Learning Objective: 01-01 Describe the scope of small business in the United States.Level of Difficulty: 1 Easy Topic: Entrepreneurs Are Everywhere 4.. AACSB: Analytic Blooms: Remember L
Trang 1TEST BANK FOR ENTREPRENEURIAL SMALL BUSINESS 4TH
EDITION BY KATZ
True / False Questions
1 The U.S government agency that helps people start small businesses is the U.S Department of Commerce
Trang 29 Traditional small businesses' schedules are defined by the owners' needs
16 In the BRIE model, exchange refers to moving resources, goods, or services to others,
in exchange for money or other resources
Trang 320 Entrepreneurship levels are very high in efficiency-driven economies
True False
21 The primary focus of corporate entrepreneurship is creating new civic organizations which are financially self-sufficient
True False
Multiple Choice Questions
22 The _ is a U.S government agency that helps people start a business and also provides them support and advocacy
23 Truly entrepreneurial businesses are characterized by:
A the franchise they are associated
Trang 424 Small businesses are usually:
25 Which of the following is true of a franchise?
A It is the international term for all small
Trang 528 A business run by the individual who owns it is referred to as a(n) _
29 Which of the following is true of a small business?
A Its preferred funding source is other people's
30 Small businesses differ from high-growth ventures in that in small businesses:
A the focus is on effectiveness rather than
31 High-growth ventures differ from small businesses in that in high-growth ventures:
A the focus is on efficiency rather than
Trang 632 Which of the following is a characteristic of a small business?
A Source of funding is primarily other people's
33 Which of the following is true of a high-growth venture?
A It considers sales as more important than
34 Which of the following is an attribute of a high-growth venture?
A Its preferred funding source is the owner's own
A For a small business, the preferred funding source is other people's money,
whereas for a high-growth venture, it is the owner's own money
B For a small business, the personal control preference is to involve others, whereas
a high-growth venture prefers to retain autonomy
C A small business focuses on effectiveness, whereas a high-growth venture focuses
on efficiency
D A small business grows when necessary, whereas a high-growth venture grows when possible
Trang 737 Which of the following describes the significance of an overall growth strategy?
A It represents a driver of the variety of
38 Which of the following is a characteristic of a lifestyle firm?
A It starts small and grows very rapidly to become a big
39 Which of the following is true of a part-time firm?
A It starts small and stays very
Trang 944 Which of the following is a characteristic of a traditional small business?
46 Which of the following is true of the growth of a typical traditional small business?
A It tends to quickly level off after the owners operate long enough to learn the basics of making money
B It levels off after operations settle into a consistent, money-making pattern
generating income to provide a living for the owner
C It grows at rates between 5 to 15 percent
a year
D It grows at rates of 25 percent or more
a year
47 _ tend to level off after success defined by sales of between $100,000 and
$1,000,000, depending on the industry
Trang 1048 Which of the following is true of a high-performing small business?
A It often grows through multiple
49 Which of the following is a characteristic of a high-growth venture?
A It pursues low levels of
Trang 1152 _ is a reward universally mentioned by entrepreneurs
53 Which of the following is a reward that is rarely mentioned by entrepreneurs?
A To have a chance to build great
Trang 1256 Tina runs her consultancy business from her home Working from home allows her to set her own schedule and take time off at her convenience so that she can be with her family The fact that Tina gets more time with her family can be categorized as reward
58 Which of the following is a myth about small businesses?
A That failed entrepreneurs can succeed if they
Trang 1359 Financing a business online through the collective involvement of others who provide donations, loans, or investments is referred to as _
60 Bootstrapping refers to:
A funding a business online through the collective involvement of others who
Trang 1462 According to the BRIE model, which of the following is an element that is necessary tostart a business?
Trang 1565 According to the BRIE model, which of the following falls under the boundary
A The employees that work under
Trang 1668 According to the BRIE model, which of the following is true of a resource?
