AAMI Small Business Management - Study for Final
Exam with All Correct & 100% Verified Answers| Actual
Complete Update |Already Graded A+
T or F - Three primary rewards of entrepreneurship are thought to be profit, independence, and
personal fulfillment. ✔Correct Answer-True
T or F - Some estimate that entrepreneurs are four times less likely to be millionaires than are those
who work for others. ✔Correct Answer-False
T of F - A refugee is a person who tried entrepreneurship, failed, and sought
refuge in corporate employment. ✔Correct Answer-False
T or F - Entrepreneurial teams are formed by bringing together two or more persons who together
function as entrepreneurs. ✔Correct Answer-True
T or F - A large percentage of small business owners cite their desire to be their own boss as
the main reason they left their previous employers. ✔Correct Answer-True
T or F - Small firms are at a great disadvantage when it comes to competing based on
customer service. ✔Correct Answer-False
T or F - The ideal age for starting a business appears to be between 40 and 50. ✔Correct Answer-
False
T or F - Unexpectedly stumbling across a business opportunity would not be considered a
precipitating event. ✔Correct Answer-False
Which of the following is classified as an entrepreneur? ✔Correct Answer-An owner-manager who
bought out the founder of a firm
The size standard for small business used in this course would exclude firms that ✔Correct
Answer-have more than 100 employees.
When a 32-year-old funeral director launches a funeral firm after seven years' experience in that
industry, he ✔Correct Answer-is launching his venture into small business entrepreneurship.
Which of the following situations might be a precipitating event? ✔Correct Answer-Getting laid off
by General Motors.
An entrepreneur's concern that his values continued to be reflected in
the ways in which his firm conducts business after he retires is an
example of the concept of ________. ✔Correct Answer-entrepreneurial legacy
T or F - Small businesses that practice skimming of income are acting ethically and legally.
✔Correct Answer-False
T or F - Temptations and pressures to act unethically are thought to be greater
, in big business than in small business. ✔Correct Answer-False
T or F - Small firm owners may be tempted to rationalize bribery or other unethical behavior as
a way of offsetting what seems to be a competitive disadvantage. ✔Correct Answer-True
T or F - Better Business Bureaus serve primarily as assistants to district attorneys, helping expose
corrupt business practices. ✔Correct Answer-False
T or F - Only large corporations can afford to be socially responsible. ✔Correct Answer-False
T or F - The goodwill gained from benefiting the community may be worth more than it costs.
✔Correct Answer-True
The Deep Pockets family was charged by the IRS with income tax fraud for failing to record the cash
they collected for funeral items such as register books and acknowledgement cards. This illegal
practice is known as _______. ✔Correct Answer-Skimming
In a small business, the most important key to ethical performance is ✔Correct Answer-the
personal integrity of the founder or owner.
Bait advertising attempts to: ✔Correct Answer-lure customers with the intention of selling them a
different
product.
An owner of a crematory has returned from a seminar on environmentalism and wishes to act
responsibly in this area. Which of the following actions will accomplish this purpose? ✔Correct
Answer-Eliminate undesirable processing odors.
An example of an industry especially vulnerable to efforts to protect the environment as it relates to
waste discharge is the _____ industry. ✔Correct Answer-Funeral
Which of the following is not one of the basic objectives of the
business plan? ✔Correct Answer-It oulines the approaches other entrepreneurs have taken in the
same industry.
A business plan is best described as a ✔Correct Answer-game plan
A business plan should generally project financial and operational aspects of the proposed business
for the first ✔Correct Answer-three to seven years
Writing a business plan should be thought of as ✔Correct Answer-an ongoing process.
The primary outside users of business plans are ✔Correct Answer-investors and lenders
The answer to the question of whether you need a business plan is ✔Correct Answer-"It just
depends."
The process of planning and executing the development pricing, promotion, and distribution of an
organization's goods/services is called ✔Correct Answer-Marketing
Exam with All Correct & 100% Verified Answers| Actual
Complete Update |Already Graded A+
T or F - Three primary rewards of entrepreneurship are thought to be profit, independence, and
personal fulfillment. ✔Correct Answer-True
T or F - Some estimate that entrepreneurs are four times less likely to be millionaires than are those
who work for others. ✔Correct Answer-False
T of F - A refugee is a person who tried entrepreneurship, failed, and sought
refuge in corporate employment. ✔Correct Answer-False
T or F - Entrepreneurial teams are formed by bringing together two or more persons who together
function as entrepreneurs. ✔Correct Answer-True
T or F - A large percentage of small business owners cite their desire to be their own boss as
the main reason they left their previous employers. ✔Correct Answer-True
T or F - Small firms are at a great disadvantage when it comes to competing based on
customer service. ✔Correct Answer-False
T or F - The ideal age for starting a business appears to be between 40 and 50. ✔Correct Answer-
False
T or F - Unexpectedly stumbling across a business opportunity would not be considered a
precipitating event. ✔Correct Answer-False
Which of the following is classified as an entrepreneur? ✔Correct Answer-An owner-manager who
bought out the founder of a firm
The size standard for small business used in this course would exclude firms that ✔Correct
Answer-have more than 100 employees.
When a 32-year-old funeral director launches a funeral firm after seven years' experience in that
industry, he ✔Correct Answer-is launching his venture into small business entrepreneurship.
Which of the following situations might be a precipitating event? ✔Correct Answer-Getting laid off
by General Motors.
An entrepreneur's concern that his values continued to be reflected in
the ways in which his firm conducts business after he retires is an
example of the concept of ________. ✔Correct Answer-entrepreneurial legacy
T or F - Small businesses that practice skimming of income are acting ethically and legally.
✔Correct Answer-False
T or F - Temptations and pressures to act unethically are thought to be greater
, in big business than in small business. ✔Correct Answer-False
T or F - Small firm owners may be tempted to rationalize bribery or other unethical behavior as
a way of offsetting what seems to be a competitive disadvantage. ✔Correct Answer-True
T or F - Better Business Bureaus serve primarily as assistants to district attorneys, helping expose
corrupt business practices. ✔Correct Answer-False
T or F - Only large corporations can afford to be socially responsible. ✔Correct Answer-False
T or F - The goodwill gained from benefiting the community may be worth more than it costs.
✔Correct Answer-True
The Deep Pockets family was charged by the IRS with income tax fraud for failing to record the cash
they collected for funeral items such as register books and acknowledgement cards. This illegal
practice is known as _______. ✔Correct Answer-Skimming
In a small business, the most important key to ethical performance is ✔Correct Answer-the
personal integrity of the founder or owner.
Bait advertising attempts to: ✔Correct Answer-lure customers with the intention of selling them a
different
product.
An owner of a crematory has returned from a seminar on environmentalism and wishes to act
responsibly in this area. Which of the following actions will accomplish this purpose? ✔Correct
Answer-Eliminate undesirable processing odors.
An example of an industry especially vulnerable to efforts to protect the environment as it relates to
waste discharge is the _____ industry. ✔Correct Answer-Funeral
Which of the following is not one of the basic objectives of the
business plan? ✔Correct Answer-It oulines the approaches other entrepreneurs have taken in the
same industry.
A business plan is best described as a ✔Correct Answer-game plan
A business plan should generally project financial and operational aspects of the proposed business
for the first ✔Correct Answer-three to seven years
Writing a business plan should be thought of as ✔Correct Answer-an ongoing process.
The primary outside users of business plans are ✔Correct Answer-investors and lenders
The answer to the question of whether you need a business plan is ✔Correct Answer-"It just
depends."
The process of planning and executing the development pricing, promotion, and distribution of an
organization's goods/services is called ✔Correct Answer-Marketing
