BA 1301 EXAM 2 UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Question:
1. Established small businesses are defined as companies
that have been in business at least fifteen years and
employ between 50 to 500 employees.
Answer:
False
Question:
2. All of the following are examples of disadvantages
associated with the ownership of a small business
EXCEPT:
Answer:
being your own boss
Question:
3. Which of the following is NOT a reason why small
business thrives in the United States?
Answer:
guaranteed profits
Question:
4. Once Arnold Patel had decided he wanted to quit
working as a Web designer for a large advertising agency
and go into some kind of business for himself, he did a
self-assessment, which indicated that he had an
entrepreneurial spirit. His next step will be to:
Answer:
find the idea for his business
Question:
5. The _____ is an agency of the federal government that
offers both managerial and financial assistance to small
businesses.
Answer:
Small Business Administration
,Question:
6. Jeff Arnold and Reggie Bradford created WebMD, an
Internet provider of health care information. Early in the
development of this high-growth company, Arnold and
Bradford attracted a group of investors who provided
them with money needed to acquire other Internet
companies with similar missions. The investment group is
called:
Answer:
angel investors
Question:
7. After graduating from college, Joseph Tantillo decided to
start a retail Web site that specializes in personalized
Greek apparel. To fund his Web site, he borrowed money
from his parents (who expect to be repaid with interest).
In other words, he used _____ financing.
Answer:
debt
Question:
8. The difference between the small business owner and the
entrepreneur is that the entrepreneur:
Answer:
assumes the risk of the business
Question:
9. Due to their size large businesses tend to have greater
flexibility than small businesses.
Answer:
False
Question:
10. Kirby Frigo has opened a dog grooming business. Frigo,
like other small business owners, probably will
experience:
Answer:
burdensome government regulations
Question:
11. _____ is at the core of most business failures.
Answer:
Inadequate planning
, Question:
12. Which of the following is a characteristic of the
entrepreneurial personality?
Answer:
Ambitious
Question:
13. An advantage of a small manufacturer over a large
manufacturer is the speed with which new products can
be introduced to the marketplace.
Answer:
True
Question:
14. The two forms of business financing are _____ (borrowed
funds) and _____ (ownership funds).
Answer:
debt; equity
Question:
15. Navim Jain sold stock to investors in order to finance
Sparkart, LLC, a company that markets software to track
how many times music is played and shared among
peers. Jain used _____ financing.
Answer:
equity
Question:
16. One of the advantages of owning a small business is:
Answer:
flexibility
Question:
17. Andy Yocom was looking to start a small business so he
could be his own boss. While golfing one day, he saw
prime advertising space on the flags on the course. He
has decided to call his new venture Invision Golf Group
Inc. What should he include in his business plan?
Answer:
all of the above
CORRECT ANSWERS
Question:
1. Established small businesses are defined as companies
that have been in business at least fifteen years and
employ between 50 to 500 employees.
Answer:
False
Question:
2. All of the following are examples of disadvantages
associated with the ownership of a small business
EXCEPT:
Answer:
being your own boss
Question:
3. Which of the following is NOT a reason why small
business thrives in the United States?
Answer:
guaranteed profits
Question:
4. Once Arnold Patel had decided he wanted to quit
working as a Web designer for a large advertising agency
and go into some kind of business for himself, he did a
self-assessment, which indicated that he had an
entrepreneurial spirit. His next step will be to:
Answer:
find the idea for his business
Question:
5. The _____ is an agency of the federal government that
offers both managerial and financial assistance to small
businesses.
Answer:
Small Business Administration
,Question:
6. Jeff Arnold and Reggie Bradford created WebMD, an
Internet provider of health care information. Early in the
development of this high-growth company, Arnold and
Bradford attracted a group of investors who provided
them with money needed to acquire other Internet
companies with similar missions. The investment group is
called:
Answer:
angel investors
Question:
7. After graduating from college, Joseph Tantillo decided to
start a retail Web site that specializes in personalized
Greek apparel. To fund his Web site, he borrowed money
from his parents (who expect to be repaid with interest).
In other words, he used _____ financing.
Answer:
debt
Question:
8. The difference between the small business owner and the
entrepreneur is that the entrepreneur:
Answer:
assumes the risk of the business
Question:
9. Due to their size large businesses tend to have greater
flexibility than small businesses.
Answer:
False
Question:
10. Kirby Frigo has opened a dog grooming business. Frigo,
like other small business owners, probably will
experience:
Answer:
burdensome government regulations
Question:
11. _____ is at the core of most business failures.
Answer:
Inadequate planning
, Question:
12. Which of the following is a characteristic of the
entrepreneurial personality?
Answer:
Ambitious
Question:
13. An advantage of a small manufacturer over a large
manufacturer is the speed with which new products can
be introduced to the marketplace.
Answer:
True
Question:
14. The two forms of business financing are _____ (borrowed
funds) and _____ (ownership funds).
Answer:
debt; equity
Question:
15. Navim Jain sold stock to investors in order to finance
Sparkart, LLC, a company that markets software to track
how many times music is played and shared among
peers. Jain used _____ financing.
Answer:
equity
Question:
16. One of the advantages of owning a small business is:
Answer:
flexibility
Question:
17. Andy Yocom was looking to start a small business so he
could be his own boss. While golfing one day, he saw
prime advertising space on the flags on the course. He
has decided to call his new venture Invision Golf Group
Inc. What should he include in his business plan?
Answer:
all of the above
