Question 1

The Making Ethical Decisions box,"Going Down with the Ship" addresses a dilemma worthy of consideration.It describes:

Accepted Answer

A)  an unethical situation where the business owner's need for capital causes him/her to delay all payments to suppliers for 120 days,forcing several of his close business relationships,out-of-business.
B)  the slow death of a business and how important it is to delay payments,sell-off assets and do everything possible to save a failing business except dismissing employees who need their jobs for survival.
C)  ethical decisions that need to be considered when employees leave a faltering business to start their own,eventually competing against their previous employer.
D)  the unethical and disloyal decision to leave your family business and start your own,taking with you all the family business's trade secrets.E) None of the above
F) B) and C)

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Small businesses:

Accepted Answer

A)  deal with similar management issues that large companies face.
B)  deal with very different management issues due to the very different management challenges experienced by small businesses.
C)  do not seek government funding due to the fact that the federal government has made it very clear that it must support large operations before small operations.
D)  concern themselves with state-of-the-art information and accounting technology but not employee relations due to their challenge to financially support employee benefits programs.E) None of the above
F) A) and C)

Question 4

As opposed to venture capitalists,angel investors prefer to target their investments in new firms requiring large sums of money.

Accepted Answer

A) True 
 B)False

Question 5

Small businesses create 60 - 80% of the new jobs in the United States each year.

Accepted Answer

A) True 
 B)False

Question 6

A business's size is measured:

Accepted Answer

A)  in relation to the number of competitors in its industry.
B)  in relation to other firms in its industry.
C)  in relation to the number of dominant competitors in its sector.
D)  as small,if it participates in the services sector.E) A) and C)
F) B) and C)

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Commercial loan officers serve as a resource for small business owners for information regarding risk management.

Accepted Answer

A) True 
 B)False

Question 9

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) All of the above
F) None of the above

Question 10

For prospective entrepreneurs,enrolling in an introduction to business or small business management course offered through their community college:

Accepted Answer

A)  is likely to be wasted time since college courses tend to be too theoretical.
B)  can be helpful by offering them an opportunity to meet experienced small business owners.
C)  serves as supplementary information,only after starting their business venture.
D)  seldom provides you with information to help make small business decisions.E) B) and C)
F) A) and B)

Question 11

The entrepreneur's integrity is not relevant to bankers when determining the credit worthiness of a business loan.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Which of the following sources of investment is the least likely type available to entrepreneurs?

Accepted Answer

A)  Angel investors
B)  Small Business Administration loans
C)  Venture capitalists
D)  Family and friendsE) A) and D)
F) A) and C)

Question 14

Which of the following statements accurately depicts an advantage that small business has over big business?

Accepted Answer

A)  If the small business owner can project his business as being big,if not very similar to big businesses that sell in the same industry,then he will realize a significant advantage.
B)  The size of the business small being better in this case) is an important consideration in the management of legal,payroll,and tax concerns.
C)  A small business can maneuver and change quicker than most large businesses can.It can react to market conditions and customer concerns much faster.
D)  The slower pace of small businesses translates into better quality for its customers.E) None of the above
F) A) and B)

Question 15

Jake wants to sell his workout DVDs in European,Asian,and Latin American countries._______________ will help him reach vendors abroad,without the expense of traveling to meet them face-to-face.

Accepted Answer

A)  A web site and other technological advances
B)  Partnering with a large U.S.recording studio
C)  The SBA Small Business Administration) 
D)  An incubator facilityE) B) and C)
F) A) and D)

Question 16

Erin developed a new type of exercise equipment she calls the Tush N' Tone.After unsuccessfully searching for potential investors,she arranged a personal loan and borrowed additional money from her parents.Her willingness to continue believing in her idea and remain enthusiastic shows that Erin 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) A) and D)
F) A) and B)

Question 17

Juanita wants to start a small business.If her primary goal is fast growth and high profits,her best chances would be in the manufacturing sector.

Accepted Answer

A) True 
 B)False

Question 18

Studies show that seniority is the most important criteria when selecting employees for promotion to management positions.

Accepted Answer

A) True 
 B)False

Question 19

What is an entrepreneurial team? What benefits does a team offer compared to an individual entrepreneur?

Accepted Answer

a.Entrepreneurial teams bring experience...

Question 20

One of the best places for young entrepreneurs to start shopping for a SBA loan is a:

Accepted Answer

A)  Small Business Development Center.
B)  financial institution specializing in business loans.
C)  college or university financial aid office.
D)  the Internet webpage: of the Venture Capitalists Association.E) A) and B)
F) A) and C)

Exam 6: Entrepreneurship and Starting a Small Business

Small businesses create 60 - 80% of the new jobs in the United States each year.

Correct AnswerverifiedShow Answer

The Making Ethical Decisions box,"Going Down with the Ship" addresses a dilemma worthy of consideration.It describes:

Correct AnswerverifiedShow Answer

The entrepreneur's integrity is not relevant to bankers when determining the credit worthiness of a business loan.

Correct AnswerverifiedShow Answer

As opposed to venture capitalists,angel investors prefer to target their investments in new firms requiring large sums of money.

Correct AnswerverifiedShow Answer

Commercial loan officers serve as a resource for small business owners for information regarding risk management.

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

Erin developed a new type of exercise equipment she calls the Tush N' Tone.After unsuccessfully searching for potential investors,she arranged a personal loan and borrowed additional money from her parents.Her willingness to continue believing in her idea and remain enthusiastic shows that Erin is:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following sources of investment is the least likely type available to entrepreneurs?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

For prospective entrepreneurs,enrolling in an introduction to business or small business management course offered through their community college:

Correct AnswerverifiedShow Answer

One of the best places for young entrepreneurs to start shopping for a SBA loan is a:

Correct AnswerverifiedShow Answer

Studies show that seniority is the most important criteria when selecting employees for promotion to management positions.

Correct AnswerverifiedShow Answer

Small businesses:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Jake wants to sell his workout DVDs in European,Asian,and Latin American countries._______________ will help him reach vendors abroad,without the expense of traveling to meet them face-to-face.

Correct AnswerverifiedShow Answer

A business's size is measured:

Correct AnswerverifiedShow Answer

What is an entrepreneurial team? What benefits does a team offer compared to an individual entrepreneur?

Correct Answerverifieda.Entrepreneurial teams bring experience...View AnswerShow Answer

Which of the following statements accurately depicts an advantage that small business has over big business?

Correct AnswerverifiedShow Answer

Juanita wants to start a small business.If her primary goal is fast growth and high profits,her best chances would be in the manufacturing sector.

Correct AnswerverifiedShow Answer

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a.Entrepreneurial teams bring experience...
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