Small Business Management Chapter 7 Exam Questions and Answers Latest Update 2024 (100% Pass)

Small Business Management Chapter 7 Exam Questions and Answers Latest Update 2024 (100% Pass) Which of the following increases when beginning a new business rather than buying an existing business? a. frustration b. income c. risk d. profit potential - Answers c. risk No matter what type of business a person is starting, the most important resource is ______. a. capital b. assets c. experience d. time - Answers d. time In the beginning of a new business, the only thing the new business person has is ______. a. vision b. capital c. assets d. a customer base - Answers a. vision Wanda has dreams of opening her own pet shop called "Wanda's Aquarium". Aside from think of a name and how her store will look, she has done very little planning at this very early stage. All she currently has is ______. a. a strategy b. financial means c. an objective d. a vision - Answers d. a vision The risk of failure is greater with ______. a. existing businesses b. franchises c. startups d. existing family-owned businesses - Answers c. startups A business that is more dependent on the services of people than on money and equipment is known as ______. a. a labor-intensive business b. a capital-intensive business c. a service-intensive business d. an asset-intensive business - Answers a. a labor-intensive business A business that depends greatly on equipment and capital for its operations is known as ______. a. a labor-intensive business b. a capital-intensive business c. a service-intensive business d. an asset-intensive business - Answers b. a capital-intensive business Service businesses are more ______. a. labor intensive b. capital intensive c. service intensive d. asset intensive - Answers a. labor intensive Manufacturing businesses are more ______. a. labor intensive b. capital intensive c. service intensive d. asset intensive - Answers a. labor intensive Which of the following is likely to be the most capital intensive? a. a Four Seasons Hotel b. a Ford manufacturing facility c. a Burger King Restaurant d. a medium-sized university - Answers b. a Ford manufacturing facility E-commerce accounts for approximately what percentage of total retail sales? a. less than 1 percent b. 9 percent c. 15 percent d. over 20 percent - Answers b. 9 percent The primary advantages of operating a home-based business are which of the following? a. schedule flexibility and lack of commuting problems b. low overhead and an increase in creativity c. lack of commuting problems and less office expense d. schedule flexibility and low overhead - Answers d. schedule flexibility and low overhead Most fast-growth companies are started by ______. a. sole proprietorships b. partnerships c. corporations d. home-based businesses - Answers b. partnerships A majority of high-growth CEOs had at least ______ years of experience in the industry. a. two b. five c. seven d. ten - Answers d. ten Most high-growth firms are in which industry? a. high-tech