Question 1

As Jacob's business advisor, what would you probably advise him to do?

Accepted Answer

A)  Start a business from scratch.
B)  Buy an existing business.
C)  Buy a franchise.
D)  Go into business with his brother.

Question 2

More than three-fourths of all U.S.adults are either self-employed or work for small businesses.

Accepted Answer

A) True 
 B)False

Question 3

The success of small businesses in fostering creativity has caused many large companies to respond by downsizing in order to act more like small companies.

Accepted Answer

A) True 
 B)False

Question 4

The _____

Accepted Answer

A)  "Development and Production"
B)  "Marketing"
C)  "Global Issues"
D)  "Goods, Services and the Production Process"

Question 5

In what industries are small businesses concentrated?

Accepted Answer

Small businesses are concentrated in two...

Question 6

The largest areas of the goods-producing sector are construction and manufacturing.

Accepted Answer

A) True 
 B)False

Question 7

Entrepreneurs usually start with few resources but build their businesses with the collective help of family members and investors.

Accepted Answer

A) True 
 B)False

Question 8

As a business owner, you're responsible for making the decisions that pertain to the profitability of your business.This decision-making freedom best reflects the _____ advantage of small business ownership.

Accepted Answer

A)  independence
B)  first-mover
C)  lifestyle
D)  financial

Question 9

The majority of small businesses are owned by ____.

Accepted Answer

A)  white females
B)  black males
C)  white males
D)  black females

Question 10

A business plan explains the goods and services that you intend to sell and specifies the qualifications of your management team.

Accepted Answer

A) True 
 B)False

Question 11

Explain why some individuals become entrepreneurs.

Accepted Answer

The main reasons include the desire to b...

Question 12

In addition to your initial investment, you will have to pay a(n)  _____ to cover your share of national and regional advertising.

Accepted Answer

A)  advertising fee
B)  management charge
C)  business assessment
D)  royalty fee

Question 13

Which of the following are provided to business people by the SBA?

Accepted Answer

A)  Business training
B)  Individualized advice by a team of retired executives
C)  Help in obtaining financing
D)  All of the above

Question 14

Small business output in the United States generates about _____ of our gross domestic product.

Accepted Answer

A)  10 percent
B)  90 percent
C)  50 percent
D)  75 percent

Question 15

The purpose of starting a business is to satisfy customers.

Accepted Answer

A) True 
 B)False

Question 16

There are more than 40 million small businesses in the United States.

Accepted Answer

A) True 
 B)False

Question 17

Franchises are often quite _____.

Accepted Answer

A)  legally simple
B)  easily acquired
C)  attractive from a tax standpoint
D)  expensive

Question 18

List three reasons why some businesses fail.

Accepted Answer

The failure rate for small bus...

Question 19

Evaluate the differences between starting a new business from scratch and buying an existing business.

Accepted Answer

Although starting a business from scratc...

Question 20

Which of the following is an advantage to starting a business?

Accepted Answer

A)  Financial security
B)  Avoidance of unpleasant work tasks
C)  Opportunity to gain an understanding of all aspects of a business
D)  Lower stress level

Exam 2: Entrepreneurship

Entrepreneurs usually start with few resources but build their businesses with the collective help of family members and investors.

Correct AnswerverifiedShow Answer

List three reasons why some businesses fail.

Correct AnswerverifiedThe failure rate for small bus...View AnswerShow Answer

In addition to your initial investment, you will have to pay a(n) _____ to cover your share of national and regional advertising.

Correct AnswerverifiedShow Answer

The largest areas of the goods-producing sector are construction and manufacturing.

Correct AnswerverifiedShow Answer

The success of small businesses in fostering creativity has caused many large companies to respond by downsizing in order to act more like small companies.

Correct AnswerverifiedShow Answer

Explain why some individuals become entrepreneurs.

Correct AnswerverifiedThe main reasons include the desire to b...View AnswerShow Answer

The majority of small businesses are owned by ____.

Correct AnswerverifiedShow Answer

There are more than 40 million small businesses in the United States.

Correct AnswerverifiedShow Answer

As Jacob's business advisor, what would you probably advise him to do?

Correct AnswerverifiedShow Answer

As a business owner, you're responsible for making the decisions that pertain to the profitability of your business.This decision-making freedom best reflects the _____ advantage of small business ownership.

Correct AnswerverifiedShow Answer

In what industries are small businesses concentrated?

Correct AnswerverifiedSmall businesses are concentrated in two...View AnswerShow Answer

Evaluate the differences between starting a new business from scratch and buying an existing business.

Correct AnswerverifiedAlthough starting a business from scratc...View AnswerShow Answer

Small business output in the United States generates about _____ of our gross domestic product.

Correct AnswerverifiedShow Answer

Franchises are often quite _____.

Correct AnswerverifiedShow Answer

The purpose of starting a business is to satisfy customers.

Correct AnswerverifiedShow Answer

A business plan explains the goods and services that you intend to sell and specifies the qualifications of your management team.

Correct AnswerverifiedShow Answer

Which of the following are provided to business people by the SBA?

Correct AnswerverifiedShow Answer

More than three-fourths of all U.S.adults are either self-employed or work for small businesses.

Correct AnswerverifiedShow Answer

The _____

Correct AnswerverifiedShow Answer

Which of the following is an advantage to starting a business?

Correct AnswerverifiedShow Answer

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The failure rate for small bus...
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The main reasons include the desire to b...
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Small businesses are concentrated in two...
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Although starting a business from scratc...
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Correct Answer
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