Question 1

One common mistake that small business owners make is to develop long, detailed business plans that bankers and investors simply won't take the time to read.

Accepted Answer

A) True 
 B)False

Question 2

Successful entrepreneurs typically view their failures as opportunities to learn so that they can do better next time.

Accepted Answer

A) True 
 B)False

Question 3

To be a successful entrepreneur, you must fit the entrepreneurial profile.

Accepted Answer

A) True 
 B)False

Question 4

Mary Kate is a successful entrepreneur. Which of the following would best describe her?

Accepted Answer

A)   She has very little tolerance for uncertainty.
B)   She is very laid back in her approach to running a business.
C)   She believes that most of her success is due to luck and the hard work of others.
D)   She has a great deal of faith in her business ideas, even when others express doubts.

Question 5

About half of all start-ups use credit cards as a source of financing.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a significant drawback of getting into business by entering into a franchise arrangement?

Accepted Answer

A)   The initial cost of most well-known franchises can be quite inexpensive.
B)   It is less difficult to get out of than other forms of business ownership.
C)   The owner must pay an on-going royalty to the franchiser.
D)   A franchisee has more independence and flexibility than the owner of a business that is started from scratch.

Question 7

What do entrepreneurs tend to be tolerant of?

Accepted Answer

A)   Poverty: They are usually more interested in changing the world than in making money.
B)   Incompetence in others: They tend to believe that the only way to get things done is to do it themselves.
C)   Delays in their ability to get their companies up and running: They have enormous patience and unlimited faith that they will ultimately prevail.
D)   Uncertainty: They view business uncertainty as something they can turn to their advantage.

Question 8

A key reason for developing a formal business plan is that having such a plan is absolutely critical when seeking external financing.

Accepted Answer

A) True 
 B)False

Question 9

What would a commercial lender expect to find in a business plan?

Accepted Answer

A)   a description of the business, competitive analysis, operating procedures, and financial data
B)   a community market survey, description of the business, and operating procedures
C)   a description of the business, the appendix, and list of references
D)   a description of product offered, description of relationship with suppliers, operating procedures, and description of needs in the community

Question 10

The majority of new small businesses obtain most of their initial financing from bank loans.

Accepted Answer

A) True 
 B)False

Question 11

Starting a business from scratch rather than buying an existing company means that the owner has more control over all aspects of the company's organization, structure, and strategy. This can be both a major advantage and a major disadvantage.

Accepted Answer

A) True 
 B)False

Question 12

Research suggests that teenagers and young adults make up the fastest growing segment of start-up owners.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following nations is likely to have the lowest percentage of "necessity entrepreneurs"?

Accepted Answer

A)   Uganda
B)   Canada
C)   Peru
D)   Jordan

Question 14

Cultural and political factors help explain why Canada has a much higher entrepreneurship rate than Japan and many European nations.

Accepted Answer

A) True 
 B)False

Question 15

Salome is thinking about starting a small business and is trying to assess the potential opportunities and threats associated with a new start-up. She's talked with friends and associates about her plans, and several have offered her opinions and advice. The comments of four friends are summarized below. Which of these statements would probably be the most helpful to Salome?

Accepted Answer

A)   Don't worry about your lack of business experience and limited business skills. Entrepreneurs can make up for a lack of skills with enthusiasm and hard work.
B)   Hang in there. If a business is going to fail, it almost always happens in the first year. If you can stick it out for more than a year, you'll be on your way to success.
C)   Since your company will be small and new, it's important to impress your customers. Spend a lot of money on upscale offices and state-of-the-art equipment to create a "wow" factor.
D)   Find a market segment that you can profitably serve but which is too small to attract larger companies.

Question 16

The primary factor that influences many people to become entrepreneurs is the opportunity to make more money than they could earn if they worked for someone else.

Accepted Answer

A) True 
 B)False

Question 17

What three factors explain the wide differences in entrepreneurship rates among countries? How do these factors help explain the relatively high rate of entrepreneurship in Canada?

Accepted Answer

The three key factors are: What is the n...

Question 18

Describe three of the basic qualities of successful entrepreneurs. Give two specific examples of successful entrepreneurs who are currently making their mark.

Accepted Answer

The student's answer should include thre...

Question 19

Small business owners typically find that the small size of their companies makes it simple for them to handle all of the management functions by themselves.

Accepted Answer

A) True 
 B)False

Question 20

Dr. George Petrie, educator and a university football coach, once explained his outlook in the statement: "I believe that this is a practical world and that I can only count on what I earn. Therefore, I believe in work-hard work." Dr. Petrie's views suggest that he had an internal locus of control.

Accepted Answer

A) True 
 B)False

Exam 6: Small Business and Entrepreneurship: Economic Rocket Fuel

One common mistake that small business owners make is to develop long, detailed business plans that bankers and investors simply won't take the time to read.

Correct Answer
verified

Small business owners typically find that the small size of their companies makes it simple for them to handle all of the management functions by themselves.

Correct Answer
verified

What do entrepreneurs tend to be tolerant of?

