Quiz: Entrepreneurship And Small Business

10 Questions | By Nksandoval | Last updated: Mar 22, 2022 | Total Attempts: 5662

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Quiz: Entrepreneurship And Small Business - Quiz

Chapter 6 quiz from Understanding Business text book.

Questions and Answers

1.

An entrepreneur:
- A.
  
  Manages a business for someone else
- B.
  
  Owns controlling interest in the stock of a major corporation
- C.
  
  Manages a business that operates in more than one country
- D.
  
  Accepts the risk of starting and running a business
2.

One way an intrapreneur differs from an entrepreneur is that:
- A.
  
  Intrapreneurs start nonprofit organizations while entrepreneurs start profit-seeking businesses
- B.
  
  Intrapreneurs are practical while entrepreneurs are creative
- C.
  
  Intrapreneurs work within existing corporations while entrepreneurs assume the risks of starting their own business
- D.
  
  Intrapreneurs limit their efforts to financial investments, while entrepreneurs are involved in all areas of business activity
3.

When looking at the advantages and disadvantages of starting various types of businesses, it apears that:
- A.
  
  Businesses that are easy to start often offer the greatest potential for long term growth and profits
- B.
  
  The greatest security is available in the manufacturing sector
- C.
  
  Businesses that offer a chance for high profits tend to be difficult to start and hard to keep going
- D.
  
  The reason the service sector is growing so rapidly is that service firms are easy to start, easy to keep going, and offer both growth opportunities and plenty of security
4.

Manny is about to graduate from college, and is looking for full time employment. He has decided to concentrate on looking for a job with a major corporation. His job search strategy:
- A.
  
  Makes sense, because managerial skills can only be fully developed by working for big firms
- B.
  
  Is smart because major corporations are still the most important source of employment growth in the United States
- C.
  
  Indicates that Manny wants a chance to utilize his entrepreneurial talents
- D.
  
  Is likely to limit his job prospects since most new jobs are with small businesses
5.

An examination of statistics about people who start their own businesses reveal that:
- A.
  
  Many small business owners got their entrepreneurial idea from a previous job they held
- B.
  
  It is rare for managers with experience working withing big corporations to start their own businesses
- C.
  
  People who start their own businesses right after graduating from high school or college are generally more successful than those who first work for someone else
- D.
  
  Most small business owners have a great deal of personal wealth
6.

Which of the following suggestions would and experienced entrepreneur most likely give to someone who is thinking about starting their own business?
- A.
  
  Starting a new business is always better than buying an existing firm
- B.
  
  Even small businesses must keep accurate records
- C.
  
  In order to keep costs low when the company is just getting started, wait at least a year before hiring and accountant or lawyer
- D.
  
  Prior business experience is not really important in managing a new firm
7.

The primary focus in managing a business should likely be:
- A.
  
  Human relations and accounting
- B.
  
  Financing and planning
- C.
  
  Marketing and public relations
- D.
  
  Staffing and controlling
8.

When seeking a loan from a bank, an entrepreneur hoping to start a new business should realize that bankers will:
- A.
  
  Expect to receive a share of ownership in the busineses in exchange for their loan
- B.
  
  Expect the entrepreneur to have a well prepared business plan
- C.
  
  Generally make loans only to small businesses in computer related industries
- D.
  
  Offer only only very short-term financing
9.

Luis is a partner in a firm that specializes in producing vitamins and health food products. While the business is considered small by U.S. standards, he is attempting to persuade his partner to expand internationally. Luis would list which of the following as an advantage of going international?
- A.
  
  Exporting can absorb excess inventory
- B.
  
  Marketing will encounter cultural similarities in prospective markets
- C.
  
  The company can take extra time to ship internationally
- D.
  
  Selling your products in other markets may shorten their life cycle
10.

One of the main reasons why many American small businesses are not involved in global business transactions is:
- A.
  
  There is only a limited market for their products
- B.
  
  The government has been against active participation
- C.
  
  Many potential exporters do not know how to get started
- D.
  
  American products are looked upon as being inferior