SMALL BUSINESS MANAGEMENT EXAMS [2026] UPDATED
ACTUAL Exam | Question and Answer | DETAILED ANSWER
EXPLANATIONS
• "Harvesting the business" may involve which of the following activities? -
✓✓Selling the business
Issuing the company's stock to the public
Passing the business on to the next generation of family members
All of these choices
• A(n) _____ is a small firm that provides needed income while also allowing
flexibility in the owner's daily life. -✓✓lifestyle business
• A firm that provides substantial profits to its owner is called a(n) -✓✓attractive
small firm.
• A(n) _____ personality is pragmatic and likes order and planning operations. -
✓✓manager
• A(n) _____ personality focuses on the opportunity and providing results for the
customer. -✓✓entrepreneur
• Small businesses employ 47 percent of _____ employees. -✓✓high-tech
female
minority
all
,• Small businesses are important because -✓✓they provide opportunities for
entrepreneurs.
they create meaningful jobs.
they foster local economies
they do all of these choices.
• Many entrepreneurs are highly motivated by the prospect of -✓✓making money.
• Evelyn opened a small boutique catering to a very narrowly defined target
market. Evelyn's competitive edge is -✓✓the niche market.
• An entrepreneur's success generally arises from -✓✓having a desire to lead.
having a clear mission.
recognizing that business success requires hard work and long hours.
all of these choices
• The term gazelle is sometimes used to describe a(n) -✓✓high-potential venture.
• A(n) _____ is a person who becomes an entrepreneur to escape an undesirable
job situation. -✓✓corporate refugee
• Small businesses that have great prospects for growth are called -✓✓gazelles.
• Legend holds that Abraham Lincoln walked miles to return two cents change to a
customer. His actions demonstrate -✓✓integrity and responsibility.
, • The saying "When in Rome, do as the Romans do" reflects a philosophy of
ethical -✓✓relativism
• Providing support to the community is an example of a(n) _____ responsibility
for a small business. -✓✓discretionary.
• Which of the following is the most frequently observed form of workplace
misconduct? -✓✓Abusive behavior
• Which of the following is an example of an employee acting unethically toward
his or her employer? -✓✓Taking unjustified sick leave
• Ethical issues -✓✓involve questions of right and wrong.
• What is the best place to start your search for a solution to a challenging ethical
problem? -✓✓Identify the root of the problem.
• Perhaps the most widely recommended principle for ethical behavior is to do
what -✓✓you would want others to do for you.
• _____ is the term for when an employee steals money from a firm. -
✓✓Embezzlement
• Which of the following make up the employer's payroll tax burden? -✓✓Social
Security, Medicare, and unemployment taxes
ACTUAL Exam | Question and Answer | DETAILED ANSWER
EXPLANATIONS
• "Harvesting the business" may involve which of the following activities? -
✓✓Selling the business
Issuing the company's stock to the public
Passing the business on to the next generation of family members
All of these choices
• A(n) _____ is a small firm that provides needed income while also allowing
flexibility in the owner's daily life. -✓✓lifestyle business
• A firm that provides substantial profits to its owner is called a(n) -✓✓attractive
small firm.
• A(n) _____ personality is pragmatic and likes order and planning operations. -
✓✓manager
• A(n) _____ personality focuses on the opportunity and providing results for the
customer. -✓✓entrepreneur
• Small businesses employ 47 percent of _____ employees. -✓✓high-tech
female
minority
all
,• Small businesses are important because -✓✓they provide opportunities for
entrepreneurs.
they create meaningful jobs.
they foster local economies
they do all of these choices.
• Many entrepreneurs are highly motivated by the prospect of -✓✓making money.
• Evelyn opened a small boutique catering to a very narrowly defined target
market. Evelyn's competitive edge is -✓✓the niche market.
• An entrepreneur's success generally arises from -✓✓having a desire to lead.
having a clear mission.
recognizing that business success requires hard work and long hours.
all of these choices
• The term gazelle is sometimes used to describe a(n) -✓✓high-potential venture.
• A(n) _____ is a person who becomes an entrepreneur to escape an undesirable
job situation. -✓✓corporate refugee
• Small businesses that have great prospects for growth are called -✓✓gazelles.
• Legend holds that Abraham Lincoln walked miles to return two cents change to a
customer. His actions demonstrate -✓✓integrity and responsibility.
, • The saying "When in Rome, do as the Romans do" reflects a philosophy of
ethical -✓✓relativism
• Providing support to the community is an example of a(n) _____ responsibility
for a small business. -✓✓discretionary.
• Which of the following is the most frequently observed form of workplace
misconduct? -✓✓Abusive behavior
• Which of the following is an example of an employee acting unethically toward
his or her employer? -✓✓Taking unjustified sick leave
• Ethical issues -✓✓involve questions of right and wrong.
• What is the best place to start your search for a solution to a challenging ethical
problem? -✓✓Identify the root of the problem.
• Perhaps the most widely recommended principle for ethical behavior is to do
what -✓✓you would want others to do for you.
• _____ is the term for when an employee steals money from a firm. -
✓✓Embezzlement
• Which of the following make up the employer's payroll tax burden? -✓✓Social
Security, Medicare, and unemployment taxes