A It includes a business name or government
71 In terms of new jobs, which of the following is true of a small business?
A It does not employ people looking for
Trang 1772 The way that newly created goods, services, or firms hurt existing goods, services, or firms is referred to as:
restaurants in the area to lose business temporarily The way in which Mandarin in Town hurt existing restaurants in Burnsville is an example of:
Trang 1875 A nation where the major forces for jobs, revenues, and taxes come from farming or extractive industries like forestry, mining, or oil production is a(n):
Trang 1981 Virtual instant global entrepreneurship refers to:
A the transformation of a high-growth venture into a small
Trang 2082 Which of the following aspects of entrepreneurship refers to being in-tune with one's market?
Trang 2185 _ is an aspect of entrepreneurship which looks at a new thing or a new way of doing things
87 Which of the following is true of corporate entrepreneurship?
A It involves the creation of self-sustaining charitable and civic
Trang 2288 Social entrepreneurship primarily involves a person or group:
A creating new charitable and civic organizations which are financially
89 Which of the following is true of social entrepreneurship?
A It usually has a lot of
91 Effectuation refers to:
A the degree of attention a target market pays to an idea or
Trang 23Essay Questions
92 What is the difference between small businesses and high-growth ventures?
93 Briefly describe the three universally mentioned and four rarely mentioned rewards
94 What are the most common myths about small businesses? What are the facts that contradict these myths?
Trang 2495 Briefly describe the BRIE model
96 What is the role of small businesses in creating new jobs?
97 What is creative destruction?
98 What is a factor-driven economy?
Trang 2599 What is VIGE? Explain
Trang 26Chapter 01 Small Business: Its Opportunities and Rewards
Small Business Administration (SBA) is a part of the U.S government, which
provides support and advocacy for small businesses
AACSB: Analytic Blooms: Remember Learning Objective: 01-01 Describe the scope of small business in the United States.
Level of Difficulty: 1 Easy Topic: Entrepreneurs Are Everywhere
Level of Difficulty: 1 Easy Topic: Entrepreneurs Are Everywhere
Trang 27Learning Objective: 01-01 Describe the scope of small business in the United States.
Level of Difficulty: 1 Easy Topic: Entrepreneurs Are Everywhere
4
(p 6)
Truly entrepreneurial businesses are characterized by imitativeness in their
products, services, or business models
FALSE
Truly entrepreneurial businesses are characterized by novelty, in their products, services, or business models
AACSB: Analytic Blooms: Remember Learning Objective: 01-01 Describe the scope of small business in the United States.
Level of Difficulty: 1 Easy Topic: Entrepreneurs Are Everywhere
5
(p 7)
Self-employed persons are not referred to as entrepreneurs
FALSE
The self-employed, anyone who works for himself or herself instead of for others,
is also an entrepreneur According to the Census Bureau, there were about 14.7 million self-employed people in 2010
AACSB: Analytic Blooms: Remember Learning Objective: 01-01 Describe the scope of small business in the United States.
Level of Difficulty: 1 Easy Topic: Entrepreneurs Are Everywhere
Level of Difficulty: 1 Easy Topic: Entrepreneurs Are Everywhere
Trang 28High-growth ventures start small but are intended to grow rapidly, often requiring
a team of partners or managers to handle the growth
AACSB: Analytic Blooms: Remember Learning Objective: 01-02 Learn the differences between small businesses and high-growth ventures.
Level of Difficulty: 1 Easy Topic: Entrepreneurs Are Everywhere
8
(p 8)
Lifestyle or part-time firms typically provide enough profit or salary to supplement
an income but usually not enough on which to live
Level of Difficulty: 1 Easy Topic: Entrepreneurs and Firm Growth Strategies
Level of Difficulty: 1 Easy Topic: Entrepreneurs and Firm Growth Strategies
Trang 29Level of Difficulty: 1 Easy Topic: Entrepreneurs and Firm Growth Strategies
Level of Difficulty: 1 Easy Topic: Rewards for Starting a Small Business
12
(p 10)
Flexibility rewards are the most rapidly growing type of reward
TRUE
Flexibility rewards are perhaps the most rapidly growing type of reward They refer
to the ability of business owners to structure their lives in the way that best suits their needs
AACSB: Analytic Blooms: Remember Learning Objective: 01-04 Explore the rewards entrepreneurs can achieve through their businesses.
Level of Difficulty: 1 Easy Topic: Rewards for Starting a Small Business
Trang 30Learning Objective: 01-05 Be able to dispel the key myths about small businesses.
