BUSINESS 311 General Business EXAM
questions and CORRECT Answers
Which of the following is an advantage of starting a business from scratch? - CORRECT
ANSWERS The entrepreneur gets to build his or her own business concept and structure.
Which of the following is a drawback of buying an established business? - CORRECT
ANSWERS It may entail inheriting the previous owner's mistakes.
_____ are small segments of a market with fewer competitors than the market as a whole. -
CORRECT ANSWERS Market niches
In the context of various launching options when starting a new business, which of the following
statements is a drawback associated with buying a franchise? - CORRECT ANSWERS It has less
opportunity for creativity.
People who risk their time, money, and other resources to start and manage a business are known
as _____. - CORRECT ANSWERS entrepreneurs
Which of the following statements is true of small businesses? - CORRECT ANSWERS They have
more scope to provide personal customer service than large businesses.
Which of the following statements is true of people with an external locus of control? - CORRECT
ANSWERS They believe that the actions of others can control their fate.
Which of the following is a threat to small businesses? - CORRECT ANSWERS A bigger
regulatory burden compared to large businesses
In the context of funding options for small businesses, which of the following statements is true of
crowdfunding? - CORRECT ANSWERS Its sites are used to funds nonprofits
Which of the following is one of the largest crowdfunding sites in terms of traffic? - CORRECT
ANSWERS Kickstarter.com
, Which of the following is an appealing benefit that entrepreneurs enjoy? - CORRECT
ANSWERS Flexible schedule
_____ is a characteristic that most successful entrepreneurs possess. - CORRECT
ANSWERS Energy
Entrepreneurs who mortgage their homes for the business and stake their reputation on the success
of an unproven product demonstrate: - CORRECT ANSWERS high tolerance of uncertainty
In the context of small businesses and the economy of a country, which of the following factors can
bring down entrepreneurship rates? - CORRECT ANSWERS A high level of employment
protection
Which of the following is a reason why many members of the European Union have low
entrepreneurship rates? - CORRECT ANSWERS They provide strong unemployment insurance
to their citizens.
Which of the following is a characteristic of successful entrepreneurs? - CORRECT
ANSWERS Confidence
_____ are individuals who finance start-up companies with high growth potential in exchange for a
share of ownership. - CORRECT ANSWERS Angel investors
According to the U.S. Small Business Administration (SBA), to officially count as a small business the:
- CORRECT ANSWERS number of employees should range from fewer than 100 to 1,500.
When starting a business from scratch, _____. - CORRECT ANSWERS the logistics can be
challenging
_____ are companies that invest in start-up businesses with high growth potential in exchange for a
share of ownership. - CORRECT ANSWERS Venture capital firms
Entrepreneurs must understand that no conventional lending source, whether private or
government, will: - CORRECT ANSWERS lend all of a start-up's funding.
questions and CORRECT Answers
Which of the following is an advantage of starting a business from scratch? - CORRECT
ANSWERS The entrepreneur gets to build his or her own business concept and structure.
Which of the following is a drawback of buying an established business? - CORRECT
ANSWERS It may entail inheriting the previous owner's mistakes.
_____ are small segments of a market with fewer competitors than the market as a whole. -
CORRECT ANSWERS Market niches
In the context of various launching options when starting a new business, which of the following
statements is a drawback associated with buying a franchise? - CORRECT ANSWERS It has less
opportunity for creativity.
People who risk their time, money, and other resources to start and manage a business are known
as _____. - CORRECT ANSWERS entrepreneurs
Which of the following statements is true of small businesses? - CORRECT ANSWERS They have
more scope to provide personal customer service than large businesses.
Which of the following statements is true of people with an external locus of control? - CORRECT
ANSWERS They believe that the actions of others can control their fate.
Which of the following is a threat to small businesses? - CORRECT ANSWERS A bigger
regulatory burden compared to large businesses
In the context of funding options for small businesses, which of the following statements is true of
crowdfunding? - CORRECT ANSWERS Its sites are used to funds nonprofits
Which of the following is one of the largest crowdfunding sites in terms of traffic? - CORRECT
ANSWERS Kickstarter.com
, Which of the following is an appealing benefit that entrepreneurs enjoy? - CORRECT
ANSWERS Flexible schedule
_____ is a characteristic that most successful entrepreneurs possess. - CORRECT
ANSWERS Energy
Entrepreneurs who mortgage their homes for the business and stake their reputation on the success
of an unproven product demonstrate: - CORRECT ANSWERS high tolerance of uncertainty
In the context of small businesses and the economy of a country, which of the following factors can
bring down entrepreneurship rates? - CORRECT ANSWERS A high level of employment
protection
Which of the following is a reason why many members of the European Union have low
entrepreneurship rates? - CORRECT ANSWERS They provide strong unemployment insurance
to their citizens.
Which of the following is a characteristic of successful entrepreneurs? - CORRECT
ANSWERS Confidence
_____ are individuals who finance start-up companies with high growth potential in exchange for a
share of ownership. - CORRECT ANSWERS Angel investors
According to the U.S. Small Business Administration (SBA), to officially count as a small business the:
- CORRECT ANSWERS number of employees should range from fewer than 100 to 1,500.
When starting a business from scratch, _____. - CORRECT ANSWERS the logistics can be
challenging
_____ are companies that invest in start-up businesses with high growth potential in exchange for a
share of ownership. - CORRECT ANSWERS Venture capital firms
Entrepreneurs must understand that no conventional lending source, whether private or
government, will: - CORRECT ANSWERS lend all of a start-up's funding.
