Small Business
Management Test with
correct answers 2025
Which of the following is a reason for starting a small business? - CORRECT ANSWER-
to satisfy personal objectives
Which of the following is true about the first stage of the typical growth pattern that small
businesses tend to follow? - CORRECT ANSWER-owners manage the business and do
all the work
refers to the process of reducing the number of employees to increase efficiency -
CORRECT ANSWER-rightsizing
With advances in technology, many tasks in the health care industry are now performed
by highly paid and skilled workers. - CORRECT ANSWER-false
Smaller firms tend to - CORRECT ANSWER-keep larger firms competitive
Which of the following is a reason for the drastic changes in small business
management trends? - CORRECT ANSWER-Improvements in communications and
computer technology
,which of the following features must a business have to be classified as small? -
CORRECT ANSWER-Management is independent, and the area of operation is
primarily local.
Which of the following best describes one of the contributions of small businesses -
CORRECT ANSWER-They are sources of new ideas or services that larger businesses
may be unable to provide
Which of the following is a major reason for the increased interest in small business? -
CORRECT ANSWER-There is a growing trend toward self-employment.
Which of the following is the result of the trend in business to become more active
globally? - CORRECT ANSWER-A growing number of large and small U.S. businesses
are or are becoming foreign owned.
A new small business owner's primary motive is usually ____ - CORRECT ANSWER-
independence, that is, freedom from interference or control by superiors
A _____ is any business that is independently owned and operated and is not dominant
in its field of operation. - CORRECT ANSWER-small business
Which of the following is true about the final stage of the typical growth pattern that
small businesses tend to follow? - CORRECT ANSWER-Owners hire managers to run
the firms
Those interested in small business management need to understand what the challenge
of being active globally is and what the rewards may be - CORRECT ANSWER-true
Employees in large workplaces have higher job satisfaction than those in smaller firms.
- CORRECT ANSWER-false
With so much time, money, and energy devoted to the business, small business owners
tend to have more zeal and devotion than do managers of big companies - CORRECT
ANSWER-true
_____ is the fundamental redesign of a business, often resulting in reduction in size and
markets. - CORRECT ANSWER-reinvention
The reality that small businesses train people to become better leaders and managers
and to develop their talents and energies more effectively has led more college
graduates to seek full-time jobs with small businesses - CORRECT ANSWER-true
Which of the following statements is true about small businesses? - CORRECT
ANSWER-The manager usually owns the business
, Which of the following is a problem faced by small businesses today? - CORRECT
ANSWER-Unexpected growth and financing issues
Which of the following statements is true about small businesses? - CORRECT
ANSWER-inadequate management in small businesses creates problems for small
business owners and entrepreneurs
One of the causes of discontinuance or failure is that the amount of time and/or physical
effort demanded of the small business manager was not recognized and/or planned for
- CORRECT ANSWER-true
Mark opened a café in his neighborhood. Soon his café became very popular, and his
revenues started increasing. Steve, the owner of a popular restaurant, saw Mark's
success and asked him to join his restaurant. The financial incentive that Steve offered
Mark was more than what he earned at his café. Moreover, Mark would not have to face
the daily hassles of managing everything on his own. Mark decided to shut down his
café and join the restaurant. This is an example of - CORRECT ANSWER-
discontinuance
The length of service of professional managers (as opposed to owner-managers) in
small businesses tends to be relatively long - CORRECT ANSWER-flase
While the usual incubation period of a business is two to three years, 30 percent of
incubator clients typically graduate each year. - CORRECT ANSWER-true
An entrepreneurial venture is characterized by - CORRECT ANSWER-innovative
strategic practices and/or products
Which of the following statements is true about failure and small businesses? -
CORRECT ANSWER-A discontinuance may result from the apparent advantages of
working for someone else.
