Question 1

Small businesses often have advantages in international markets. Which best describes one those advantages?

Accepted Answer

A)   They have greater expertise in managing the paperwork required to sell goods in international markets.
B)   They have a better understanding of the cultural differences involved.
C)   They can provide individualized customer service as opposed to impersonal corporate bureaucracies.
D)   They have the ability to obtain financing through the International Monetary Fund.E) A) and B)
F) A) and C)

Question 2

Ryan was called by one of his regular customers asking if he had time to repair some broken sprinkler heads on that customer's underground sprinkling system. Although it was already 6:00 p.m. and he already put in a full day of work, he turned his car around and headed for the customer's house. As a small business owner, Ryan 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 nonexistent.
D)   that considering the fact that sprinkler heads are constantly breaking and need repair, his service is overpriced.E) A) and B)
F) A) and C)

Question 3

Amir hopes to start his own business someday. He should not talk to other small business owners about his plans because they might steal his ideas.

Accepted Answer

A) True 
 B)False

Question 4

Creative people working as entrepreneurs within a large organization are called intrapreneurs.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

When seeking financial backing from a venture capitalist, a small business owner should realize that the venture capitalist will

Accepted Answer

A)   charge an interest rate that is much higher than any other lender.
B)   not be interested in the management of the business.
C)   expect an ownership stake in the company in exchange for financial backing.
D)   demand that the money be repaid within 90 days or less.E) None of the above
F) B) and C)

Question 7

Which of the following employment statistics about small businesses is true?

Accepted Answer

A)   Small businesses create about 15% of all new jobs in the U.S.
B)   The number of women owning small businesses has remained constant.
C)   A great majority of American workers find their first jobs with a small business.
D)   Growth of minority-owned businesses in the U.S. is declining.E) A) and C)
F) A) and B)

Question 8

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) B) and C)
F) None of the above

Question 9

Many businesses started by entrepreneurs have grown into major corporations employing thousands of workers.

Accepted Answer

A) True 
 B)False

Question 10

To be successful, entrepreneurs are dependent on the support of others for encouragement.

Accepted Answer

A) True 
 B)False

Question 11

Most entrepreneurs get the ideas for their products and services from a flash of inspiration.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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) B) and C)
F) All of the above

Question 15

Mohamed's four employees have been with him since he opened Employment Experts, Inc., nearly a decade ago. As he anticipates staffing his new branch office, he decides none of these four long-time employees are ready to manage the office. Faced with this difficult situation, what should Mohamed do?

Accepted Answer

A)   He should appoint one of the three anyway to show that he appreciates their loyalty and commitment.
B)   He should run the new branch himself and appoint one of the three to take over the original office.
C)   He should hire a new qualified employee to manage the office since utilizing his unready employees could be detrimental to the business.
D)   He should appoint all three to the new branch and let them run it using a team approach.E) B) and C)
F) A) and B)

Question 16

Which of the following government agencies is responsible for encouraging the development of small business?

Accepted Answer

A)   Small Business Administration
B)   Federal Trade Commission
C)   Entrepreneur Assistance Center
D)   Federal Microloan AuthorityE) A) and D)
F) All of the above

Question 17

Venture capitalists provide funds for small businesses as part of their philanthropy programs.

Accepted Answer

A) True 
 B)False

Question 18

Due to the credit crunch that developed during the Great Recession, many small businesses found that ________ were more willing to lend money to smaller operations.

Accepted Answer

A)   large corporations
B)   credit card companies
C)   international banks
D)   smaller, community banksE) A) and D)
F) A) and C)

Question 19

While the first job for many people is working for a small business, larger corporations create most of the permanent new jobs.

Accepted Answer

A) True 
 B)False

Question 20

Grant received an e-mail stating that HE COULD EARN THOUSANDS!!!! just working a few hours from home. Most likely Grant's e-mail was a work-at-home scam.

Accepted Answer

A) True 
 B)False

Exam 6: Entrepreneurship and Starting a Small Business

Mohamed's four employees have been with him since he opened Employment Experts, Inc., nearly a decade ago. As he anticipates staffing his new branch office, he decides none of these four long-time employees are ready to manage the office. Faced with this difficult situation, what should Mohamed do?

Correct Answer
verified

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

Correct Answer
verified

Creative people working as entrepreneurs within a large organization are called intrapreneurs.

Correct Answer
verified

When seeking financial backing from a venture capitalist, a small business owner should realize that the venture capitalist will

Correct Answer
verified

Venture capitalists provide funds for small businesses as part of their philanthropy programs.

Correct Answer
verified

Many businesses started by entrepreneurs have grown into major corporations employing thousands of workers.

Correct Answer
verified

Due to the credit crunch that developed during the Great Recession, many small businesses found that ________ were more willing to lend money to smaller operations.

Correct Answer
verified

To be successful, entrepreneurs are dependent on the support of others for encouragement.

Correct Answer
verified

Most entrepreneurs get the ideas for their products and services from a flash of inspiration.

Correct Answer
verified

Which of the following employment statistics about small businesses is true?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Small businesses often have advantages in international markets. Which best describes one those advantages?

Correct Answer
verified

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

Correct Answer
verified

While the first job for many people is working for a small business, larger corporations create most of the permanent new jobs.

Correct Answer
verified

Grant received an e-mail stating that HE COULD EARN THOUSANDS!!!! just working a few hours from home. Most likely Grant's e-mail was a work-at-home scam.

Correct Answer
verified

Which of the following government agencies is responsible for encouraging the development of small business?

Correct Answer
verified

Correct Answer
verified

Amir hopes to start his own business someday. He should not talk to other small business owners about his plans because they might steal his ideas.

Correct Answer
verified

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

Correct Answer
verified

Exam 6: Entrepreneurship and Starting a Small Business

Mohamed's four employees have been with him since he opened Employment Experts, Inc., nearly a decade ago. As he anticipates staffing his new branch office, he decides none of these four long-time employees are ready to manage the office. Faced with this difficult situation, what should Mohamed do?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Creative people working as entrepreneurs within a large organization are called intrapreneurs.

Correct AnswerverifiedShow Answer

When seeking financial backing from a venture capitalist, a small business owner should realize that the venture capitalist will

Correct AnswerverifiedShow Answer

Venture capitalists provide funds for small businesses as part of their philanthropy programs.

Correct AnswerverifiedShow Answer

Many businesses started by entrepreneurs have grown into major corporations employing thousands of workers.

Correct AnswerverifiedShow Answer

Due to the credit crunch that developed during the Great Recession, many small businesses found that ________ were more willing to lend money to smaller operations.

Correct AnswerverifiedShow Answer

To be successful, entrepreneurs are dependent on the support of others for encouragement.

Correct AnswerverifiedShow Answer

Most entrepreneurs get the ideas for their products and services from a flash of inspiration.

Correct AnswerverifiedShow Answer

Which of the following employment statistics about small businesses is true?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Small businesses often have advantages in international markets. Which best describes one those advantages?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

While the first job for many people is working for a small business, larger corporations create most of the permanent new jobs.

Correct AnswerverifiedShow Answer

Grant received an e-mail stating that HE COULD EARN THOUSANDS!!!! just working a few hours from home. Most likely Grant's e-mail was a work-at-home scam.

Correct AnswerverifiedShow Answer

Which of the following government agencies is responsible for encouraging the development of small business?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Amir hopes to start his own business someday. He should not talk to other small business owners about his plans because they might steal his ideas.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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