Entrepreneurship Midterm Quiz: Exam!

83 Questions | By Amazingmakaykay | Last updated: Mar 22, 2022 | Total Attempts: 2704

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Entrepreneurship Midterm Quiz: Exam! - Quiz

In the world today, getting an employment opportunity is a little hard, and people try to open new businesses that will give others the chance to work. The process through which one does this is called entrepreneurship, and many wrong beliefs surround it. Take this entrepreneurship and review what you have learned before the midterms. All the best!

Questions and Answers

1.

Small business is the foundation for all businesses.
- A.
  
  True
- B.
  
  False
2.

Fifty percent of businesses fail within the first four years.
- A.
  
  True
- B.
  
  False
3.

A small business start-up is designed to take advantage of the skills of the founder or founders.
- A.
  
  True
- B.
  
  False
4.

One major aspect of a small business plan, it allows the owner to put information down in writing allowing for evaluation and honest analysis.
- A.
  
  True
- B.
  
  False
5.

Small-business growth is important in the United States and the world.
- A.
  
  True
- B.
  
  False
6.

The Fortune 500 companies employ _________________ employees than ten years ago.
- A.
  
  More
- B.
  
  Same
- C.
  
  Fewer
- D.
  
  Younger
7.

A customer of a small business could be considered an important stakeholder to the success of a company.
- A.
  
  True
- B.
  
  False
8.

A small business’ harvest plan is to put the profits back into the company.
- A.
  
  True
- B.
  
  False
9.

Individuals or other organizations that impact the success of a business are called:
- A.
  
  Corporate Managers
- B.
  
  Capitalists
- C.
  
  Stakeholders
- D.
  
  Owners
10.

The largest group of new business owners is ______________.
- A.
  
  Hispanics
- B.
  
  Retired men
- C.
  
  Women
- D.
  
  Asians
11.

Small business resources are more ____________ than large firms.
- A.
  
  Plentiful
- B.
  
  Constrained
- C.
  
  Restrianed
- D.
  
  Inverse ratio
12.

A small business owner’s relationships with key suppliers and customers are of relatively little importance in a business’ success.
- A.
  
  True
- B.
  
  False
13.

The most important person in a small business is the founder.
- A.
  
  True
- B.
  
  False
14.

One advantage that a large firm has over a small firm is economies of scale.
- A.
  
  True
- B.
  
  False
15.

The owner must be aware of his own tolerance of risk and establish a business that is consistent with that tolerance.
- A.
  
  True
- B.
  
  False
16.

Starting a new business could result from a particular event or condition within an individual's environment.
- A.
  
  True
- B.
  
  False
17.

Established businesses may be hesitant about buying from a start-up small business.
- A.
  
  True
- B.
  
  False
18.

Family members are in a unique position to keep an individual focused on pursuing the wrong approach to an issue.
- A.
  
  True
- B.
  
  False
19.

All of these are advantages for a small business except:
- A.
  
  Respond quickly to changes
- B.
  
  Owned and run by the same person
- C.
  
  Economies of sale
- D.
  
  Greater flexibility
20.

____________________ states that individuals act to maximize their own individual benefit.
- A.
  
  Individual benefit theory
- B.
  
  Organizational benefit theory
- C.
  
  Self fulfilling prophesy
- D.
  
  Agency theory
21.

The potential entrepreneur needs to consider ____________ when starting a new business.
- A.
  
  Risk tolerence
- B.
  
  Prior experience
- C.
  
  Personality orientation
- D.
  
  All of these answers are correct
22.

The term for when a new business has reached a level where revenue coming into the firm is sufficient to cover expenses:
- A.
  
  Equal financial ratio
- B.
  
  No risk level
- C.
  
  Risk tolerance
- D.
  
  Break-even point
23.

When should an owner ensure there are sufficient financial resources to operate the business?
- A.
  
  Prior to the start
- B.
  
  Opening day
- C.
  
  First payroll
- D.
  
  Six month review
24.

The small business owner must have the necessary skills and must understand the marketplace.
- A.
  
  True
- B.
  
  False
25.

Large firms can respond more quickly to changes around them and fill niches better than small businesses.
- A.
  
  True
- B.
  
  False