ACCESS Test Bank for Entrepreneurial Small Business 7th Edition Katz
Entrepreneurial Small Business Edition 7 by Katz
CORRECT ANSWERS ARE 6) Crowdsourcing is funding a business
LOCATED IN THE 2ND HALF OF online through the collective
involvement of others who provide
THIS DOC.
donations, loans, or investments.
TRUE/FALSE - Write 'T' if the statement
⊚ true
is true and 'F' if the statement is false.
⊚ false
1) The majority of new firms go through
similar start-up processes with those
7) High-performing small businesses start
most likely to be successful following a
with the intent of eventually going
four-step process: finance, check, plan,
public, following the pattern of growth
and do.
and operations of a big business.
⊚ true
⊚ true
⊚ false
⊚ false
2) Kevin wanted to start his own business
8) Lifestyle or part-time firms typically
of ferrying pets to the vet or groomers
provide enough profit or salary to
for their owners but he was advised to
supplement an income but usually not
perform a feasibility analysis before
enough on which to live.
moving forward. Kevin is on the third
⊚ true
step of the entrepreneurial process: plan.
⊚ false
⊚ true
⊚ false
9) If you don't succeed the first time, try,
try again. This is called the strategy of
3) In order to make profits from a small
self-efficacy.
business, the company needs to make an
⊚ true
actual product.
⊚ false
⊚ true
⊚ false
10) High-growth ventures are also known as
main street businesses.
4) Truly entrepreneurial businesses are
⊚ true
characterized by imitativeness in their
⊚ false
products, services, or business models.
⊚ true
11) Small businesses employ about 10
⊚ false
percent of all Americans.
⊚ true
5) Self-employed persons are not referred
⊚ false
to as entrepreneurs.
⊚ true
⊚ false
Version 1 1
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,ACCESS Test Bank for Entrepreneurial Small Business 7th Edition Katz ACCESS Test Bank for Entrepreneurial Small Business 7th Edition Katz
Entrepreneurial Small Business Edition 7 by Katz Entrepreneurial Small Business Edition 7 by Katz
12) Big business often has trouble with 18) One of the seven key strategies of the 23) Truly entrepreneurial businesses are 27) A business owned by an individual or a
innovations, but small, new, businesses entrepreneurial way involves characterized by small group is referred to as a(n)
are more likely to see new revenues in effectuation or an approach used to A) the franchise they are associated A) corporate chain.
innovations. create alternatives in uncertain with. B) conglomerate.
⊚ true environments. B) the degree to which their C) concern.
⊚ false ⊚ true products are imitative. D) independent small business.
⊚ false C) the novelty in their products,
13) Using low-cost or free techniques to services, or business models. 28) A business run by the individual who
minimize cost of doing business is 19) High-growth ventures and big businesses D) the ease with which their product owns it is referred to as a(n)
referred to as bootstrapping. generally do not succeed without small is accepted by the buyers. A) franchise.
⊚ true businesses offering supporting services. B) owner-managed firm.
⊚ false ⊚ true 24) Small businesses are usually C) social venture.
⊚ false A) imitative in nature. D) unicorn.
14) Ninety percent of all new businesses fail B) characterized by the novelty of
within two years. 20) Small businesses are important to the their products. 29) Which of the following statements is
⊚ true U.S. economy but do very little for local C) the same as high-growth true of a small business?
⊚ false communities. ventures. A) The preferred funding source for
⊚ true D) not affected by market a small business is other people’s
15) The most frequently occurring element ⊚ false fluctuations. money.
of the BRIE model is intention. B) When facing bankruptcy, a small
⊚ true 21) Taking products and services made in 25) Which of the following statements is business is likely to sell more
⊚ false your home country and selling them in true of a franchise? rather than cut costs.
other countries is called importing. A) Franchise is the international C) Small businesses consider sales
16) In the BRIE model, exchange refers to ⊚ true term for all small businesses. as more important than
moving resources, goods, or services to ⊚ false B) A franchise is a type of novelty marketing.
others, in exchange for money or other organization. D) For a small business, the focus is
resources. MULTIPLE CHOICE - Choose the one C) A franchise is an organization more on effectiveness than on
⊚ true alternative that best completes the that provides loans to start small efficiency.
⊚ false statement or answers the question. businesses.
22) The__________ is a U.S. government D) A franchise is a prepackaged
17) The disadvantage of the BRIE model is agency that helps people start a business business bought, rented, or leased
that it does not mention the management and also provides them support and from a company.
of resources. advocacy.
⊚ true A) Small Business Administration 26) A person who becomes an owner by
⊚ false B) U.S. Department of Business inheriting or getting a stake in a family
Development business is known as
C) U.S. Department of Commerce A) a founder.
D) U.S. Entrepreneurial B) a franchisor.
Administration C) an heir.
D) a serial entrepreneur.
Version 1 2 Version 1 3
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,ACCESS Test Bank for Entrepreneurial Small Business 7th Edition Katz ACCESS Test Bank for Entrepreneurial Small Business 7th Edition Katz
Entrepreneurial Small Business Edition 7 by Katz Entrepreneurial Small Business Edition 7 by Katz
30) Small businesses differ from high- 33) Which of the following statements is 35) Which of the following is a difference 37) Which of the following describes the
growth ventures in that in small true of a high-growth venture? between a small business and a high- significance of an overall growth
businesses A) A high-growth venture considers growth venture? strategy?
A) the focus is on effectiveness sales as more important than A) For a small business, the A) It represents a driver of the
rather than efficiency. marketing. preferred funding source is other variety of entrepreneurship.
B) the preferred source of funding is B) The meta-strategy for a high- people’s money, whereas for a B) It allows for one small business
the owner’s own money rather growth venture is novelty. high-growth venture, it is the enterprise to incorporate in
than other people’s money. C) A high-growth venture focuses owner’s own money. multiple states at the same time.
C) the delegation of responsibilities more on efficiency than on B) For a small business, the personal C) It provides the owner a stake in
is easy and necessary rather than effectiveness. control preference is to involve the family business.
difficult. D) The loss of control is what limits others, whereas a high-growth D) It helps buyers to get familiar
D) the meta-strategy is for novelty growth in a high-growth venture. venture prefers to retain with new products.
rather than imitation. autonomy.
34) When a person believes they can achieve C) A small business focuses on 38) Which of the following is a
31) High-growth ventures differ from small a goal, they are exhibiting effectiveness, whereas a high- characteristic of a lifestyle firm?
businesses in that in high-growth A) effectuation. growth venture focuses on A) starts small, rapidly grows to a
ventures B) perseverance. efficiency. big business
A) the focus is on efficiency rather C) overall growth strategy. D) A small business grows when B) represents about 20 percent of all
than effectiveness. D) self-efficacy. necessary, whereas a high- businesses
B) the meta-strategy is imitation growth venture grows when C) typically has sales of $25,000 a
rather than novelty. possible. year or less
C) the human resource system is D) aims for growth rates of 25
personalized rather than 36) High-growth ventures percent or more a year
professionalized. A) use imitation as their meta-
D) the limitation of growth is strategy. 39) Which of the following is true of a part-
dictated by market response B) start small but are intended to time firm?
rather than the owner’s loss of grow rapidly. A) starts small and stays small
control. C) grow only when necessary. B) has continuous growth
D) focus on efficiency. C) success is defined by annual
32) According to the text, the definition of profits of $1,000,000
a__________ is one that involves 1–50 D) aims for growth rates of 25
people and has its owner managing the percent or more a year
business on a day-to-day basis.
A) franchise
B) small business
C) unicorn
D) high-growth venture
Version 1 4 Version 1 5
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, ACCESS Test Bank for Entrepreneurial Small Business 7th Edition Katz ACCESS Test Bank for Entrepreneurial Small Business 7th Edition Katz
Entrepreneurial Small Business Edition 7 by Katz Entrepreneurial Small Business Edition 7 by Katz
40) The text defines an entrepreneur as 45) Which of the following actions is 48) Which of the following is true of a high- 52) A business in which you sell items in
A) a person who purchases an performed during the plan step of the performing small business? person or online, but you hold no
existing business. entrepreneurial process? A) It often grows through multiple inventory, is called
B) working for yourself. A) feasibility analysis locations. A) bootstrapping.
C) characterized by being different B) customer development processes B) It aims to achieve growth rates of B) self-efficacy.
or new. C) pilot testing 25 percent or more a year. C) the corridor principle.
D) a person who owns or starts an D) revising your planning approach C) It has sales of more than $1 D) drop-shipping.
organization, such as a business. million.
46) Sven opened his own business servicing D) It has low levels of 53) Lendingclub.com or Upstart.com
41) Which of the following categories does private swimming pools. Sven worked professionalization. provide alternatives to traditional banks
the majority of small businesses fall hard to build up his customer base, often with their platforms which are used in
under? performing services on last-minute 49) At the tip of the high-growth ventures A) bootstrapping.
