MIE 201 MAIN EXAMINATIOM 2026/2027 QUESTIONS
AND SOLUTIONS RATED A+
✔✔advantages of small business - ✔✔Independence
Costs
Flexibility
Focus - finely defined market niche
Reputation
✔✔disadvantages of a small business - ✔✔High stress level
High failure rate
Undercapitalization
Managerial inexperience or incompetence
Inability to cope with growth
✔✔entrepreneurship characteristics - ✔✔- a process
- persistence
- passion
- value creation
- creative
✔✔entrepreneur - ✔✔- anyone who starts a new business
✔✔the entrepreneurial spirit - ✔✔- the positive, forward-thinking desire to create
profitable, sustainable business enterprises
- vital to the health of the economy and to everyone's standard of living
✔✔Microentrepreneur - ✔✔entrepreneurs who start a business with 5 or fewer people
✔✔social entrepreneur - ✔✔individuals who use entrepreneurship to address social
problems
✔✔what do you need to start a small business? - ✔✔- an entrepreneur
- an idea
- a drive to succeed
✔✔economic roles of small business - ✔✔- provide new jobs
- introduce new products
- service large corporations
- half the US payroll
- risk takers
- specialized goods and services
✔✔Industries that attract small businesses - ✔✔Retailing and wholesaling, services,
manufacturing, and high technology
, ✔✔sharing economy - ✔✔an economic model involving the sharing of underutilized
resources, aka "gig economy"
like Uber
✔✔2 types of small businesses - ✔✔- lifestyle
- high-growth
✔✔lifestyle small businesses - ✔✔- run by individuals
- limited products and/or services
- limited resources
- limited marketplace
- aren't designed to grow into large corporations
- built around personal and financial needs of an individual or a family
ex: mom and pop surf shop
✔✔high-growth small businesses - ✔✔- run by teams
- multiple products and/or services
- investment capital
- large marketplace
- expand rapidly by obtaining a sizable supply of investment capital
ex: Tesla growing into a large corporation
✔✔factors contributing to an increase in small business - ✔✔- E-commerce
- technology
- social media
- growing diversity in entrepreneurship
- corporate downsizing and outsourcing
✔✔why people start their own companies - ✔✔- more control over their futures
- tired of working for someone else
- passion for new products
- pursue business goals that are important to them on a personal level
- inability to find attractive employment anywhere else
✔✔qualities of successful entrepreneurs - ✔✔- love what they do, passion to succeed
- highly disciplined
- self-confident and optimistic
- like to control their own destiny
- relate well with others
- curious and eager
- learn from mistakes and see failures as opportunities
- balance risk and reward
AND SOLUTIONS RATED A+
✔✔advantages of small business - ✔✔Independence
Costs
Flexibility
Focus - finely defined market niche
Reputation
✔✔disadvantages of a small business - ✔✔High stress level
High failure rate
Undercapitalization
Managerial inexperience or incompetence
Inability to cope with growth
✔✔entrepreneurship characteristics - ✔✔- a process
- persistence
- passion
- value creation
- creative
✔✔entrepreneur - ✔✔- anyone who starts a new business
✔✔the entrepreneurial spirit - ✔✔- the positive, forward-thinking desire to create
profitable, sustainable business enterprises
- vital to the health of the economy and to everyone's standard of living
✔✔Microentrepreneur - ✔✔entrepreneurs who start a business with 5 or fewer people
✔✔social entrepreneur - ✔✔individuals who use entrepreneurship to address social
problems
✔✔what do you need to start a small business? - ✔✔- an entrepreneur
- an idea
- a drive to succeed
✔✔economic roles of small business - ✔✔- provide new jobs
- introduce new products
- service large corporations
- half the US payroll
- risk takers
- specialized goods and services
✔✔Industries that attract small businesses - ✔✔Retailing and wholesaling, services,
manufacturing, and high technology
, ✔✔sharing economy - ✔✔an economic model involving the sharing of underutilized
resources, aka "gig economy"
like Uber
✔✔2 types of small businesses - ✔✔- lifestyle
- high-growth
✔✔lifestyle small businesses - ✔✔- run by individuals
- limited products and/or services
- limited resources
- limited marketplace
- aren't designed to grow into large corporations
- built around personal and financial needs of an individual or a family
ex: mom and pop surf shop
✔✔high-growth small businesses - ✔✔- run by teams
- multiple products and/or services
- investment capital
- large marketplace
- expand rapidly by obtaining a sizable supply of investment capital
ex: Tesla growing into a large corporation
✔✔factors contributing to an increase in small business - ✔✔- E-commerce
- technology
- social media
- growing diversity in entrepreneurship
- corporate downsizing and outsourcing
✔✔why people start their own companies - ✔✔- more control over their futures
- tired of working for someone else
- passion for new products
- pursue business goals that are important to them on a personal level
- inability to find attractive employment anywhere else
✔✔qualities of successful entrepreneurs - ✔✔- love what they do, passion to succeed
- highly disciplined
- self-confident and optimistic
- like to control their own destiny
- relate well with others
- curious and eager
- learn from mistakes and see failures as opportunities
- balance risk and reward
