Question 1

As a small business owner,Tanika can't afford to provide her employees with the high wages and benefits offered by big corporations.One way to retain her employees and create a high level of motivation would be to:

Accepted Answer

A)  constantly communicate with them that "at least they have a job."
B)  adopt a policy of promoting workers who have been employed the longest.
C)  empower her employees to develop their own ideas.
D)  hire only family members,since they are more loyal.E) A) and C)
F) B) and D)

Question 2

Because college students realize the importance of nursing homes for our aging population,students comprise an attractive market for nursing home insurance policies.

Accepted Answer

A) True 
 B)False

Question 3

Small businesses can provide more personalized service than a large corporation to overseas customers.

Accepted Answer

A) True 
 B)False

Question 4

Ketan is an intrapreneur for a multinational electronics company.As an intrapreneur Ketan:

Accepted Answer

A)  is expected to recruit new managerial talent for his firm.
B)  will use the firm's existing resources to develop new products.
C)  is concerned mainly with improving the firm's public image.
D)  will concentrate on creating new ventures that can be spun off to become independent firms.E) All of the above
F) C) and D)

Question 5

Getting a business plan into the hands of the right people is nearly as important as getting the right information in the plan.

Accepted Answer

A) True 
 B)False

Question 6

Using the analogy of boulders vs.sand for filling a hole,the textbook points out that:

Accepted Answer

A)  small businesses are employing a record number of employees because they have to work twice as hard at producing the same amount of output as a large competitor.
B)  small businesses can serve niche markets that larger firms do not serve well.
C)  the sand represents the small businesses that start and fail each year,while the boulders represent the large companies whose resources permit them to stay the course.
D)  large companies serve market niches so much better than small companies.E) All of the above
F) C) and D)

Question 7

Offering to manage an established business for a percentage of the profits plus a salary offers experience to the would-be entrepreneur and free time to the business owner.

Accepted Answer

A) True 
 B)False

Question 8

The Spotlight on Small Business box "Success Knows No Age",features young people who

Accepted Answer

A)  directed inheritance money they received into profitable business ventures.
B)  turned a social passion into a business opportunity.
C)  realized the American dream at a very young age,and now run multi-million dollar companies.
D)  convinced banks to fund their business ideas.E) A) and C)
F) A) and D)

Question 9

Greg benefited from his experience working for an established private company that provided innovative lighting for large music venues.Although confident that he could start his own lighting business,he had limited capital to buy the necessary equipment needed to successfully compete with established companies.Which of the following strategies would best help Greg achieve his goal of business ownership?

Accepted Answer

A)  Begin by offering to take over management of his employer's business,allowing the owner to enjoy some leisure time
B)  Consider working for a major corporation,live modestly,and save until he has sufficient funds to start his business
C)  Enroll in the closest university and apply for student loans
D)  Open his business and trust that his work experience will bring him success even with insufficient capitalE) C) and D)
F) A) and B)

Question 10

Bad luck is the most often reported cause for small business failure.

Accepted Answer

A) True 
 B)False

Question 11

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) B) and D)
F) A) and B)

Question 12

Due in part to government support,the majority of U.S.small businesses are involved in exporting.

Accepted Answer

A) True 
 B)False

Question 13

Enterprise zones are specific geographic areas that:

Accepted Answer

A)  the government has set aside for major corporations that promise to spend at least $10 million to create new jobs.
B)  attract business investment by offering lower taxes and government support for development.
C)  the government has recognized as having the fastest growth rates in the country.
D)  are characterized by government ownership of small businesses.E) A) and B)
F) All of the above

Question 14

Entrepreneurship is another name for management.

Accepted Answer

A) True 
 B)False

Question 15

The United States government views entrepreneurship as a result of an individual's self-motivation.The government can do very little to encourage an individual to become an entrepreneur.

Accepted Answer

A) True 
 B)False

Question 16

Entrepreneurial spirit is unique to a small business environment.

Accepted Answer

A) True 
 B)False

Question 17

According to the Small Business Administration,poor management is the cause of the majority of small business failures.

Accepted Answer

A) True 
 B)False

Exam 6: Entrepreneurship and Starting a Small Business

Bad luck is the most often reported cause for small business failure.

Correct Answer
verified

Offering to manage an established business for a percentage of the profits plus a salary offers experience to the would-be entrepreneur and free time to the business owner.

Correct Answer
verified

Entrepreneurial spirit is unique to a small business environment.

Correct Answer
verified

As a small business owner,Tanika can't afford to provide her employees with the high wages and benefits offered by big corporations.One way to retain her employees and create a high level of motivation would be to:

Correct Answer
verified

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

Correct Answer
verified

The United States government views entrepreneurship as a result of an individual's self-motivation.The government can do very little to encourage an individual to become an entrepreneur.

Correct Answer
verified

Ketan is an intrapreneur for a multinational electronics company.As an intrapreneur Ketan:

Correct Answer
verified

According to the Small Business Administration,poor management is the cause of the majority of small business failures.

Correct Answer
verified

Using the analogy of boulders vs.sand for filling a hole,the textbook points out that:

Correct Answer
verified

Correct Answer
verified

Because college students realize the importance of nursing homes for our aging population,students comprise an attractive market for nursing home insurance policies.

Correct Answer
verified

Getting a business plan into the hands of the right people is nearly as important as getting the right information in the plan.

Correct Answer
verified

Enterprise zones are specific geographic areas that:

Correct Answer
verified

Due in part to government support,the majority of U.S.small businesses are involved in exporting.

Correct Answer
verified

Entrepreneurship is another name for management.

Correct Answer
verified

Small businesses can provide more personalized service than a large corporation to overseas customers.

Correct Answer
verified

The Spotlight on Small Business box "Success Knows No Age",features young people who

Correct Answer
verified

Exam 6: Entrepreneurship and Starting a Small Business

Bad luck is the most often reported cause for small business failure.

Correct AnswerverifiedShow Answer

Offering to manage an established business for a percentage of the profits plus a salary offers experience to the would-be entrepreneur and free time to the business owner.

Correct AnswerverifiedShow Answer

Entrepreneurial spirit is unique to a small business environment.

Correct AnswerverifiedShow Answer

As a small business owner,Tanika can't afford to provide her employees with the high wages and benefits offered by big corporations.One way to retain her employees and create a high level of motivation would be to:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The United States government views entrepreneurship as a result of an individual's self-motivation.The government can do very little to encourage an individual to become an entrepreneur.

Correct AnswerverifiedShow Answer

Ketan is an intrapreneur for a multinational electronics company.As an intrapreneur Ketan:

Correct AnswerverifiedShow Answer

According to the Small Business Administration,poor management is the cause of the majority of small business failures.

Correct AnswerverifiedShow Answer

Using the analogy of boulders vs.sand for filling a hole,the textbook points out that:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Because college students realize the importance of nursing homes for our aging population,students comprise an attractive market for nursing home insurance policies.

Correct AnswerverifiedShow Answer

Getting a business plan into the hands of the right people is nearly as important as getting the right information in the plan.

Correct AnswerverifiedShow Answer

Enterprise zones are specific geographic areas that:

Correct AnswerverifiedShow Answer

Due in part to government support,the majority of U.S.small businesses are involved in exporting.

Correct AnswerverifiedShow Answer

Entrepreneurship is another name for management.

Correct AnswerverifiedShow Answer

Small businesses can provide more personalized service than a large corporation to overseas customers.

Correct AnswerverifiedShow Answer

The Spotlight on Small Business box "Success Knows No Age",features young people who

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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