Chapter 5 Quiz example #70980

Which of the following is true of entrepreneurs? a. They run someone else's business. b. They assume the risk of the venture but are not actively involved in operating it. c. They hire professional managers to run their businesses. d. They take a personal stake in the success or failure of the business.

A small business: a. is publicly owned. b. is owned by one individual or a small group. c. meaningfully influences its environment. d. has only one retail outlet.

A two-person software development company with annual sales of $100,000 would be considered a: a. franchise. b. small business. c. joint venture. d. large business.

Miriam pools all her savings to open a bakery that specializes in wedding cakes. She bakes the cakes, runs the store, and creates a website that allows customers to place orders online. Miriam is a(n) _____. a. entrepreneur b. small-business investor c. wholesaler d. venture capitalist

Which of the following is true of small businesses? a. Jobs are created solely by small entrepreneurial companies. b. Small firms specializing in international business create many new jobs. c. Small businesses have a weak presence in the economy. d. Small businesses have no impact on the world's mature economies.

Which of the following is true of innovation? a. Small businesses supply over half of all innovations in the U.S. marketplace each year. b. Innovations are less likely to come from small businesses than from big businesses. c. All successful software firms started out as large organizations. d. All successful new start-ups are innovative dot-com companies.

Which of the following statements on small businesses is true? a. Small businesses sell consumers most of the products made by big manufacturers. b. More major innovations come from big businesses than small businesses. c. All new start-ups are in the field of high-tech communication. d. Big companies are the first to lay off workers during economic downswings.

Which of the following statements on job creation is true? a. Business size, more than entrepreneurial business success, accounts for most new job creation. b. Small firms are the last to hire in times of economic recovery. c. Larger firms hire at a faster rate than smaller firms. d. Large companies are the last to lay off workers during economic downswings.

Which of the following is an example of a business in the service industry? a. A car rental agency b. A department store c. An automobile dealership d. A florist

A niche market is: a. a segment of a market that is not currently being exploited. b. a market in which several large firms compete. c. an area of organizational threat. d. a market in which customer needs are generic in nature.

Due to the strong economies of scale, small businesses generally do not do as well as large businesses in the _____ segment. a. construction b. transportation c. manufacturing d. retailing

A retail business: a. sells directly to producers. b. offers products to wholesalers for sale. c. requires fewer employees than wholesalers. d. sells products manufactured by other firms.

Which of the following is an advantage of a franchise? a. Its start-up costs are either very small or negligent. b. It lets franchisers grow by using the investment money provided by franchisees. c. It allows each franchise outlet to be vastly different from other outlets. d. It allows a franchise to build a business from a scratch using its own business model.

Steven is a polymer scientist with the motivation and expertise needed to start his own business. If he chooses to finance his business in the same way that most new businesspeople finance theirs, he will: a. form a strategic alliance. b. rely on personal resources. c. borrow money from a lender. d. approach a venture capital company.

Small-business investment companies (SBICs): a. take a more balanced approach in their choices than venture capital companies. b. have strict eligibility guidelines. c. have immediate participation loan programs. d. demand a representative on the board of directors of the business.

Which of the following is true of SBA financial programs? a. Managers need approval from the SBA before making major decisions. b. They supply capital in return for stock. c. Eligible firms must be unable to get private financing at reasonable terms. d. They require a representative on the board of directors of a company.

Which of the following is true of most successful entrepreneurs? a. They launch their ventures in their spare time. b. They succeed straight out of college. c. They carefully analyze market conditions. d. They succeed alone.

Which of the following is required to help alert entrepreneurs to potential trouble? a. Effective control systems b. A positive outlook on life c. Sufficient capital d. Dedication

Which of the following statements is true of new businesses? a. A good outlook on life is irrelevant when starting a new business. b. Control systems are unimportant when starting a new business. c. Insufficient capital can contribute to new business failure. d. Luck plays no role in the success of businesses.

Which of the following is false about control systems? a. Weak control systems can lead to serious problems. b. Effective control systems alert entrepreneurs to serious problems. c. A business may not survive without a good control system d. Control systems are not needed to keep a business on track.