GB 370 GENTRY FINAL PAPER 2025/2026 QUESTIONS AND
ANSWERS GRADED A+
✔✔Marc Adler is the owner of Macquarium, a multimillion-dollar communications
company that does everything from video productions to creating Web sites to public
relations campaigns. Macquarium has done this sort of work for BellSouth and SnapOn
Tools. Even though these companies could have prepared their videos and created
their Web sites in-house, these tasks were: - ✔✔outsourced
✔✔In buying an existing business, the prospective buyer should ask questions about
the operation of the business. Which of the following would be an inappropriate question
to ask? - ✔✔What are you going to do with the down payment?
✔✔Entrepreneurs, as a general group, dislike risk taking. - ✔✔False
✔✔The person who takes the risk of starting and managing a business to make a profit
is called a(n): - ✔✔entrepreneur
✔✔Once Arnold Patel had decided he wanted to quit working as a Web designer for a
large advertising agency and go into some kind of business for himself, he did a self-
assessment, which indicated that he had an entrepreneurial spirit. His next step will be
to: - ✔✔find the idea for his business
✔✔Due to their size large businesses tend to have greater flexibility than small
businesses. - ✔✔false
✔✔Who provides the start-up financing for the majority of new small businesses? -
✔✔the business owner and his or her family and friends
✔✔The first step in starting your own business is the creation of a unique marketable
idea. - ✔✔false
✔✔The difference between small business owners and entrepreneurs is that small
business owners: - ✔✔accept the status quo and take a short-term view of the future
are accurately described by all of the above
✔✔____ is financing obtained from investment firms that specialize in financing small,
high-growth companies and receive an ownership interest and a voice in management
in return for their money. - ✔✔venture capital
✔✔Kathy Elliot has decided that she will start an Internet company to sell reliable used
cars to customers nationwide. She has decided to use the sole proprietorship business
,format. Elliot's next step is to write a formal _____ before she applies for a business
loan. - ✔✔business plan
✔✔Andy Yocom saw prime advertising space on the flags on the golf course. He
reasoned that any marketing messages would get prominent attention if they were
placed on the flags since golfers focus on them when they take their shots. As a result
Yocom used his own initiative and money to start Invision Golf Group Inc. Yocom is an
example of a(n): - ✔✔entrepreneur
✔✔An entrepreneur is a person who _____ a business. - ✔✔owns and operates
✔✔Entrepreneurs are people with vision, drive, and creativity, who are willing to take
the risk of starting and managing a business to make a profit. - ✔✔true
✔✔In the past few years, the federal government has cut back burdensome government
regulations and paperwork to the point that they are almost non-existent for small
business owners. - ✔✔false
✔✔Hawaiian-born Jon P. Farmer is the founder of Kolopua Hawaii LLC, a company that
markets Pure Hawaiian Air. Bottles of Pure Hawaiian Air contain air that smells like the
floral bouquet that greets tourists as they get off the plane in Hawaii. Which of the
following federal agencies should Farmer contact if he needs management assistance?
- ✔✔SBA
✔✔The most common use of a business plan is to persuade lenders and investors to
finance the venture - ✔✔true
✔✔Unlike large corporations, sole proprietorships do not need a business plan. -
✔✔false
✔✔Established small businesses are defined as companies that have been in business
at least fifteen years and employ between 50 to 500 employees. - ✔✔false
✔✔_____ financing is a form of business financing consisting of borrowed funds that
must be repaid with interest over a stated time period. - ✔✔debt
✔✔Entrepreneurs typically are innovators who start companies to pursue their ideas for
a new product or service. - ✔✔true
✔✔Which of the following is NOT one of the advantages of owning a small business? -
✔✔avoidance of taxes
, ✔✔Mark Ghermizian had quit his job and was looking to start a small business so he
could be his own boss. When he read that people spend up to fifteen minutes every day
staring at a bathroom stall door, he decided he would find advertisers who wanted to
pay to have their advertising messages on bathroom stall doors. Since he has his idea,
Ghermizian's next step is to: - ✔✔choose a form of business organization
✔✔Jill Hansom borrowed $40,000 from a credit union to start a company that makes
and sells peach salsa. Hansom used _____ financing. - ✔✔debt
✔✔_____ financing is a form of financing consisting of funds raised through the sale of
stock in a business. - ✔✔equity
✔✔One way to ease the burden of managing a business is to: - ✔✔hire outside
consultants
✔✔All of the following are characteristics of an entrepreneurial personality EXCEPT: -
✔✔the willingness to be a follower rather than a leader
✔✔Which of the following is a reason why small business thrives in the United States? -
✔✔rapidly changing technology
✔✔A well-written business plan should contain: - ✔✔all of the above
✔✔A _____ is a formal written statement that describes in detail the idea for a new
business and how it will be carried out. - ✔✔business plan
✔✔Once the business plan is finished, the next step is to: - ✔✔names of employees
✔✔Navim Jain sold stock to investors in order to finance Sparkart, LLC, a company that
markets software to track how many times music is played and shared among peers.
