BUSN 1101 Ch. 3 Exam Questions and Answers Fully Solved Latest Version 2025-2026
Small Business Administration (SBA) - AnswersGovernment agency charged with assisting small
businesses
Small business - AnswersIndependently owned business that has relatively little influence in its market
Most US workers are employed by what type of business? - AnswersSmall business
What are the contributions of small business in terms of its impact on key aspects of the US economic
system? - AnswersJob creation, innovation, and its contributions to big business
Job creation - AnswersSmall businesses have accounted for around 40% of all new jobs in high
technology sectors of the economy in recent years
Innovation - AnswersMajor innovations are as likely to come from small businesses as from big ones
Contributions to big business - AnswersMost of the products made by big businesses are sold to
consumers buy small ones; for example, most dealerships that sell Chevrolets, Toyotas, and Hondas are
independently operated
What are the popular areas of small business enterprise? - AnswersServices, retailing, construction,
wholesaling, finance and insurance, manufacturing, and transportation
Small business - services - AnswersThe service industry ranges from marriage counseling to computer
software, the management consulting to professional dog walking; service providers are the fastest
growing segment of small business partly because they require a few resources
Small business - retailing - AnswersUsually, people who start a small retail business favor specialty
shops, such as big men's clothing or gourmet coffees that let the owners focus limited resources on
narrow or small market segments
Small business - construction - AnswersMany construction jobs are small local projects, such as a home
owner adding a garage or remodeling a room
Small business - wholesaling - AnswersWholesalers buy products in bulk for manufacturers or other
producers and store them in quantities and locations convenient for selling them to retailers
Small business - finance and insurance - AnswersMost of these businesses, such as local state farm
insurance offices, are affiliates of or agents for larger national firms. Small locally owned banks are also
common in smaller communities and rural areas
Small business - manufacturing - AnswersSmall manufacturers sometimes outperform big ones in such
innovation driven industries has electronics, equipment in machine parts, and computer software
Small business - transportation - AnswersMany taxi and limousine companies, charter airplane services,
and tour operators are small businesses
, Entrepreneurs - AnswersBusiness person who excepts both the risks and opportunities involved in
creating and operating a new business venture
Entrepreneurship - AnswersThe process of seeking business opportunities under conditions of risk
Entrepreneurship goals - AnswersMany entrepreneurs seek to launch a new business with the goal of
independence from working for someone else, coupled with some reasonable degree of financial
security; some launch new businesses with the goal of growth and expansion, or to transform their
venture into a large business (new ventures or startups, as they are sometimes called); in other cases,
the goals of an entrepreneur may not always be clear in the early stages of business development
Entrepreneurial characteristics - AnswersResourcefulness and a concern for good and often personal
customer relations;
most of them also have a strong desire to be their own boss;
many express the need to gain control over their lives or build for the family;
excel at discovering new markets/niches (they either transfer a product or service that is well
established in one geographic market to a second market, or sometimes create entire industries;
whereas others may focus on possibilities for failure and balk at gambling everything on a new venture,
most entrepreneurs are so passionate about their ideas and plans that they see little or no likelihood of
failure
Distinctive competencies - AnswersThe aspects of business that the firm performs better than other
competitors; the distinctive competencies of small business usually fall into three areas
1) The ability to identify new niches in established markets
2) The ability to identify new markets
3) The ability to move quickly to take advantage of new opportunities
Established market - Answersmany firms compete according to relatively well-defined criteria
Niche - Answersa segment of market that is not currently being exploited; in general, small
entrepreneurial businesses are better at discovering these niches than are larger organizations
First-mover advantage - Answersan advantage that comes to a firm because it exploits an opportunity
before any other firm does
Business plan - Answersdocument in which the entrepreneur summarizes his or her business strategy
for the proposed new venture and how that strategy will be implemented; in the act of preparing it, the
person is forced to develop the idea and firm up his/her thinking about how to launch it before investing
time and money; should answer the questions:
Small Business Administration (SBA) - AnswersGovernment agency charged with assisting small
businesses
Small business - AnswersIndependently owned business that has relatively little influence in its market
Most US workers are employed by what type of business? - AnswersSmall business
What are the contributions of small business in terms of its impact on key aspects of the US economic
system? - AnswersJob creation, innovation, and its contributions to big business
Job creation - AnswersSmall businesses have accounted for around 40% of all new jobs in high
technology sectors of the economy in recent years
Innovation - AnswersMajor innovations are as likely to come from small businesses as from big ones
Contributions to big business - AnswersMost of the products made by big businesses are sold to
consumers buy small ones; for example, most dealerships that sell Chevrolets, Toyotas, and Hondas are
independently operated
What are the popular areas of small business enterprise? - AnswersServices, retailing, construction,
wholesaling, finance and insurance, manufacturing, and transportation
Small business - services - AnswersThe service industry ranges from marriage counseling to computer
software, the management consulting to professional dog walking; service providers are the fastest
growing segment of small business partly because they require a few resources
Small business - retailing - AnswersUsually, people who start a small retail business favor specialty
shops, such as big men's clothing or gourmet coffees that let the owners focus limited resources on
narrow or small market segments
Small business - construction - AnswersMany construction jobs are small local projects, such as a home
owner adding a garage or remodeling a room
Small business - wholesaling - AnswersWholesalers buy products in bulk for manufacturers or other
producers and store them in quantities and locations convenient for selling them to retailers
Small business - finance and insurance - AnswersMost of these businesses, such as local state farm
insurance offices, are affiliates of or agents for larger national firms. Small locally owned banks are also
common in smaller communities and rural areas
Small business - manufacturing - AnswersSmall manufacturers sometimes outperform big ones in such
innovation driven industries has electronics, equipment in machine parts, and computer software
Small business - transportation - AnswersMany taxi and limousine companies, charter airplane services,
and tour operators are small businesses
, Entrepreneurs - AnswersBusiness person who excepts both the risks and opportunities involved in
creating and operating a new business venture
Entrepreneurship - AnswersThe process of seeking business opportunities under conditions of risk
Entrepreneurship goals - AnswersMany entrepreneurs seek to launch a new business with the goal of
independence from working for someone else, coupled with some reasonable degree of financial
security; some launch new businesses with the goal of growth and expansion, or to transform their
venture into a large business (new ventures or startups, as they are sometimes called); in other cases,
the goals of an entrepreneur may not always be clear in the early stages of business development
Entrepreneurial characteristics - AnswersResourcefulness and a concern for good and often personal
customer relations;
most of them also have a strong desire to be their own boss;
many express the need to gain control over their lives or build for the family;
excel at discovering new markets/niches (they either transfer a product or service that is well
established in one geographic market to a second market, or sometimes create entire industries;
whereas others may focus on possibilities for failure and balk at gambling everything on a new venture,
most entrepreneurs are so passionate about their ideas and plans that they see little or no likelihood of
failure
Distinctive competencies - AnswersThe aspects of business that the firm performs better than other
competitors; the distinctive competencies of small business usually fall into three areas
1) The ability to identify new niches in established markets
2) The ability to identify new markets
3) The ability to move quickly to take advantage of new opportunities
Established market - Answersmany firms compete according to relatively well-defined criteria
Niche - Answersa segment of market that is not currently being exploited; in general, small
entrepreneurial businesses are better at discovering these niches than are larger organizations
First-mover advantage - Answersan advantage that comes to a firm because it exploits an opportunity
before any other firm does
Business plan - Answersdocument in which the entrepreneur summarizes his or her business strategy
for the proposed new venture and how that strategy will be implemented; in the act of preparing it, the
person is forced to develop the idea and firm up his/her thinking about how to launch it before investing
time and money; should answer the questions:
