many more new entrepreneurs are turning to crowdfunding sites, like Kickstarter, to raise funds for their endeavors.

Accepted Answer

A) True 
 B)False

Question 2

As a result of recent downsizing at his firm, Dominic lost his job as an IT manager for a large telecommunications company. A true, self-confirmed computer nerd, Dominic knew that several of his past contacts often outsourced their computer problems. He decided it was a good time to test the waters and see if he could secure enough computer clients to be in business for himself. His success demonstrated that

Accepted Answer

A)   starting your own business can quickly provide security and profits.
B)   people always tend to hire people they know from past associations.
C)   the service sector is not an area of significant growth.
D)   successful big businesses often create profitable opportunities for small businesses.E) B) and D)
F) B) and C)

Question 3

One advantage enjoyed by home-based businesses is the relative ease in attracting new customers.

Accepted Answer

A) True 
 B)False

Question 4

Business plans are necessarily a bit vague since these are prepared prior to the beginning of business operations.

Accepted Answer

A) True 
 B)False

Question 5

After retiring as a telecommunications executive, Bruce joined SCORE. As a SCORE counselor Bruce will

Accepted Answer

A)   provide venture capital funds for aspiring small businesspeople.
B)   visit high schools to advise students who are thinking about starting their own business.
C)   help in the research and development of new products for entrepreneurs to market.
D)   provide consulting services to small businesses for free.E) A) and D)
F) A) and C)

Question 6

Most entrepreneurs prefer working for someone else.

Accepted Answer

A) True 
 B)False

Question 7

As their firms grow and prosper, busy entrepreneurs take pleasure in delegating authority to others.

Accepted Answer

A) True 
 B)False

Question 8

Small Business Investment Companies (SBICs) are privately owned companies licensed by the Small Business Administration to lend money to small businesses.

Accepted Answer

A) True 
 B)False

Question 9

One way to get into business is to buy an existing company. The value of the business used to determine a fair purchase price is based on

Accepted Answer

A)   the prospects for business competition.
B)   the current owner's retirement plan.
C)   the amount of government contracts the company has.
D)   the value of what the business owns, what it earns, and what makes it unique.E) All of the above
F) B) and C)

Question 10

The business plan will include ________.

Accepted Answer

A)   an analysis of the competition
B)   names of banks the owner plans to visit
C)   import/export information
D)   names of employeesE) B) and C)
F) A) and B)

Question 11

Kate, a manager at a small manufacturing firm, has offered to help manage a local branch of the YMCA. Unfortunately, Kate will find that the skills acquired managing a small business will not be useful in managing a nonprofit organization.

Accepted Answer

A) True 
 B)False

Question 12

Compared to employees of large businesses, small business employees are less satisfied with their work because they see their jobs as less challenging.

Accepted Answer

A) True 
 B)False

Question 13

The Small Business Administration's microloan program offers small businesses very small loans.

Accepted Answer

A) True 
 B)False

Question 14

The position of our government is to restrict foreign entrepreneurs from operating within the U.S.

Accepted Answer

A) True 
 B)False

Question 15

Skylar 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 start-up web-based firms.
C)   invests in nonprofits that plan to change their status when they double in size.
D)   comes to the rescue of firms who default on their bank loans.E) None of the above
F) A) and C)

Question 16

You can negotiate a win-win situation by offering to manage an established small business. You win from the experience; the owner wins with free time.

Accepted Answer

A) True 
 B)False

Question 17

A market consists of potential buyers of a good or service. However, for a market to exist

Accepted Answer

A)   the business requires wholesalers and retailers.
B)   one firm must dominate in sales and product development.
C)   people must have unsatisfied wants and needs as well as a willingness and ability to buy.
D)   the product must be laboratory tested and approved by the Food and Drug Administration (FD
A)  .E) A) and B)
F) A) and C)

Question 18

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) B) and D)
F) A) and D)

Question 19

Potential entrepreneurs would be well advised to surround themselves with people who are smarter than they are.

Accepted Answer

A) True 
 B)False

Question 20

Bankers and potential investors are likely to read ________ first.

Accepted Answer

A)   the executive summary
B)   the marketing plan
C)   the qualifications of the management team
D)   the analysis of the competitionE) A) and B)
F) A) and C)

Exam 6: Entrepreneurship and Starting a Small Business

Compared to employees of large businesses, small business employees are less satisfied with their work because they see their jobs as less challenging.

