Question 1

The business opportunities with the greatest growth potential tend to be in the high technology industries.

Accepted Answer

A) True 
 B)False

Question 2

Successful small business owners are:

Accepted Answer

A)  not good sources for information on starting your own business because they generally do not understand failure.
B)  valuable sources for information since you can learn from their experiences.
C)  good but risky since their keen sense of sniffing-out something with potential will tempt them to steal your ideas.
D)  valuable sources of information,but you should proceed with caution because talking with someone who could eventually be your competitor may cross the line due to federal trade commission laws.E) A) and B)
F) None of the above

Question 3

The small business sector that has the best chance of significant growth is legal services.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following best describes entrepreneurial personality traits?

Accepted Answer

A)  Tolerant of uncertainty and highly energetic.
B)  Risk averse and self-nurturing.
C)  Appreciate direction from others and risk averse.
D)  Prefer to work less hours and prefer to give directions and let others do the foot work.E) A) and B)
F) C) and D)

Question 5

Which of the following explains why individuals accept the risks of business ownership?

Accepted Answer

A)  The potential for learning how to be self-disciplined
B)  The sense of self-satisfaction and independence
C)  The challenge of seeking power
D)  The desire to work fewer hoursE) A) and B)
F) A) and C)

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Hiring family members offers the best answer to the problem of attracting qualified employees.

Accepted Answer

A) True 
 B)False

Question 8

Motivated by his desire to operate his own business,Nick considers purchasing an existing business.As he carefully weighs this option,he is likely to find that:

Accepted Answer

A)  very few owners of small businesses have any interest in selling.
B)  his potential for success would greatly improve if he started his own new firm.
C)  the value of an existing business is determined by what the business owns,what it earns,and what makes it unique.
D)  any entrepreneur willing to sell his/her business is experiencing serious financial problems.E) A) and B)
F) A) and C)

Question 9

Business incubators are usually government-funded facilities intended to:

Accepted Answer

A)  provide health care benefits for small business owners and their families.
B)  offer startup firms low-cost office space and basic business services.
C)  help rebuild the nation's infrastructure.
D)  assist foreign investors in identifying business opportunities in the U.S.E) C) and D)
F) B) and C)

Question 10

As a prospective entrepreneur,Ebony considered a variety of financing sources.Her discussions with a venture capitalist revealed that this type of investor expects to receive a significant ownership interest in her firm.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is characteristic of entrepreneurs?

Accepted Answer

A)  They like certainty
B)  They have the ability to visualize a clear path
C)  They look at problems and see opportunities
D)  They prefer to be inventive rather than worry about whether the invention solves a customer needE) B) and C)
F) A) and B)

Question 12

The two primary concerns of an entrepreneur starting a new business are planning and record keeping.

Accepted Answer

A) True 
 B)False

Question 13

Entrepreneurs looking for a business that gives them the best opportunity to get rich should consider starting a business in:

Accepted Answer

A)  the manufacturing sector.
B)  the food service industry.
C)  a low risk industry.
D)  the agriculture sector.E) A) and D)
F) A) and C)

Question 14

Entrepreneurs are less important now than in the past to the U.S.economy.

Accepted Answer

A) True 
 B)False

Question 15

Identifying "poor management" as the cause of a small business failure likely covers a variety of problems.

Accepted Answer

A) True 
 B)False

Question 16

Prospective entrepreneurs turned down by private lenders have little hope of getting financial help from the Small Business Administration,since the SBA's standards are even tougher than those of private lenders.

Accepted Answer

A) True 
 B)False

Question 17

According to the Small Business Administration's definition,small businesses are independently owned and operated.

Accepted Answer

A) True 
 B)False

Question 18

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) All of the above
F) None of the above

Question 19

A small business management course at a community college may offer entrepreneurs an opportunity to:

Accepted Answer

A)  meet with experienced entrepreneurs and learn from their advice.
B)  try out ideas on a computer simulation before risking real time and money.
C)  listen to a qualified instructor solve all of the problems of small business owners.
D)  be part of a group that will include angel investors.E) A) and B)
F) None of the above

Question 20

Enterprise zones are:

Accepted Answer

A)  government owned properties that are available for entrepreneurial ventures at a reduced cost
B)  similar to incubator facilities but strictly run by city and state governments
C)  blighted areas that contained toxic materials making them unsuitable for business operations
D)  specific locations across the U.S.where entrepreneurs can set-up shop and receive tax breaks for operating in these areasE) All of the above
F) B) and D)

Exam 6: Entrepreneurship and Starting a Small Business

The business opportunities with the greatest growth potential tend to be in the high technology industries.

Correct AnswerverifiedShow Answer

The small business sector that has the best chance of significant growth is legal services.

Correct AnswerverifiedShow Answer

Which of the following explains why individuals accept the risks of business ownership?

Correct AnswerverifiedShow Answer

Which of the following statements is characteristic of entrepreneurs?

Correct AnswerverifiedShow Answer

Entrepreneurs are less important now than in the past to the U.S.economy.

Correct AnswerverifiedShow Answer

Successful small business owners are:

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

According to the Small Business Administration's definition,small businesses are independently owned and operated.

Correct AnswerverifiedShow Answer

Motivated by his desire to operate his own business,Nick considers purchasing an existing business.As he carefully weighs this option,he is likely to find that:

Correct AnswerverifiedShow Answer

Identifying "poor management" as the cause of a small business failure likely covers a variety of problems.

Correct AnswerverifiedShow Answer

Prospective entrepreneurs turned down by private lenders have little hope of getting financial help from the Small Business Administration,since the SBA's standards are even tougher than those of private lenders.

Correct AnswerverifiedShow Answer

Entrepreneurs looking for a business that gives them the best opportunity to get rich should consider starting a business in:

Correct AnswerverifiedShow Answer

Enterprise zones are:

Correct AnswerverifiedShow Answer

Which of the following best describes entrepreneurial personality traits?

Correct AnswerverifiedShow Answer

Business incubators are usually government-funded facilities intended to:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Hiring family members offers the best answer to the problem of attracting qualified employees.

Correct AnswerverifiedShow Answer

A small business management course at a community college may offer entrepreneurs an opportunity to:

Correct AnswerverifiedShow Answer

As a prospective entrepreneur,Ebony considered a variety of financing sources.Her discussions with a venture capitalist revealed that this type of investor expects to receive a significant ownership interest in her firm.

Correct AnswerverifiedShow Answer

The two primary concerns of an entrepreneur starting a new business are planning and record keeping.

Correct AnswerverifiedShow Answer

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