Most of the growing industries are dominated by large companies. - CORRECT
ANSWER-false
Which of the following is the main goal of an incubation program? - CORRECT
ANSWER-Produce businesses that are financially viable and freestanding
In formal failures, an owner who cannot succeed voluntarily terminates the business -
CORRECT ANSWER-false
The occupation with the fastest growth overall is ____ - CORRECT ANSWER-health
care
Which of the following refers to an introspective personal analysis that can help a small
business owner determine whether the combination of qualities he or she has will help
Management Test with
correct answers 2025
Which of the following is a reason for starting a small business? - CORRECT ANSWER-
to satisfy personal objectives
Which of the following is true about the first stage of the typical growth pattern that small
businesses tend to follow? - CORRECT ANSWER-owners manage the business and do
all the work
refers to the process of reducing the number of employees to increase efficiency -
CORRECT ANSWER-rightsizing
With advances in technology, many tasks in the health care industry are now performed
by highly paid and skilled workers. - CORRECT ANSWER-false
Smaller firms tend to - CORRECT ANSWER-keep larger firms competitive
Which of the following is a reason for the drastic changes in small business
management trends? - CORRECT ANSWER-Improvements in communications and
computer technology
,which of the following features must a business have to be classified as small? -
CORRECT ANSWER-Management is independent, and the area of operation is
primarily local.
Which of the following best describes one of the contributions of small businesses -
CORRECT ANSWER-They are sources of new ideas or services that larger businesses
may be unable to provide
Which of the following is a major reason for the increased interest in small business? -
CORRECT ANSWER-There is a growing trend toward self-employment.
Which of the following is the result of the trend in business to become more active
globally? - CORRECT ANSWER-A growing number of large and small U.S. businesses
are or are becoming foreign owned.
A new small business owner's primary motive is usually ____ - CORRECT ANSWER-
independence, that is, freedom from interference or control by superiors
A _____ is any business that is independently owned and operated and is not dominant
in its field of operation. - CORRECT ANSWER-small business
Which of the following is true about the final stage of the typical growth pattern that
small businesses tend to follow? - CORRECT ANSWER-Owners hire managers to run
the firms
Those interested in small business management need to understand what the challenge
of being active globally is and what the rewards may be - CORRECT ANSWER-true
Employees in large workplaces have higher job satisfaction than those in smaller firms.
- CORRECT ANSWER-false
With so much time, money, and energy devoted to the business, small business owners
tend to have more zeal and devotion than do managers of big companies - CORRECT
ANSWER-true
_____ is the fundamental redesign of a business, often resulting in reduction in size and
markets. - CORRECT ANSWER-reinvention
The reality that small businesses train people to become better leaders and managers
and to develop their talents and energies more effectively has led more college
graduates to seek full-time jobs with small businesses - CORRECT ANSWER-true
Which of the following statements is true about small businesses? - CORRECT
ANSWER-The manager usually owns the business
, Which of the following is a problem faced by small businesses today? - CORRECT
ANSWER-Unexpected growth and financing issues
Which of the following statements is true about small businesses? - CORRECT
ANSWER-inadequate management in small businesses creates problems for small
business owners and entrepreneurs
One of the causes of discontinuance or failure is that the amount of time and/or physical
effort demanded of the small business manager was not recognized and/or planned for
- CORRECT ANSWER-true
Mark opened a café in his neighborhood. Soon his café became very popular, and his
revenues started increasing. Steve, the owner of a popular restaurant, saw Mark's
success and asked him to join his restaurant. The financial incentive that Steve offered
Mark was more than what he earned at his café. Moreover, Mark would not have to face
the daily hassles of managing everything on his own. Mark decided to shut down his
café and join the restaurant. This is an example of - CORRECT ANSWER-
discontinuance
The length of service of professional managers (as opposed to owner-managers) in
small businesses tends to be relatively long - CORRECT ANSWER-flase
While the usual incubation period of a business is two to three years, 30 percent of
incubator clients typically graduate each year. - CORRECT ANSWER-true
An entrepreneurial venture is characterized by - CORRECT ANSWER-innovative
strategic practices and/or products
Which of the following statements is true about failure and small businesses? -
CORRECT ANSWER-A discontinuance may result from the apparent advantages of
working for someone else.
Most of the growing industries are dominated by large companies. - CORRECT
ANSWER-false
Which of the following is the main goal of an incubation program? - CORRECT
ANSWER-Produce businesses that are financially viable and freestanding
In formal failures, an owner who cannot succeed voluntarily terminates the business -
CORRECT ANSWER-false
The occupation with the fastest growth overall is ____ - CORRECT ANSWER-health
care
Which of the following refers to an introspective personal analysis that can help a small
business owner determine whether the combination of qualities he or she has will help