Correct Answer
verified

Potential entrepreneurs would be well advised to surround themselves with people who are smarter than they are.

Correct Answer
verified

Skylar is an angel investor. This means that he

Correct Answer
verified

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

Correct Answer
verified

You can negotiate a win-win situation by offering to manage an established small business. You win from the experience; the owner wins with free time.

Correct Answer
verified

Kate, a manager at a small manufacturing firm, has offered to help manage a local branch of the YMCA. Unfortunately, Kate will find that the skills acquired managing a small business will not be useful in managing a nonprofit organization.

Correct Answer
verified

Bankers and potential investors are likely to read ________ first.

Correct Answer
verified

One advantage enjoyed by home-based businesses is the relative ease in attracting new customers.

Correct Answer
verified

A market consists of potential buyers of a good or service. However, for a market to exist

Correct Answer
verified

Small Business Investment Companies (SBICs) are privately owned companies licensed by the Small Business Administration to lend money to small businesses.

Correct Answer
verified

The Small Business Administration's microloan program offers small businesses very small loans.

Correct Answer
verified

As their firms grow and prosper, busy entrepreneurs take pleasure in delegating authority to others.

Correct Answer
verified

The business plan will include ________.

Correct Answer
verified

Business plans are necessarily a bit vague since these are prepared prior to the beginning of business operations.

Correct Answer
verified

The position of our government is to restrict foreign entrepreneurs from operating within the U.S.

Correct Answer
verified

Many more new entrepreneurs are turning to crowdfunding sites, like Kickstarter, to raise funds for their endeavors.

Correct Answer
verified

One way to get into business is to buy an existing company. The value of the business used to determine a fair purchase price is based on

Correct Answer
verified

Correct Answer
verified

Most entrepreneurs prefer working for someone else.

Correct Answer
verified

After retiring as a telecommunications executive, Bruce joined SCORE. As a SCORE counselor Bruce will

Correct Answer
verified

Exam 6: Entrepreneurship and Starting a Small Business

Compared to employees of large businesses, small business employees are less satisfied with their work because they see their jobs as less challenging.

Correct AnswerverifiedShow Answer

Potential entrepreneurs would be well advised to surround themselves with people who are smarter than they are.

Correct AnswerverifiedShow Answer

Skylar is an angel investor. This means that he

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

You can negotiate a win-win situation by offering to manage an established small business. You win from the experience; the owner wins with free time.

Correct AnswerverifiedShow Answer

Kate, a manager at a small manufacturing firm, has offered to help manage a local branch of the YMCA. Unfortunately, Kate will find that the skills acquired managing a small business will not be useful in managing a nonprofit organization.

Correct AnswerverifiedShow Answer

Bankers and potential investors are likely to read ________ first.

Correct AnswerverifiedShow Answer

One advantage enjoyed by home-based businesses is the relative ease in attracting new customers.

Correct AnswerverifiedShow Answer

A market consists of potential buyers of a good or service. However, for a market to exist

Correct AnswerverifiedShow Answer

Small Business Investment Companies (SBICs) are privately owned companies licensed by the Small Business Administration to lend money to small businesses.

Correct AnswerverifiedShow Answer

The Small Business Administration's microloan program offers small businesses very small loans.

Correct AnswerverifiedShow Answer

As their firms grow and prosper, busy entrepreneurs take pleasure in delegating authority to others.

Correct AnswerverifiedShow Answer

The business plan will include ________.

Correct AnswerverifiedShow Answer

Business plans are necessarily a bit vague since these are prepared prior to the beginning of business operations.

Correct AnswerverifiedShow Answer

The position of our government is to restrict foreign entrepreneurs from operating within the U.S.

Correct AnswerverifiedShow Answer

Many more new entrepreneurs are turning to crowdfunding sites, like Kickstarter, to raise funds for their endeavors.

Correct AnswerverifiedShow Answer

One way to get into business is to buy an existing company. The value of the business used to determine a fair purchase price is based on

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Most entrepreneurs prefer working for someone else.

Correct AnswerverifiedShow Answer

After retiring as a telecommunications executive, Bruce joined SCORE. As a SCORE counselor Bruce will

Correct AnswerverifiedShow Answer

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