Jain used _____ financing. - ✔✔equity
✔✔An organization's _____ is its general purpose or reason for existence. - ✔✔mission
✔✔Asan Linhoud has a major decision to make regarding whether to create a new
sales territory or simply add customers to existing territories. He asks for suggestions
from his sales reps but will make his own decision. This style of leadership is called: -
✔✔consultative
✔✔Managers must act in interpersonal, informational, and decisional roles. - ✔✔true
✔✔The first step in setting up a control process is to measure performances - ✔✔false
ANSWERS GRADED A+
✔✔Marc Adler is the owner of Macquarium, a multimillion-dollar communications
company that does everything from video productions to creating Web sites to public
relations campaigns. Macquarium has done this sort of work for BellSouth and SnapOn
Tools. Even though these companies could have prepared their videos and created
their Web sites in-house, these tasks were: - ✔✔outsourced
✔✔In buying an existing business, the prospective buyer should ask questions about
the operation of the business. Which of the following would be an inappropriate question
to ask? - ✔✔What are you going to do with the down payment?
✔✔Entrepreneurs, as a general group, dislike risk taking. - ✔✔False
✔✔The person who takes the risk of starting and managing a business to make a profit
is called a(n): - ✔✔entrepreneur
✔✔Once Arnold Patel had decided he wanted to quit working as a Web designer for a
large advertising agency and go into some kind of business for himself, he did a self-
assessment, which indicated that he had an entrepreneurial spirit. His next step will be
to: - ✔✔find the idea for his business
✔✔Due to their size large businesses tend to have greater flexibility than small
businesses. - ✔✔false
✔✔Who provides the start-up financing for the majority of new small businesses? -
✔✔the business owner and his or her family and friends
✔✔The first step in starting your own business is the creation of a unique marketable
idea. - ✔✔false
✔✔The difference between small business owners and entrepreneurs is that small
business owners: - ✔✔accept the status quo and take a short-term view of the future
are accurately described by all of the above
✔✔____ is financing obtained from investment firms that specialize in financing small,
high-growth companies and receive an ownership interest and a voice in management
in return for their money. - ✔✔venture capital
✔✔Kathy Elliot has decided that she will start an Internet company to sell reliable used
cars to customers nationwide. She has decided to use the sole proprietorship business
,format. Elliot's next step is to write a formal _____ before she applies for a business
loan. - ✔✔business plan
✔✔Andy Yocom saw prime advertising space on the flags on the golf course. He
reasoned that any marketing messages would get prominent attention if they were
placed on the flags since golfers focus on them when they take their shots. As a result
Yocom used his own initiative and money to start Invision Golf Group Inc. Yocom is an
example of a(n): - ✔✔entrepreneur
✔✔An entrepreneur is a person who _____ a business. - ✔✔owns and operates
✔✔Entrepreneurs are people with vision, drive, and creativity, who are willing to take
the risk of starting and managing a business to make a profit. - ✔✔true
✔✔In the past few years, the federal government has cut back burdensome government
regulations and paperwork to the point that they are almost non-existent for small
business owners. - ✔✔false
✔✔Hawaiian-born Jon P. Farmer is the founder of Kolopua Hawaii LLC, a company that
markets Pure Hawaiian Air. Bottles of Pure Hawaiian Air contain air that smells like the
floral bouquet that greets tourists as they get off the plane in Hawaii. Which of the
following federal agencies should Farmer contact if he needs management assistance?
- ✔✔SBA
✔✔The most common use of a business plan is to persuade lenders and investors to
finance the venture - ✔✔true
✔✔Unlike large corporations, sole proprietorships do not need a business plan. -
✔✔false
✔✔Established small businesses are defined as companies that have been in business
at least fifteen years and employ between 50 to 500 employees. - ✔✔false
✔✔_____ financing is a form of business financing consisting of borrowed funds that
must be repaid with interest over a stated time period. - ✔✔debt
✔✔Entrepreneurs typically are innovators who start companies to pursue their ideas for
a new product or service. - ✔✔true
✔✔Which of the following is NOT one of the advantages of owning a small business? -
✔✔avoidance of taxes
, ✔✔Mark Ghermizian had quit his job and was looking to start a small business so he
could be his own boss. When he read that people spend up to fifteen minutes every day
staring at a bathroom stall door, he decided he would find advertisers who wanted to
pay to have their advertising messages on bathroom stall doors. Since he has his idea,
Ghermizian's next step is to: - ✔✔choose a form of business organization
✔✔Jill Hansom borrowed $40,000 from a credit union to start a company that makes
and sells peach salsa. Hansom used _____ financing. - ✔✔debt
✔✔_____ financing is a form of financing consisting of funds raised through the sale of
stock in a business. - ✔✔equity
✔✔One way to ease the burden of managing a business is to: - ✔✔hire outside
consultants
✔✔All of the following are characteristics of an entrepreneurial personality EXCEPT: -
✔✔the willingness to be a follower rather than a leader
✔✔Which of the following is a reason why small business thrives in the United States? -
✔✔rapidly changing technology
✔✔A well-written business plan should contain: - ✔✔all of the above
✔✔A _____ is a formal written statement that describes in detail the idea for a new
business and how it will be carried out. - ✔✔business plan
✔✔Once the business plan is finished, the next step is to: - ✔✔names of employees
✔✔Navim Jain sold stock to investors in order to finance Sparkart, LLC, a company that
markets software to track how many times music is played and shared among peers.
Jain used _____ financing. - ✔✔equity
✔✔An organization's _____ is its general purpose or reason for existence. - ✔✔mission
✔✔Asan Linhoud has a major decision to make regarding whether to create a new
sales territory or simply add customers to existing territories. He asks for suggestions
from his sales reps but will make his own decision. This style of leadership is called: -
✔✔consultative
✔✔Managers must act in interpersonal, informational, and decisional roles. - ✔✔true
✔✔The first step in setting up a control process is to measure performances - ✔✔false
