Question 1

A good business plan will:

Accepted Answer

A)  focus on the big picture and omit the small details of operating the business.
B)  describe all aspects of the business,including product,the target market,the nature of the competition,any financial resources,and the owner's qualifications.
C)  be purposefully vague,since specifics can restrict creativity and flexibility.
D)  focus on the nature of the business and the target market,omitting personal information about the owner in order to avoid personality issues.E) None of the above
F) A) and B)

Question 2

One of the hurdles small businesses face when deciding to export is:

Accepted Answer

A)  financing is often difficult to find.
B)  overseas buyers prefer dealing with large corporations.
C)  smaller companies must wait in line after large companies to qualify for tariffs.
D)  American products are perceived as inferior.E) A) and D)
F) C) and D)

Question 3

Two key management functions that need particular attention when starting a business are:

Accepted Answer

A)  human relations and accounting
B)  planning and financing
C)  marketing and public relations
D)  staffing and controllingE) B) and D)
F) A) and C)

Question 4

Large multinational firms dominate the international market,leaving few opportunities for small businesses.

Accepted Answer

A) True 
 B)False

Question 5

Since creating a detailed business plan is almost impossible,entrepreneurs should focus on the other tasks needed to get their firm started.

Accepted Answer

A) True 
 B)False

Question 6

One of the challenges of running a home-based business is:

Accepted Answer

A)  an increase in business risk.
B)  managing the extra time on your hands.
C)  keeping work and family tasks separate.
D)  burdensome tax laws.E) B) and C)
F) B) and D)

Question 7

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 8

Entrepreneurial teams combine the creative marketing and production ideas of a group of experienced people.

Accepted Answer

A) True 
 B)False

Question 9

Small businesses have not significantly participated in web-based online sales.

Accepted Answer

A) True 
 B)False

Question 10

Small businesses account for over 50% of the U.S.'s gross domestic product GDP).

Accepted Answer

A) True 
 B)False

Question 11

Individuals desiring to learn about small business operations are advised to learn from other entrepreneurs.

Accepted Answer

A) True 
 B)False

Question 12

Your brother,a family dentist,has opened a new office in your hometown.As a business student you know that this type of business experiences low failure rates.

Accepted Answer

A) True 
 B)False

Question 13

Entrepreneurs are well advised to avoid starting businesses in the same market in which they were previously employed.

Accepted Answer

A) True 
 B)False

Question 14

The only real barrier preventing small businesses from exporting is insufficient knowledge of the opportunities available.

Accepted Answer

A) True 
 B)False

Question 15

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 16

Many small business owners report that they needed assistance with accounting when they first started businesses.

Accepted Answer

A) True 
 B)False

Question 17

Peppy has inquired about the possibility of obtaining a microloan from the SB A.This type of loan is awarded primarily on the basis of the:

Accepted Answer

A)  borrower's integrity and the soundness of the business ideA
B)  amount of collateral the borrower can pledge.
C)  borrower's credit history and record of previous business success.
D)  age of the borrower,since only senior citizens qualify.E) A) and C)
F) None of the above

Question 18

Small businesses lack the resources to compete directly with big businesses.

Accepted Answer

A) True 
 B)False

Question 19

People who are 16 to 34 years old are not attracted to starting their own business.

Accepted Answer

A) True 
 B)False

Question 20

Large organizations encourage intrapreneurship as a strategy to improve their profitability through new products.

Accepted Answer

A) True 
 B)False

Exam 6: Entrepreneurship and Starting a Small Business

Large multinational firms dominate the international market,leaving few opportunities for small businesses.

Correct AnswerverifiedShow Answer

Small businesses have not significantly participated in web-based online sales.

Correct AnswerverifiedShow Answer

Peppy has inquired about the possibility of obtaining a microloan from the SB A.This type of loan is awarded primarily on the basis of the:

Correct AnswerverifiedShow Answer

Small businesses account for over 50% of the U.S.'s gross domestic product GDP).

Correct AnswerverifiedShow Answer

The only real barrier preventing small businesses from exporting is insufficient knowledge of the opportunities available.

Correct AnswerverifiedShow Answer

People who are 16 to 34 years old are not attracted to starting their own business.

Correct AnswerverifiedShow Answer

One of the hurdles small businesses face when deciding to export 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

Entrepreneurial teams combine the creative marketing and production ideas of a group of experienced people.

Correct AnswerverifiedShow Answer

One of the challenges of running a home-based business is:

Correct AnswerverifiedShow Answer

Two key management functions that need particular attention when starting a business are:

Correct AnswerverifiedShow Answer

Many small business owners report that they needed assistance with accounting when they first started businesses.

Correct AnswerverifiedShow Answer

Large organizations encourage intrapreneurship as a strategy to improve their profitability through new products.

Correct AnswerverifiedShow Answer

Small businesses lack the resources to compete directly with big businesses.

Correct AnswerverifiedShow Answer

Since creating a detailed business plan is almost impossible,entrepreneurs should focus on the other tasks needed to get their firm started.

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

A good business plan will:

Correct AnswerverifiedShow Answer

Individuals desiring to learn about small business operations are advised to learn from other entrepreneurs.

Correct AnswerverifiedShow Answer

Your brother,a family dentist,has opened a new office in your hometown.As a business student you know that this type of business experiences low failure rates.

Correct AnswerverifiedShow Answer

Entrepreneurs are well advised to avoid starting businesses in the same market in which they were previously employed.

Correct AnswerverifiedShow Answer

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