Ch01
Student: ___________________________________________________________________________
1. Small businesses are important to our economy because:
A. They are easy to start and profitability is almost guaranteed
B. They contribute 47% of all sales in the USA.
C. They produce about 90% of all new jobs in the economy
D. They are responsible for 25% of the gross domestic product (GDP)
2. The number of small businesses are growing as show by:
A. The fact that there about 90 million small businesses in the U.S.
B. Baby boomers are now the typical profile of an entrepreneur
C. They represent more than 99% of all employers and 97% of exporters
D. Graduates of college entrepreneurship programs are required to open their own small business upon
graduation of their degree
3. There is a trend toward self-employment as shown by:
A. A national poll found that 55% of us want to be our own boss
B. Small businesses grew 125% since 1990
C.Banks have made lending to small businesses a guarantee no matter what the business idea is or the
potential risk that might exist
D. The government has made new regulations that do not favor large companies competing in the
marketplace
4. A small business or micro business is best described as:
A. A business that will expect abnormal sales, growth and profits
B. A business that offers owners very little freedom and financial independence
C. A business that in all cases will be set up to grow into a larger operation
D.An independently owned & operated business that is not dominant in its field and does not engage in
many innovative practices
5. What best defines the unique contribution of a small business?
A. Sources of new ideas or services that larger businesses may be unable to provide
B. The place to find more unskilled workers in the marketplace
C. Owners that have higher education than managers & executives of larger firms
D. They are fewer of them in the US compared to other regions of the world
6. What might be some of the problems facing small businesses?
A. Easy financing that results in too many choices for funding
B. Inadequate management that leads to inexperience in planning and overall management
responsibilities
C. Very little government regulations that can create a sense of anything goes from an ownership
standpoint
D. Having skills in may areas that makes small business management a very little challenge
7. What might be a good reason why people start small businesses?
A. To avenge their past bosses of previous jobs held
B. To accumulate new titles and responsibilities
C. To achieve financial independence
D. To get acquainted with writing business plans
,8. What best describes characteristics of successful entrepreneurs?
A. They are usually short in stature
B. They are recipients of great inheritances
C. They have exceptional high IQ's
D. They are persistent and dedicated to their business
9. What leads to success in managing a small business?
A. Reaching a million dollar mark in sales
B. Serving an adequate and well-defined market
C. Hiring marketing professionals
D. Locating near a large city
10. What might be areas or an area of concern for small business owners?
A. Inadequate management
B. Excessive hiring pool of qualified candidates
C. Too much cash flow
D. The absence of government regulations and record keeping
11. Studies of the behavior of people in small business show that failure often results from;
A. Having too many family members involved in making decisions for the business
B. Too many decisions were made using a consultant
C. To much decision making was left to chance
D. To many decisions were during late hours when owner was tired
12. What would be the value of doing an introspective personal analysis before deciding to become a small
business owner?
A. A personal evaluation can help determine whether you have the combination of qualities needed to
succeed
B. To see if there is enough money to be made before starting your own small business
C. To see if the type of business idea would be popular
D. To find out how many family members would be available to work in the business
13. When personal and business objectives can be integrated in small business:
A. It is confusing to state the goals of the company
B. The chances of success are increased for the business
C. The company always reaches its sales goals
D. The business has little turnover in employees
14. Small business owners are motivated by personal and family considerations as shown by:
A. Their excessive payrolls
B. The trend of children helping their parents and showing up on the payroll
C. The lending practices that occur to family members
D. The advice that small business owners look for from family members
15. One problem a small business owner should compensate for is:
A. Inadequate management
B. The excessive hiring pool of qualified candidates
C. Too much cash flow
D. The absence of government regulations and record keeping
16. What typically is the skill that most new business owners possess
A. Human resource skills
B. Management experience
C. Financial skills
D. Marketing skills
,17. To be classified as "small", a small business must have at least two of the following features:
A. Independent management & the area of operation is primarily local
B. Small in comparison to larger competitors and a budget less than 1 million
C. Ownership is held by one or few individuals and sales are less than 2 million
D. The SBA has provided the loan for startup and there are less than 10 employees
18. Current problems facing small businesses include?
A. Real-estate and zoning issues
B. Lack of internet skills
C. Too many competitors that finance their own businesses
D. Unexpected growth and financing issues
19. Innovative business ideas for tomorrow's business owners include all of the following except:
A. Catering
B. Financial planning
C. Call centers
D. Senior fitness and recreation
20. Business incubator's can help small business owners succeed by:
A. Providing management assistance & shared office services
B. Finding out the competition and making deals for cooperation
C. Hiring their employees and training them
D. Keeping their financial records up-to-date
21. Successful entrepreneurs have a strong sense of initiative because they are willing to:
A. Make phone calls to potential customers
B. Work long, hard hours to reach their goals
C. Obtain used business equipment at any given time
D. Hire contractors over full and part-time workers whenever possible
22. One of the advantages that small business owners have is:
A. They get paid more often as a small business owner
B. They get special advertising rates compared to larger companies
C. The ability to react more quickly to changes inside or outside the business leading to small business
success
D. The choice to work on whatever assignments the owner chooses
23. The fastest growing industry is:
A. The service industry
B. The manufacturing industry
C. The defense industry
D. The professional sports industry
24. The greatest future employment will come from:
A. Large companies
B. Government jobs
C. Military
D. Small business
25. An advantage of starting your own business is that you can:
A. Borrow unlimited amounts of money
B. Choose the business idea
C. Hire past business owners
D. Choose the hours you want to work in the business
, 26. Growth of a small business is difficult to the owner because he may:
A. Need outside investors and loose control of the business
B. Not want the business to be bought out by a larger company
C. Not like to work more hours
D. Not know how to handle the additional income
27. Small business owners may be faced with discontinuance because:
A. They did not use the latest technology
B. They hired too many family members
C. They were not successful at the nuances of running a small business
D. They chose the incorrect type of business operation
28. Overall, the general public favors small business based on the fact:
A. Everyone has been a customer of a small business at some point
B. Small business owners are friendly
C. Small business owners are married and have families
D. That one survey found that half of the respondents expressed an interest in owning a small business
29. Business incubators will continue to be a support to small businesses because
A. Small business owners can not afford paying for consultants
B. Small business owners have to visit a business incubator before they are allowed to open their business
C. The start-up and survival of a small business is difficult
D. Small business owners prefer not to hire their own employees
30. Entrepreneurship is attractive to all ages based on the research that shows:
A. Baby boomers can be successful as business owners
B. Young entrepreneurs have the best business ideas
C. Entrepreneurship knows no age minimums or age limits
D. College course offerings in entrepreneurship has increased over the past several years
31. Interest in small business is decreasing
True False
32. Today, there is a trend towards self-employment
True False
33. You must be at least 21 years old to start your own business
True False
34. The Small Business Act of 1953 states that "a small business is one that has dual ownership and is not
dominant in its field of operation"
True False
35. One of the unique contributions of small businesses are that they keep larger firms competitive
True False
36. Downsizing or rightsizing is reducing the number of employees in order to achieve efficiency
True False
37. Employees in large workplaces have higher job satisfaction than those in smaller firms
True False
38. There is a declining emphasis on traditional "smoke stack" industries with a shift toward more people-
oriented activities
True False
39. Successful entrepreneurs exhibit persistence as 16% of new business owners have been in business
before
True False
Student: ___________________________________________________________________________
1. Small businesses are important to our economy because:
A. They are easy to start and profitability is almost guaranteed
B. They contribute 47% of all sales in the USA.
C. They produce about 90% of all new jobs in the economy
D. They are responsible for 25% of the gross domestic product (GDP)
2. The number of small businesses are growing as show by:
A. The fact that there about 90 million small businesses in the U.S.
B. Baby boomers are now the typical profile of an entrepreneur
C. They represent more than 99% of all employers and 97% of exporters
D. Graduates of college entrepreneurship programs are required to open their own small business upon
graduation of their degree
3. There is a trend toward self-employment as shown by:
A. A national poll found that 55% of us want to be our own boss
B. Small businesses grew 125% since 1990
C.Banks have made lending to small businesses a guarantee no matter what the business idea is or the
potential risk that might exist
D. The government has made new regulations that do not favor large companies competing in the
marketplace
4. A small business or micro business is best described as:
A. A business that will expect abnormal sales, growth and profits
B. A business that offers owners very little freedom and financial independence
C. A business that in all cases will be set up to grow into a larger operation
D.An independently owned & operated business that is not dominant in its field and does not engage in
many innovative practices
5. What best defines the unique contribution of a small business?
A. Sources of new ideas or services that larger businesses may be unable to provide
B. The place to find more unskilled workers in the marketplace
C. Owners that have higher education than managers & executives of larger firms
D. They are fewer of them in the US compared to other regions of the world
6. What might be some of the problems facing small businesses?
A. Easy financing that results in too many choices for funding
B. Inadequate management that leads to inexperience in planning and overall management
responsibilities
C. Very little government regulations that can create a sense of anything goes from an ownership
standpoint
D. Having skills in may areas that makes small business management a very little challenge
7. What might be a good reason why people start small businesses?
A. To avenge their past bosses of previous jobs held
B. To accumulate new titles and responsibilities
C. To achieve financial independence
D. To get acquainted with writing business plans
,8. What best describes characteristics of successful entrepreneurs?
A. They are usually short in stature
B. They are recipients of great inheritances
C. They have exceptional high IQ's
D. They are persistent and dedicated to their business
9. What leads to success in managing a small business?
A. Reaching a million dollar mark in sales
B. Serving an adequate and well-defined market
C. Hiring marketing professionals
D. Locating near a large city
10. What might be areas or an area of concern for small business owners?
A. Inadequate management
B. Excessive hiring pool of qualified candidates
C. Too much cash flow
D. The absence of government regulations and record keeping
11. Studies of the behavior of people in small business show that failure often results from;
A. Having too many family members involved in making decisions for the business
B. Too many decisions were made using a consultant
C. To much decision making was left to chance
D. To many decisions were during late hours when owner was tired
12. What would be the value of doing an introspective personal analysis before deciding to become a small
business owner?
