Question 1

Ben got a phone call from one of his regular customers asking if he had time to repair a couple of broken sprinkler heads on the customer's underground sprinkling system.Although it was already 6:00 p.m.and Ben had put in a full day of work,he turned his car around and headed for the customer's house.As a small business owner,Ben demonstrates:

Accepted Answer

A)  his need for additional cash flow.
B)  his ability to easily adapt and respond to his customer's needs.
C)  the fact that it is difficult to find employees willing to go the extra mile for a small business because benefits are non-existent.
D)  that considering the fact that sprinkler heads are constantly breaking and need repair,his service is overpriced.E) B) and D)
F) None of the above

Question 2

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 3

Given Peppy's willingness to accept the risks of opening and running Peppy's Pizzazzeria,he is clearly an example of an) :

Accepted Answer

A)  arbitrageur.
B)  intrapreneur.
C)  gambler.
D)  entrepreneur.E) A) and D)
F) All of the above

Question 4

Successful entrepreneurial teams:

Accepted Answer

A)  quickly organize themselves like large corporations.
B)  assign only one person to new product innovation.
C)  bring a variety of talent to the business venture.
D)  outsource most of the details of innovation.E) A) and B)
F) A) and C)

Question 5

Jacques has eliminated the risk of entrepreneurship by preparing a detailed business plan.

Accepted Answer

A) True 
 B)False

Question 6

As a former classmate of Peppy's at the nearby university,you remind him what you both learned in your small business management class several years ago:

Accepted Answer

A)  restaurants are easy to start-up,but difficult to keep going.
B)  restaurants are probably the most difficult type of business to start-up,due to the labor intensive aspects of the business.
C)  experts believe that restaurants have a high profit potential,due the fact that there is not much direct competition.
D)  restaurants are easy to start-up and have great profit potential.E) None of the above
F) A) and B)

Question 7

Recent evidence suggests that the small business failure rate is significantly much higher than previously reported.

Accepted Answer

A) True 
 B)False

Question 8

After several years of working as a regional manager for a nationally known nonprofit,Janelle landed a management position with an innovative small business.If she accepts the job offer,she is likely to find that:

Accepted Answer

A)  due to the significant differences in large and small firms,her previous experience will be of little value in her new position.
B)  the principles of management are much the same at large and small firms.
C)  nonprofit organizations are motivated by their desire to help people and so financial management is of little concern.
D)  planning is more important to a nonprofit organization and less important to a small business so she will need to adjust the time she spends on the planning function.E) A) and C)
F) B) and C)

Question 9

Kenya recently quit a job with a large corporation to start her own business.While she realizes that her decision comes with risk,she is excited for the chance to be independent and by the challenges of running her own firm.Kenya is an example of an) :

Accepted Answer

A)  intrapreneur.
B)  entrepreneur.
C)  venture capitalist.
D)  raconteur.E) A) and C)
F) None of the above

Question 10

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 11

Which of the following is not a reason stated for small business failure?

Accepted Answer

A)  Managerial incompetence
B)  Inadequate financial planning
C)  Buying too little on credit and not being lenient enough with your credit paying customers
D)  Borrowing money without a plan of how and when you will repay the debtE) A) and D)
F) None of the above

Question 12

When starting a small business,it's important to remember:

Accepted Answer

A)  an affinity for taking large amounts of risk is the critical factor in achieving small business success.
B)  doing things differently from previous entrepreneurs is the real key to success.
C)  learning from others and gaining relevant business experience improves the odds for success.
D)  to avoid burnout,limit the number of hours you work each week as you adapt to the rigors of self-employment.E) B) and C)
F) All of the above

Question 13

After graduation,Manny focused his attention on finding full time employment.He has decided to narrow his job search to jobs with a major corporation.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 Manny'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) B) and D)
F) None of the above

Question 14

Most entrepreneurs prefer working for someone else.

Accepted Answer

A) True 
 B)False

Question 15

One way to control the legal costs associated with operating a small business is to purchase a prepaid legal plan.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following U.S.issues does entrepreneurship most directly affect?