Correct Answer
verified

The primary factor that influences many people to become entrepreneurs is the opportunity to make more money than they could earn if they worked for someone else.

Correct Answer
verified

Mary Kate is a successful entrepreneur. Which of the following would best describe her?

Correct Answer
verified

Which of the following is a significant drawback of getting into business by entering into a franchise arrangement?

Correct Answer
verified

Which of the following nations is likely to have the lowest percentage of "necessity entrepreneurs"?

Correct Answer
verified

Starting a business from scratch rather than buying an existing company means that the owner has more control over all aspects of the company's organization, structure, and strategy. This can be both a major advantage and a major disadvantage.

Correct Answer
verified

What would a commercial lender expect to find in a business plan?

Correct Answer
verified

Describe three of the basic qualities of successful entrepreneurs. Give two specific examples of successful entrepreneurs who are currently making their mark.

Correct Answer
verified
The student's answer should include thre...
View Answer

A key reason for developing a formal business plan is that having such a plan is absolutely critical when seeking external financing.

Correct Answer
verified

About half of all start-ups use credit cards as a source of financing.

Correct Answer
verified

Successful entrepreneurs typically view their failures as opportunities to learn so that they can do better next time.

Correct Answer
verified

The majority of new small businesses obtain most of their initial financing from bank loans.

Correct Answer
verified

To be a successful entrepreneur, you must fit the entrepreneurial profile.

Correct Answer
verified

Cultural and political factors help explain why Canada has a much higher entrepreneurship rate than Japan and many European nations.

Correct Answer
verified

What three factors explain the wide differences in entrepreneurship rates among countries? How do these factors help explain the relatively high rate of entrepreneurship in Canada?

Correct Answer
verified
The three key factors are: What is the n...
View Answer

Correct Answer
verified

Dr. George Petrie, educator and a university football coach, once explained his outlook in the statement: "I believe that this is a practical world and that I can only count on what I earn. Therefore, I believe in work-hard work." Dr. Petrie's views suggest that he had an internal locus of control.

Correct Answer
verified

Research suggests that teenagers and young adults make up the fastest growing segment of start-up owners.

Correct Answer
verified

Exam 6: Small Business and Entrepreneurship: Economic Rocket Fuel

One common mistake that small business owners make is to develop long, detailed business plans that bankers and investors simply won't take the time to read.

Correct AnswerverifiedShow Answer

Small business owners typically find that the small size of their companies makes it simple for them to handle all of the management functions by themselves.

Correct AnswerverifiedShow Answer

What do entrepreneurs tend to be tolerant of?

Correct AnswerverifiedShow Answer

The primary factor that influences many people to become entrepreneurs is the opportunity to make more money than they could earn if they worked for someone else.

Correct AnswerverifiedShow Answer

Mary Kate is a successful entrepreneur. Which of the following would best describe her?

Correct AnswerverifiedShow Answer

Which of the following is a significant drawback of getting into business by entering into a franchise arrangement?

Correct AnswerverifiedShow Answer

Which of the following nations is likely to have the lowest percentage of "necessity entrepreneurs"?

Correct AnswerverifiedShow Answer

Starting a business from scratch rather than buying an existing company means that the owner has more control over all aspects of the company's organization, structure, and strategy. This can be both a major advantage and a major disadvantage.

Correct AnswerverifiedShow Answer

What would a commercial lender expect to find in a business plan?

Correct AnswerverifiedShow Answer

Describe three of the basic qualities of successful entrepreneurs. Give two specific examples of successful entrepreneurs who are currently making their mark.

Correct AnswerverifiedThe student's answer should include thre...View AnswerShow Answer

A key reason for developing a formal business plan is that having such a plan is absolutely critical when seeking external financing.

Correct AnswerverifiedShow Answer

About half of all start-ups use credit cards as a source of financing.

Correct AnswerverifiedShow Answer

Successful entrepreneurs typically view their failures as opportunities to learn so that they can do better next time.

Correct AnswerverifiedShow Answer

The majority of new small businesses obtain most of their initial financing from bank loans.

Correct AnswerverifiedShow Answer

To be a successful entrepreneur, you must fit the entrepreneurial profile.

Correct AnswerverifiedShow Answer

Cultural and political factors help explain why Canada has a much higher entrepreneurship rate than Japan and many European nations.

Correct AnswerverifiedShow Answer

What three factors explain the wide differences in entrepreneurship rates among countries? How do these factors help explain the relatively high rate of entrepreneurship in Canada?

Correct AnswerverifiedThe three key factors are: What is the n...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Dr. George Petrie, educator and a university football coach, once explained his outlook in the statement: "I believe that this is a practical world and that I can only count on what I earn. Therefore, I believe in work-hard work." Dr. Petrie's views suggest that he had an internal locus of control.

Correct AnswerverifiedShow Answer

Research suggests that teenagers and young adults make up the fastest growing segment of start-up owners.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The student's answer should include thre...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The three key factors are: What is the n...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified