Ch. 5 Concept Checks Exam Questions
and Complete Solutions Graded A+
e. Small businesses - Answer: ______ are independently owned and operated, not dominant in their
field of operation, and meet certain standards of size in regard to number of employees or average
annual sales.
a. Open corporations
b. Joint ventures
c. Syndicates
d. Franchises
e. Small businesses
c. low initial; skills or knowledge - Answer: Knowledgeable entrepreneurs choose areas with which they
are familiar. These are most often the more established industries that require only a ___________
investment and some special ______________.
a. high initial; industrial tools
b. mid-sized initial; on-the-job training
c. low initial; skills or knowledge
d. low initial; on-the-job training
b. Distribution - Answer: Which category of industries includes retailing, wholesaling, transportation,
and communications—industries concerned with the movement of goods from producers to
consumers?
a. Production
b. Distribution
c. Service
d. Technological
e. a reclusive nature. - Answer: All of the following are factors that encourage certain people to start
new businesses, except:
a. a willingness to find and accept a challenge.
, b. a desire to determine one's own destiny.
c. a family member(s) who has had been in business.
d. independence.
e. a reclusive nature.
b. Capital, management, and planning - Answer: What are the three key ingredients in small business
survival as well as failure?
a. Marketing, financing, and planning
b. Capital, management, and planning
c. Planning, record keeping, and marketing
d. Human resource development, record keeping, and planning
d. how small business fuels job creation and innovation. - Answer: John had a good idea for a candy
manufacturing business. He decided that he wanted to take the risk, become an entrepreneur, and start
his own business. Now, ten years later, John's candy company has 20 locations all over the United States
and employs nearly 1,000 people. This example illustrates:
a. that small businesses have little effect on the economy.
b. that there is a large demand for candy in the United States.
c. that entrepreneurs are of superior intelligence.
d. how small business fuels job creation and innovation.
e. the risks associated with entrepreneurship.
b. more than half - Answer: According to the U.S. Office of Management and Budget, __________ of the
major technological advances of the 20th century originated with individual inventors and small
companies.
a. less than 10%
b. more than half
c. nearly all
d. about one-fourth
c. Easy to raise capital - Answer: Which of the following is NOT an advantage of smallness in business?
and Complete Solutions Graded A+
e. Small businesses - Answer: ______ are independently owned and operated, not dominant in their
field of operation, and meet certain standards of size in regard to number of employees or average
annual sales.
a. Open corporations
b. Joint ventures
c. Syndicates
d. Franchises
e. Small businesses
c. low initial; skills or knowledge - Answer: Knowledgeable entrepreneurs choose areas with which they
are familiar. These are most often the more established industries that require only a ___________
investment and some special ______________.
a. high initial; industrial tools
b. mid-sized initial; on-the-job training
c. low initial; skills or knowledge
d. low initial; on-the-job training
b. Distribution - Answer: Which category of industries includes retailing, wholesaling, transportation,
and communications—industries concerned with the movement of goods from producers to
consumers?
a. Production
b. Distribution
c. Service
d. Technological
e. a reclusive nature. - Answer: All of the following are factors that encourage certain people to start
new businesses, except:
a. a willingness to find and accept a challenge.
, b. a desire to determine one's own destiny.
c. a family member(s) who has had been in business.
d. independence.
e. a reclusive nature.
b. Capital, management, and planning - Answer: What are the three key ingredients in small business
survival as well as failure?
a. Marketing, financing, and planning
b. Capital, management, and planning
c. Planning, record keeping, and marketing
d. Human resource development, record keeping, and planning
d. how small business fuels job creation and innovation. - Answer: John had a good idea for a candy
manufacturing business. He decided that he wanted to take the risk, become an entrepreneur, and start
his own business. Now, ten years later, John's candy company has 20 locations all over the United States
and employs nearly 1,000 people. This example illustrates:
a. that small businesses have little effect on the economy.
b. that there is a large demand for candy in the United States.
c. that entrepreneurs are of superior intelligence.
d. how small business fuels job creation and innovation.
e. the risks associated with entrepreneurship.
b. more than half - Answer: According to the U.S. Office of Management and Budget, __________ of the
major technological advances of the 20th century originated with individual inventors and small
companies.
a. less than 10%
b. more than half
c. nearly all
d. about one-fourth
c. Easy to raise capital - Answer: Which of the following is NOT an advantage of smallness in business?