Accepted Answer

A)  The political process
B)  The ability to create jobs for others
C)  Contributions of money to organizations that help people in need
D)  The ability to influence national macroeconomics policesE) C) and D)
F) B) and C)

Question 17

Peppy remains confident and enthusiastic even though his colleagues have poked fun at his ideas.This shows that Peppy is:

Accepted Answer

A)  self-disciplined.
B)  self-nurturing.
C)  self-generating.
D)  auto-inspirational.E) A) and B)
F) A) and C)

Question 18

Small businesses create about __________ percent of the new jobs in the United States.

Accepted Answer

A)  5-10
B)  25-35
C)  60-80
D)  100E) B) and C)
F) None of the above

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 6: Entrepreneurship and Starting a Small Business

Given Peppy's willingness to accept the risks of opening and running Peppy's Pizzazzeria,he is clearly an example of an) :

Correct Answer
verified

When starting a small business,it's important to remember:

Correct Answer
verified

Which of the following U.S.issues does entrepreneurship most directly affect?

Correct Answer
verified

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

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

Small businesses create about __________ percent of the new jobs in the United States.

Correct Answer
verified

Jacques has eliminated the risk of entrepreneurship by preparing a detailed business plan.

Correct Answer
verified

After graduation,Manny focused his attention on finding full time employment.He has decided to narrow his job search to jobs with a major corporation.His job search strategy:

Correct Answer
verified

Successful entrepreneurial teams:

Correct Answer
verified

Most entrepreneurs prefer working for someone else.

Correct Answer
verified

After several years of working as a regional manager for a nationally known nonprofit,Janelle landed a management position with an innovative small business.If she accepts the job offer,she is likely to find that:

Correct Answer
verified

Correct Answer
verified

Kenya recently quit a job with a large corporation to start her own business.While she realizes that her decision comes with risk,she is excited for the chance to be independent and by the challenges of running her own firm.Kenya is an example of an) :

Correct Answer
verified

Which of the following is not a reason stated for small business failure?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

As a former classmate of Peppy's at the nearby university,you remind him what you both learned in your small business management class several years ago:

Correct Answer
verified

Peppy remains confident and enthusiastic even though his colleagues have poked fun at his ideas.This shows that Peppy is:

Correct Answer
verified

Recent evidence suggests that the small business failure rate is significantly much higher than previously reported.

Correct Answer
verified

One way to control the legal costs associated with operating a small business is to purchase a prepaid legal plan.

Correct Answer
verified

Exam 6: Entrepreneurship and Starting a Small Business

Given Peppy's willingness to accept the risks of opening and running Peppy's Pizzazzeria,he is clearly an example of an) :

Correct AnswerverifiedShow Answer

When starting a small business,it's important to remember:

Correct AnswerverifiedShow Answer

Which of the following U.S.issues does entrepreneurship most directly affect?

Correct AnswerverifiedShow Answer

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

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

Small businesses create about __________ percent of the new jobs in the United States.

Correct AnswerverifiedShow Answer

Jacques has eliminated the risk of entrepreneurship by preparing a detailed business plan.

Correct AnswerverifiedShow Answer

After graduation,Manny focused his attention on finding full time employment.He has decided to narrow his job search to jobs with a major corporation.His job search strategy:

Correct AnswerverifiedShow Answer

Successful entrepreneurial teams:

Correct AnswerverifiedShow Answer

Most entrepreneurs prefer working for someone else.

Correct AnswerverifiedShow Answer

After several years of working as a regional manager for a nationally known nonprofit,Janelle landed a management position with an innovative small business.If she accepts the job offer,she is likely to find that:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Kenya recently quit a job with a large corporation to start her own business.While she realizes that her decision comes with risk,she is excited for the chance to be independent and by the challenges of running her own firm.Kenya is an example of an) :

Correct AnswerverifiedShow Answer

Which of the following is not a reason stated for small business failure?

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

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

Correct AnswerverifiedShow Answer

As a former classmate of Peppy's at the nearby university,you remind him what you both learned in your small business management class several years ago:

Correct AnswerverifiedShow Answer

Peppy remains confident and enthusiastic even though his colleagues have poked fun at his ideas.This shows that Peppy is:

Correct AnswerverifiedShow Answer

Recent evidence suggests that the small business failure rate is significantly much higher than previously reported.

Correct AnswerverifiedShow Answer

One way to control the legal costs associated with operating a small business is to purchase a prepaid legal plan.

Correct AnswerverifiedShow Answer

Correct Answer
verified

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