A) high-growth ventures notice, or even on holidays and are firms called__________, like Uber B) drop-shipping.
B) high-performing small businesses weekends. Now, Sven has a comfortable and AirBnB with valuations of $1 billion C) P2P lending.
C) lifetime/part-time firms number of routine services he provides or more. D) crowdfunding.
D) traditional small business for his customers and his business is A) green entrepreneurs
profitable enough to support himself and B) main street businesses 54) Which of the following statements is
42) __________ are the smallest full-time his family. Which type of business does C) unicorns true concerning the myth that there is not
business. Sven likely own? D) necessity-driven entrepreneurs enough financing available to start a
A) High-performing small A) a lifestyle business small business?
businesses B) a traditional small business 50) Lifestyle firms, traditional small A) Crowdsourcing sites like
B) Traditional small businesses C) a high-performing small business businesses, and high-performing small Kickstarter.com are popular ways
C) High-growth ventures D) a unicorn businesses are often called to raise financing.
D) Lifestyle businesses A) main street businesses. B) Bootstrapping is one way to get
47) __________ tend to level off after B) Wall Street businesses. started with very little cash as
43) Which of the following answer options success defined by sales of between C) high-growth ventures. you refer sales to a third party
is not one of the four generic overall $100,000 and $1,000,000, depending on D) universal businesses. who handles the shipping and the
growth strategies? the industry. financial transactions.
A) a part-time firm A) Lifestyle firms 51) Julio’s friends and family provided the C) Bank financing has been falling,
B) a traditional small business B) Traditional small businesses cash to get his car detailing business but family funding is rising.
C) a franchise C) High-performing small started. Each person’s contribution was D) Almost 40 percent of solo
D) a high-performing small business businesses treated as a loan, with interest, which entrepreneurs start their business
D) High-growth ventures Julio repaid on a monthly basis as his with less than $5,000.
44) Which of the following terms is not one business expanded. This is an example
of the four steps in the successful of
entrepreneurial process? A) bootstrapping.
A) seek B) P2P lending.
B) do C) crowdfunding.
C) plan D) CSI entrepreneurship.
D) check
Version 1 6 Version 1 7
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Entrepreneurial Small Business Edition 7 by Katz
CORRECT ANSWERS ARE 6) Crowdsourcing is funding a business
LOCATED IN THE 2ND HALF OF online through the collective
involvement of others who provide
THIS DOC.
donations, loans, or investments.
TRUE/FALSE - Write 'T' if the statement
⊚ true
is true and 'F' if the statement is false.
⊚ false
1) The majority of new firms go through
similar start-up processes with those
7) High-performing small businesses start
most likely to be successful following a
with the intent of eventually going
four-step process: finance, check, plan,
public, following the pattern of growth
and do.
and operations of a big business.
⊚ true
⊚ true
⊚ false
⊚ false
2) Kevin wanted to start his own business
8) Lifestyle or part-time firms typically
of ferrying pets to the vet or groomers
provide enough profit or salary to
for their owners but he was advised to
supplement an income but usually not
perform a feasibility analysis before
enough on which to live.
moving forward. Kevin is on the third
⊚ true
step of the entrepreneurial process: plan.
⊚ false
⊚ true
⊚ false
9) If you don't succeed the first time, try,
try again. This is called the strategy of
3) In order to make profits from a small
self-efficacy.
business, the company needs to make an
⊚ true
actual product.
⊚ false
⊚ true
⊚ false
10) High-growth ventures are also known as
main street businesses.
4) Truly entrepreneurial businesses are
⊚ true
characterized by imitativeness in their
⊚ false
products, services, or business models.
⊚ true
11) Small businesses employ about 10
⊚ false
percent of all Americans.
⊚ true
5) Self-employed persons are not referred
⊚ false
to as entrepreneurs.
⊚ true
⊚ false
Version 1 1
mynursytest.store
,ACCESS Test Bank for Entrepreneurial Small Business 7th Edition Katz ACCESS Test Bank for Entrepreneurial Small Business 7th Edition Katz
Entrepreneurial Small Business Edition 7 by Katz Entrepreneurial Small Business Edition 7 by Katz
12) Big business often has trouble with 18) One of the seven key strategies of the 23) Truly entrepreneurial businesses are 27) A business owned by an individual or a
innovations, but small, new, businesses entrepreneurial way involves characterized by small group is referred to as a(n)
are more likely to see new revenues in effectuation or an approach used to A) the franchise they are associated A) corporate chain.
innovations. create alternatives in uncertain with. B) conglomerate.
