BA109 Module 6 Exam (Chapters 1-5)
UPDATED Exam Questions and
CORRECT Answers
Which of the following statements about women-owned businesses is false? - Correct
Answer- The survival rate of women-owned businesses is much lower than that of U.S.
businesses overall.
T/F About 75 percent of the businesses in the U.S. can be considered "small" businesses. -
Correct Answer- False
Entrepreneurs who start businesses because they cannot find work any other way are: -
Correct Answer- necessity entrepreneurs.
Entrepreneurs typically possess: - Correct Answer- a high level of commitment, have a
tolerance for ambiguity, are flexible and tenacious.
Which of the following is NOT one of the forces driving the entrepreneurial trend in our
country? - Correct Answer- Shift away from a service economy
T/F Small businesses actually create more jobs than the number of jobs big businesses create.
- Correct Answer- True
The recent number of job losses in large corporations compared to the jobs created by small
business has changed the perception of ________ for launching a new business. - Correct
Answer- risk
T/F David Birch considers "gazelles" those businesses that grow at 20 percent or more per
year and gross at least $100,000 in annual sales. - Correct Answer- True
T/F The 21st century has seen record numbers of entrepreneurs launching businesses on a
global basis. - Correct Answer- True
,T/F Increasing numbers of women are discovering that the best way to break the "glass
ceiling" that prevents them from rising to the top of many organizations is to start their own
companies. - Correct Answer- True
T/F Diversity may be considered a characteristic of entrepreneurs, as they don't fit any
statistical norm. - Correct Answer- True
Which of the following is/are true regarding business plans? - Correct Answer- All of these
The nation's small businesses: - Correct Answer- All of these
T/F There is concern over the future of entrepreneurship because so few high school and
college students want to start their own companies. - Correct Answer- False
T/F Increased entrepreneurial activity is a phenomenon unique to the U.S. - Correct Answer-
False
Small companies that have expanded successfully into foreign markets tend to rely on all but
which of the following strategies? - Correct Answer- Focus on many countries initially.
The majority of small companies are concentrated in the ________ and ________ industries.
- Correct Answer- retail; service
Entrepreneurs that use their skills to create a profitable business that is designed to achieve
social and environmental goals for the common good are known as: - Correct Answer- social
entrepreneurs.
Approximately ________ percent of corporate managers who are "cast off" as companies
downsize become entrepreneurs. - Correct Answer- 20
T/F Surveys show that small business owners believe that, as entrepreneurs, they work
harder, earn more money, and are happier than if they worked for a large company. - Correct
Answer- True
,The only people who ________ are those who never do anything or never attempt anything
new. - Correct Answer- fail
Which of the following statements is not true regarding the diversity of entrepreneurs? -
Correct Answer- Minority-owned businesses now account for approximately 22 percent of all
businesses in the U.S.
T/F Small companies have created at least two-thirds of the net new jobs in the U.S.
economy. - Correct Answer- True
All of the following are characteristics of the typical entrepreneur except: - Correct Answer-
value of money over achievement.
Which of the following statements concerning small businesses and international markets is
false? - Correct Answer- Because exporting is so complex and requires a company to have so
many international experts on staff, exporting is not feasible for small businesses.
Entrepreneurs can increase their chances for success if they: - Correct Answer- All of these
T/F Entrepreneurs are not willing to give up a steady paycheck. - Correct Answer- False
T/F One study conducted by the Global Entrepreneurship Monitor (GEM) reports that nearly
one in eight people in the United states is working to start a business.. - Correct Answer- True
T/F Current competitive conditions favor large companies over smaller ones because of their
flexibility combined with their ability to use their size to achieve efficiency and economies of
scale. - Correct Answer- False
Entrepreneurial couples who work together as co-owners of their business are referred to as: -
Correct Answer- copreneurs.
T/F The opportunity to reap impressive profits is the primary motivation for most
entrepreneurs - Correct Answer- False
, According to the U.S. Small Business Administration, a common delineation of a small
business is one that employs fewer than: - Correct Answer- 100 people.
David Birch, president of the research firm Cognetics, suggests that three percent of small
businesses create approximately ________ percent of new jobs. - Correct Answer- 70
One of the most significant economic developments in recent business history relates to the: -
Correct Answer- entrepreneurial spirit.
Which of the following was not identified as one of the suggestions for small business
success? - Correct Answer- Develop a business plan as you grow your business.
Entrepreneurs who repeatedly start businesses and grow to a sustainable size before striking
out again are known as ________ entrepreneurs. - Correct Answer- serial
An entrepreneur is one who: - Correct Answer- creates a new business concept for the
purpose of achieving profit and growth by assembling the necessary resources to capitalize
on identified opportunities.
It is estimated that ________ percent of new businesses fail within two years, while
________ percent fail within five years. - Correct Answer- 31; 51
T/F Most entrepreneurs have invested the time to develop a sound business plan. - Correct
Answer- False
T/F Large companies create significantly more patents and other forms of innovations per
research and development dollars spent than small firms. - Correct Answer- False
T/F About 20 percent of downsized corporate managers have become entrepreneurs. - Correct
Answer- True
Small companies that operate globally from their inception are referred to as: - Correct
Answer- micromultinationals.
