Question 1

About ____ percent of businesses in Canada have fewer than 100 employees.

Accepted Answer

A)  10
B)  26
C)  40
D)  98E) B) and D)
F) None of the above

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Small businesses often have advantages in international markets.All of the following are advantages many small businesses can offer except:

Accepted Answer

A)  a greater expertise in managing the paperwork required to sell goods in international markets.
B)  the ability to ship goods more quickly.
C)  individualized customer service as opposed to impersonal corporate bureaucracies.
D)  the ability to provide a wide variety of suppliers.E) A) and D)
F) B) and C)

Question 4

When comparing various types of small businesses,the firms that are easiest to start tend to be those that:

Accepted Answer

A)  offer the greatest security.
B)  have the greatest prospect of long-term growth.
C)  have the highest failure rates.
D)  involve professional services,such as dentistry or veterinary medicine.E) A) and B)
F) B) and D)

Question 5

Traditionally small business statistics classified the retirement of an owner of a sole proprietorship as a business failure.

Accepted Answer

A) True 
 B)False

Question 6

Seeking the advice of established small business owners is:

Accepted Answer

A)  generally not a good idea since they desire to limit their competition.
B)  often valuable since you can from learn from their experiences.
C)  not recommended since federal privacy laws could be violated.
D)  only helpful if the person giving the advice has been successful.E) B) and C)
F) A) and D)

Question 7

________ are the primary concerns of someone starting a business.

Accepted Answer

A)  Human relations and accounting
B)  Financing and planning
C)  Marketing and public relations
D)  Staffing and controllingE) C) and D)
F) A) and C)

Question 8

Many entrepreneurs got the idea for their own business from their experience of working for others.

Accepted Answer

A) True 
 B)False

Question 9

A good business plan describes the nature of the proposed business,the target market,the competitive advantages,and the qualifications of the owner(s).

Accepted Answer

A) True 
 B)False

Question 10

A firm or individual providing financial capital to small businesses in exchange for an ownership stake in the company is called a:

Accepted Answer

A)  corporate raider.
B)  takeover specialist.
C)  financial capitalist.
D)  venture capitalist.E) None of the above
F) A) and D)

Question 11

The personal character of an entrepreneur is irrelevant to bankers when determining the credit worthiness of a business loan.

Accepted Answer

A) True 
 B)False

Question 12

Most entrepreneurs are more interested in personal achievement than in organizational power.

Accepted Answer

A) True 
 B)False

Question 13

Effective entrepreneurial teams require a blend of:

Accepted Answer

A)  creativity,marketing,and production skills.
B)  venture financing,tax benefits,and production economies.
C)  scientific abilities,capital investment,and marketing skills.
D)  risk tolerance,debt financing,and international experience.E) B) and D)
F) All of the above

Question 14

After working as a manager of a small business for several years,Connie has been offered a management position with a local charity.If she accepts the job offer,she is likely to find that:

Accepted Answer

A)  her previous experience will be of little value in her new position.
B)  the principles of management are much the same regardless of the type of organization.
C)  nonprofit organizations are motivated by their desire to help people and so financial management is of little concern.
D)  planning is less important to a nonprofit organization.E) None of the above
F) B) and C)

Question 15

An examination of the reasons given by people willing to accept the risks of entrepreneurship indicates that:

Accepted Answer

A)  the desire to earn a profit is the only reason most people have for becoming entrepreneurs.
B)  many people become entrepreneurs because they do not enjoy working for someone else.
C)  the strongest motivator is the desire to be famous and powerful.
D)  contrary to popular opinion,most entrepreneurs are not interested in personal achievement.E) A) and B)
F) None of the above

Question 16

Employees of small businesses often have greater job satisfaction than do employees of larger firms.One reason for this difference in job satisfaction is that employees of small businesses often:

Accepted Answer

A)  earn higher wages.
B)  receive more vacation time.
C)  get more respect from their bosses.
D)  have more job security and better fringe benefits.E) A) and C)
F) B) and C)

Question 17

The most important difference between entrepreneurs and micropreneurs is the focus placed by micropreneurs on balancing the demands of work and family.

Accepted Answer

A) True 
 B)False

Question 18

An excellent way to learn how to run a small business is to talk to entrepreneurs from diverse backgrounds.What kind of advice will they give you?

Accepted Answer

They will tell you that location is crit...

Question 19

All of the following are hurdles small businesses face when considering exporting except:

Accepted Answer

A)  financing is often difficult to find.
B)  overseas buyers prefer dealing with large corporate bureaucracies.
C)  there is great deal of required paperwork.
D)  cultural differences are not easily understood.E) A) and C)
F) B) and C)

Question 20

Which of the following would not be among the disadvantages of working for a small business?

Accepted Answer

A)  Pay.
B)  Benefits.
C)  Job satisfaction.
D)  Room for advancement.E) C) and D)
F) A) and B)

Exam 7: Entrepreneurship and Starting a Small Business

Effective entrepreneurial teams require a blend of:

Correct AnswerverifiedShow Answer

All of the following are hurdles small businesses face when considering exporting except:

Correct AnswerverifiedShow Answer

Seeking the advice of established small business owners is:

Correct AnswerverifiedShow Answer

About ____ percent of businesses in Canada have fewer than 100 employees.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Employees of small businesses often have greater job satisfaction than do employees of larger firms.One reason for this difference in job satisfaction is that employees of small businesses often:

Correct AnswerverifiedShow Answer

The personal character of an entrepreneur is irrelevant to bankers when determining the credit worthiness of a business loan.

Correct AnswerverifiedShow Answer

Most entrepreneurs are more interested in personal achievement than in organizational power.

Correct AnswerverifiedShow Answer

________ are the primary concerns of someone starting a business.

Correct AnswerverifiedShow Answer

When comparing various types of small businesses,the firms that are easiest to start tend to be those that:

Correct AnswerverifiedShow Answer

Many entrepreneurs got the idea for their own business from their experience of working for others.

Correct AnswerverifiedShow Answer

Which of the following would not be among the disadvantages of working for a small business?

Correct AnswerverifiedShow Answer

An examination of the reasons given by people willing to accept the risks of entrepreneurship indicates that:

Correct AnswerverifiedShow Answer

After working as a manager of a small business for several years,Connie has been offered a management position with a local charity.If she accepts the job offer,she is likely to find that:

Correct AnswerverifiedShow Answer

The most important difference between entrepreneurs and micropreneurs is the focus placed by micropreneurs on balancing the demands of work and family.

Correct AnswerverifiedShow Answer

Traditionally small business statistics classified the retirement of an owner of a sole proprietorship as a business failure.

Correct AnswerverifiedShow Answer

A firm or individual providing financial capital to small businesses in exchange for an ownership stake in the company is called a:

Correct AnswerverifiedShow Answer

A good business plan describes the nature of the proposed business,the target market,the competitive advantages,and the qualifications of the owner(s).

Correct AnswerverifiedShow Answer

Small businesses often have advantages in international markets.All of the following are advantages many small businesses can offer except:

Correct AnswerverifiedShow Answer

An excellent way to learn how to run a small business is to talk to entrepreneurs from diverse backgrounds.What kind of advice will they give you?

Correct AnswerverifiedThey will tell you that location is crit...View AnswerShow Answer

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They will tell you that location is crit...
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