⊚ true environments. B) the degree to which their C) concern.
⊚ false ⊚ true products are imitative. D) independent small business.
⊚ false C) the novelty in their products,
13) Using low-cost or free techniques to services, or business models. 28) A business run by the individual who
minimize cost of doing business is 19) High-growth ventures and big businesses D) the ease with which their product owns it is referred to as a(n)
referred to as bootstrapping. generally do not succeed without small is accepted by the buyers. A) franchise.
⊚ true businesses offering supporting services. B) owner-managed firm.
⊚ false ⊚ true 24) Small businesses are usually C) social venture.
⊚ false A) imitative in nature. D) unicorn.
14) Ninety percent of all new businesses fail B) characterized by the novelty of
within two years. 20) Small businesses are important to the their products. 29) Which of the following statements is
⊚ true U.S. economy but do very little for local C) the same as high-growth true of a small business?
⊚ false communities. ventures. A) The preferred funding source for
⊚ true D) not affected by market a small business is other people’s
15) The most frequently occurring element ⊚ false fluctuations. money.
of the BRIE model is intention. B) When facing bankruptcy, a small
⊚ true 21) Taking products and services made in 25) Which of the following statements is business is likely to sell more
⊚ false your home country and selling them in true of a franchise? rather than cut costs.
other countries is called importing. A) Franchise is the international C) Small businesses consider sales
16) In the BRIE model, exchange refers to ⊚ true term for all small businesses. as more important than
moving resources, goods, or services to ⊚ false B) A franchise is a type of novelty marketing.
others, in exchange for money or other organization. D) For a small business, the focus is
resources. MULTIPLE CHOICE - Choose the one C) A franchise is an organization more on effectiveness than on
⊚ true alternative that best completes the that provides loans to start small efficiency.
⊚ false statement or answers the question. businesses.
22) The__________ is a U.S. government D) A franchise is a prepackaged
17) The disadvantage of the BRIE model is agency that helps people start a business business bought, rented, or leased
that it does not mention the management and also provides them support and from a company.
of resources. advocacy.
⊚ true A) Small Business Administration 26) A person who becomes an owner by
⊚ false B) U.S. Department of Business inheriting or getting a stake in a family
Development business is known as
C) U.S. Department of Commerce A) a founder.
D) U.S. Entrepreneurial B) a franchisor.
Administration C) an heir.
D) a serial entrepreneur.
Version 1 2 Version 1 3
mynursytest.store mynursytest.store
,ACCESS Test Bank for Entrepreneurial Small Business 7th Edition Katz ACCESS Test Bank for Entrepreneurial Small Business 7th Edition Katz
Entrepreneurial Small Business Edition 7 by Katz Entrepreneurial Small Business Edition 7 by Katz
30) Small businesses differ from high- 33) Which of the following statements is 35) Which of the following is a difference 37) Which of the following describes the
growth ventures in that in small true of a high-growth venture? between a small business and a high- significance of an overall growth
businesses A) A high-growth venture considers growth venture? strategy?
A) the focus is on effectiveness sales as more important than A) For a small business, the A) It represents a driver of the
rather than efficiency. marketing. preferred funding source is other variety of entrepreneurship.
B) the preferred source of funding is B) The meta-strategy for a high- people’s money, whereas for a B) It allows for one small business
the owner’s own money rather growth venture is novelty. high-growth venture, it is the enterprise to incorporate in
than other people’s money. C) A high-growth venture focuses owner’s own money. multiple states at the same time.
C) the delegation of responsibilities more on efficiency than on B) For a small business, the personal C) It provides the owner a stake in
is easy and necessary rather than effectiveness. control preference is to involve the family business.
difficult. D) The loss of control is what limits others, whereas a high-growth D) It helps buyers to get familiar
D) the meta-strategy is for novelty growth in a high-growth venture. venture prefers to retain with new products.
rather than imitation. autonomy.