T/F Most family businesses survive to the fourth generation. - Correct Answer- False
UPDATED Exam Questions and
CORRECT Answers
Which of the following statements about women-owned businesses is false? - Correct
Answer- The survival rate of women-owned businesses is much lower than that of U.S.
businesses overall.
T/F About 75 percent of the businesses in the U.S. can be considered "small" businesses. -
Correct Answer- False
Entrepreneurs who start businesses because they cannot find work any other way are: -
Correct Answer- necessity entrepreneurs.
Entrepreneurs typically possess: - Correct Answer- a high level of commitment, have a
tolerance for ambiguity, are flexible and tenacious.
Which of the following is NOT one of the forces driving the entrepreneurial trend in our
country? - Correct Answer- Shift away from a service economy
T/F Small businesses actually create more jobs than the number of jobs big businesses create.
- Correct Answer- True
The recent number of job losses in large corporations compared to the jobs created by small
business has changed the perception of ________ for launching a new business. - Correct
Answer- risk
T/F David Birch considers "gazelles" those businesses that grow at 20 percent or more per
year and gross at least $100,000 in annual sales. - Correct Answer- True
T/F The 21st century has seen record numbers of entrepreneurs launching businesses on a
global basis. - Correct Answer- True
,T/F Increasing numbers of women are discovering that the best way to break the "glass
ceiling" that prevents them from rising to the top of many organizations is to start their own
companies. - Correct Answer- True
T/F Diversity may be considered a characteristic of entrepreneurs, as they don't fit any
statistical norm. - Correct Answer- True
Which of the following is/are true regarding business plans? - Correct Answer- All of these
The nation's small businesses: - Correct Answer- All of these
T/F There is concern over the future of entrepreneurship because so few high school and
college students want to start their own companies. - Correct Answer- False
T/F Increased entrepreneurial activity is a phenomenon unique to the U.S. - Correct Answer-
False
Small companies that have expanded successfully into foreign markets tend to rely on all but
which of the following strategies? - Correct Answer- Focus on many countries initially.
The majority of small companies are concentrated in the ________ and ________ industries.
- Correct Answer- retail; service
Entrepreneurs that use their skills to create a profitable business that is designed to achieve
social and environmental goals for the common good are known as: - Correct Answer- social
entrepreneurs.
Approximately ________ percent of corporate managers who are "cast off" as companies
downsize become entrepreneurs. - Correct Answer- 20
T/F Surveys show that small business owners believe that, as entrepreneurs, they work
harder, earn more money, and are happier than if they worked for a large company. - Correct
Answer- True
,The only people who ________ are those who never do anything or never attempt anything
new. - Correct Answer- fail
Which of the following statements is not true regarding the diversity of entrepreneurs? -
Correct Answer- Minority-owned businesses now account for approximately 22 percent of all
businesses in the U.S.
T/F Small companies have created at least two-thirds of the net new jobs in the U.S.
economy. - Correct Answer- True
All of the following are characteristics of the typical entrepreneur except: - Correct Answer-
value of money over achievement.
Which of the following statements concerning small businesses and international markets is
false? - Correct Answer- Because exporting is so complex and requires a company to have so
many international experts on staff, exporting is not feasible for small businesses.
Entrepreneurs can increase their chances for success if they: - Correct Answer- All of these
T/F Entrepreneurs are not willing to give up a steady paycheck. - Correct Answer- False
T/F One study conducted by the Global Entrepreneurship Monitor (GEM) reports that nearly
one in eight people in the United states is working to start a business.. - Correct Answer- True
T/F Current competitive conditions favor large companies over smaller ones because of their
flexibility combined with their ability to use their size to achieve efficiency and economies of
scale. - Correct Answer- False
Entrepreneurial couples who work together as co-owners of their business are referred to as: -
Correct Answer- copreneurs.
T/F The opportunity to reap impressive profits is the primary motivation for most
entrepreneurs - Correct Answer- False
, According to the U.S. Small Business Administration, a common delineation of a small
business is one that employs fewer than: - Correct Answer- 100 people.
David Birch, president of the research firm Cognetics, suggests that three percent of small
businesses create approximately ________ percent of new jobs. - Correct Answer- 70
One of the most significant economic developments in recent business history relates to the: -
Correct Answer- entrepreneurial spirit.
Which of the following was not identified as one of the suggestions for small business
success? - Correct Answer- Develop a business plan as you grow your business.
Entrepreneurs who repeatedly start businesses and grow to a sustainable size before striking
out again are known as ________ entrepreneurs. - Correct Answer- serial
An entrepreneur is one who: - Correct Answer- creates a new business concept for the
purpose of achieving profit and growth by assembling the necessary resources to capitalize
on identified opportunities.
It is estimated that ________ percent of new businesses fail within two years, while
________ percent fail within five years. - Correct Answer- 31; 51
T/F Most entrepreneurs have invested the time to develop a sound business plan. - Correct
Answer- False
T/F Large companies create significantly more patents and other forms of innovations per
research and development dollars spent than small firms. - Correct Answer- False
T/F About 20 percent of downsized corporate managers have become entrepreneurs. - Correct
Answer- True
Small companies that operate globally from their inception are referred to as: - Correct
Answer- micromultinationals.
T/F Most family businesses survive to the fourth generation. - Correct Answer- False