A. A personal evaluation can help determine whether you have the combination of qualities needed to
succeed
B. To see if there is enough money to be made before starting your own small business
C. To see if the type of business idea would be popular
D. To find out how many family members would be available to work in the business
13. When personal and business objectives can be integrated in small business:
A. It is confusing to state the goals of the company
B. The chances of success are increased for the business
C. The company always reaches its sales goals
D. The business has little turnover in employees
14. Small business owners are motivated by personal and family considerations as shown by:
A. Their excessive payrolls
B. The trend of children helping their parents and showing up on the payroll
C. The lending practices that occur to family members
D. The advice that small business owners look for from family members
15. One problem a small business owner should compensate for is:
A. Inadequate management
B. The excessive hiring pool of qualified candidates
C. Too much cash flow
D. The absence of government regulations and record keeping
16. What typically is the skill that most new business owners possess
A. Human resource skills
B. Management experience
C. Financial skills
D. Marketing skills
,17. To be classified as "small", a small business must have at least two of the following features:
A. Independent management & the area of operation is primarily local
B. Small in comparison to larger competitors and a budget less than 1 million
C. Ownership is held by one or few individuals and sales are less than 2 million
D. The SBA has provided the loan for startup and there are less than 10 employees
18. Current problems facing small businesses include?
A. Real-estate and zoning issues
B. Lack of internet skills
C. Too many competitors that finance their own businesses
D. Unexpected growth and financing issues
19. Innovative business ideas for tomorrow's business owners include all of the following except:
A. Catering
B. Financial planning
C. Call centers
D. Senior fitness and recreation
20. Business incubator's can help small business owners succeed by:
A. Providing management assistance & shared office services
B. Finding out the competition and making deals for cooperation
C. Hiring their employees and training them
D. Keeping their financial records up-to-date
21. Successful entrepreneurs have a strong sense of initiative because they are willing to:
A. Make phone calls to potential customers
B. Work long, hard hours to reach their goals
C. Obtain used business equipment at any given time
D. Hire contractors over full and part-time workers whenever possible
22. One of the advantages that small business owners have is:
A. They get paid more often as a small business owner
B. They get special advertising rates compared to larger companies
C. The ability to react more quickly to changes inside or outside the business leading to small business
success
D. The choice to work on whatever assignments the owner chooses
23. The fastest growing industry is:
A. The service industry
B. The manufacturing industry
C. The defense industry
D. The professional sports industry
24. The greatest future employment will come from:
A. Large companies
B. Government jobs
C. Military
D. Small business
25. An advantage of starting your own business is that you can:
A. Borrow unlimited amounts of money
B. Choose the business idea
C. Hire past business owners
D. Choose the hours you want to work in the business
, 26. Growth of a small business is difficult to the owner because he may:
A. Need outside investors and loose control of the business
B. Not want the business to be bought out by a larger company
C. Not like to work more hours
D. Not know how to handle the additional income
27. Small business owners may be faced with discontinuance because:
A. They did not use the latest technology
B. They hired too many family members
C. They were not successful at the nuances of running a small business
D. They chose the incorrect type of business operation
28. Overall, the general public favors small business based on the fact:
A. Everyone has been a customer of a small business at some point
B. Small business owners are friendly
C. Small business owners are married and have families
D. That one survey found that half of the respondents expressed an interest in owning a small business
29. Business incubators will continue to be a support to small businesses because
A. Small business owners can not afford paying for consultants
B. Small business owners have to visit a business incubator before they are allowed to open their business
C. The start-up and survival of a small business is difficult
D. Small business owners prefer not to hire their own employees
30. Entrepreneurship is attractive to all ages based on the research that shows:
A. Baby boomers can be successful as business owners
B. Young entrepreneurs have the best business ideas
C. Entrepreneurship knows no age minimums or age limits
D. College course offerings in entrepreneurship has increased over the past several years
31. Interest in small business is decreasing
True False
32. Today, there is a trend towards self-employment
True False
33. You must be at least 21 years old to start your own business
True False
34. The Small Business Act of 1953 states that "a small business is one that has dual ownership and is not
dominant in its field of operation"
True False
35. One of the unique contributions of small businesses are that they keep larger firms competitive
True False
36. Downsizing or rightsizing is reducing the number of employees in order to achieve efficiency
True False
37. Employees in large workplaces have higher job satisfaction than those in smaller firms
True False
38. There is a declining emphasis on traditional "smoke stack" industries with a shift toward more people-
oriented activities
True False
39. Successful entrepreneurs exhibit persistence as 16% of new business owners have been in business
before
True False