34) When a person believes they can achieve C) A small business focuses on 38) Which of the following is a
31) High-growth ventures differ from small a goal, they are exhibiting effectiveness, whereas a high- characteristic of a lifestyle firm?
businesses in that in high-growth A) effectuation. growth venture focuses on A) starts small, rapidly grows to a
ventures B) perseverance. efficiency. big business
A) the focus is on efficiency rather C) overall growth strategy. D) A small business grows when B) represents about 20 percent of all
than effectiveness. D) self-efficacy. necessary, whereas a high- businesses
B) the meta-strategy is imitation growth venture grows when C) typically has sales of $25,000 a
rather than novelty. possible. year or less
C) the human resource system is D) aims for growth rates of 25
personalized rather than 36) High-growth ventures percent or more a year
professionalized. A) use imitation as their meta-
D) the limitation of growth is strategy. 39) Which of the following is true of a part-
dictated by market response B) start small but are intended to time firm?
rather than the owner’s loss of grow rapidly. A) starts small and stays small
control. C) grow only when necessary. B) has continuous growth
D) focus on efficiency. C) success is defined by annual
32) According to the text, the definition of profits of $1,000,000
a__________ is one that involves 1–50 D) aims for growth rates of 25
people and has its owner managing the percent or more a year
business on a day-to-day basis.
A) franchise
B) small business
C) unicorn
D) high-growth venture
Version 1 4 Version 1 5
mynursytest.store mynursytest.store
, ACCESS Test Bank for Entrepreneurial Small Business 7th Edition Katz ACCESS Test Bank for Entrepreneurial Small Business 7th Edition Katz
Entrepreneurial Small Business Edition 7 by Katz Entrepreneurial Small Business Edition 7 by Katz
40) The text defines an entrepreneur as 45) Which of the following actions is 48) Which of the following is true of a high- 52) A business in which you sell items in
A) a person who purchases an performed during the plan step of the performing small business? person or online, but you hold no
existing business. entrepreneurial process? A) It often grows through multiple inventory, is called
B) working for yourself. A) feasibility analysis locations. A) bootstrapping.
C) characterized by being different B) customer development processes B) It aims to achieve growth rates of B) self-efficacy.
or new. C) pilot testing 25 percent or more a year. C) the corridor principle.
D) a person who owns or starts an D) revising your planning approach C) It has sales of more than $1 D) drop-shipping.
organization, such as a business. million.
46) Sven opened his own business servicing D) It has low levels of 53) Lendingclub.com or Upstart.com
41) Which of the following categories does private swimming pools. Sven worked professionalization. provide alternatives to traditional banks
the majority of small businesses fall hard to build up his customer base, often with their platforms which are used in
under? performing services on last-minute 49) At the tip of the high-growth ventures A) bootstrapping.
A) high-growth ventures notice, or even on holidays and are firms called__________, like Uber B) drop-shipping.
B) high-performing small businesses weekends. Now, Sven has a comfortable and AirBnB with valuations of $1 billion C) P2P lending.
C) lifetime/part-time firms number of routine services he provides or more. D) crowdfunding.
D) traditional small business for his customers and his business is A) green entrepreneurs
profitable enough to support himself and B) main street businesses 54) Which of the following statements is
42) __________ are the smallest full-time his family. Which type of business does C) unicorns true concerning the myth that there is not
business. Sven likely own? D) necessity-driven entrepreneurs enough financing available to start a
A) High-performing small A) a lifestyle business small business?
businesses B) a traditional small business 50) Lifestyle firms, traditional small A) Crowdsourcing sites like
B) Traditional small businesses C) a high-performing small business businesses, and high-performing small Kickstarter.com are popular ways
C) High-growth ventures D) a unicorn businesses are often called to raise financing.
D) Lifestyle businesses A) main street businesses. B) Bootstrapping is one way to get
47) __________ tend to level off after B) Wall Street businesses. started with very little cash as
43) Which of the following answer options success defined by sales of between C) high-growth ventures. you refer sales to a third party
is not one of the four generic overall $100,000 and $1,000,000, depending on D) universal businesses. who handles the shipping and the
growth strategies? the industry. financial transactions.
A) a part-time firm A) Lifestyle firms 51) Julio’s friends and family provided the C) Bank financing has been falling,
B) a traditional small business B) Traditional small businesses cash to get his car detailing business but family funding is rising.
C) a franchise C) High-performing small started. Each person’s contribution was D) Almost 40 percent of solo
D) a high-performing small business businesses treated as a loan, with interest, which entrepreneurs start their business
D) High-growth ventures Julio repaid on a monthly basis as his with less than $5,000.
44) Which of the following terms is not one business expanded. This is an example
of the four steps in the successful of
entrepreneurial process? A) bootstrapping.
A) seek B) P2P lending.
B) do C) crowdfunding.
C) plan D) CSI entrepreneurship.
D) check
Version 1 6 Version 1 7
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