Level of Difficulty: 1 Easy Topic: Myths about Small Businesses
AACSB: Analytic Blooms: Remember Learning Objective: 01-05 Be able to dispel the key myths about small businesses.
Level of Difficulty: 1 Easy Topic: Myths about Small Businesses
Level of Difficulty: 1 Easy Topic: Getting Started Now: Entry Competencies
Level of Difficulty: 1 Easy Topic: Getting Started Now: Entry Competencies
Trang 31Level of Difficulty: 1 Easy Topic: Getting Started Now: Entry Competencies
Level of Difficulty: 1 Easy Topic: Getting Started Now: Entry Competencies
businesses will not succeed
AACSB: Analytic Blooms: Understand Learning Objective: 01-07 Recognize how small business is important to our economy and your community.
Level of Difficulty: 2 Medium Topic: Small Business and the Economy
Trang 32Level of Difficulty: 1 Easy Topic: Small Business and the Economy
21
(p 20)
The primary focus of corporate entrepreneurship is creating new civic
organizations which are financially self-sufficient
FALSE
Social entrepreneurship involves creating new charitable and civic organizations which are financially self-sufficient
AACSB: Analytic Blooms: Remember Learning Objective: 01-07 Recognize how small business is important to our economy and your community.
Level of Difficulty: 1 Easy Topic: Small Business and the Economy
Multiple Choice Questions
Small Business Administration (SBA) is a part of the U.S government, which
provides support and advocacy for small businesses
AACSB: Analytic
Trang 33Blooms: Remember Learning Objective: 01-01 Describe the scope of small business in the United States.
Level of Difficulty: 1 Easy Topic: Entrepreneurs Are Everywhere
23
(p 6)
Truly entrepreneurial businesses are characterized by:
A the franchise they are associated
Level of Difficulty: 1 Easy Topic: Entrepreneurs Are Everywhere
Level of Difficulty: 1 Easy Topic: Entrepreneurs Are Everywhere
Trang 34(p 7)
Which of the following is true of a franchise?
A It is the international term for all small
Level of Difficulty: 1 Easy Topic: Entrepreneurs Are Everywhere
Level of Difficulty: 1 Easy Topic: Entrepreneurs Are Everywhere
Trang 35Level of Difficulty: 1 Easy Topic: Entrepreneurs Are Everywhere
Level of Difficulty: 1 Easy Topic: Entrepreneurs Are Everywhere
Trang 36(p 8)
Which of the following is true of a small business?
A Its preferred funding source is other people's
Level of Difficulty: 1 Easy Topic: Entrepreneurs Are Everywhere
30
(p 8)
Small businesses differ from high-growth ventures in that in small businesses:
A the focus is on effectiveness rather than
Level of Difficulty: 1 Easy Topic: Entrepreneurs Are Everywhere
Trang 37(p 8)
High-growth ventures differ from small businesses in that in high-growth ventures:
A the focus is on efficiency rather than
Level of Difficulty: 1 Easy Topic: Entrepreneurs Are Everywhere
32
(p 8)
Which of the following is a characteristic of a small business?
A Source of funding is primarily other people's
Level of Difficulty: 1 Easy Topic: Entrepreneurs Are Everywhere
Trang 38(p 8)
Which of the following is true of a high-growth venture?
A It considers sales as more important than
Level of Difficulty: 1 Easy Topic: Entrepreneurs Are Everywhere
34
(p 8)
Which of the following is an attribute of a high-growth venture?
A Its preferred funding source is the owner's own
Level of Difficulty: 2 Medium Topic: Entrepreneurs Are Everywhere
Trang 39Level of Difficulty: 2 Medium Topic: Entrepreneurs Are Everywhere
High-growth ventures start small but are intended to grow rapidly, often requiring
a team of partners or managers to handle the growth
AACSB: Analytic Blooms: Remember Learning Objective: 01-02 Learn the differences between small businesses and high-growth ventures.
Level of Difficulty: 1 Easy Topic: Entrepreneurs Are Everywhere
Trang 40(p 8)
Which of the following describes the significance of an overall growth strategy?
A It represents a driver of the variety of
AACSB: Analytic Blooms: Understand Learning Objective: 01-03 Understand the four types of firm level growth.
Level of Difficulty: 2 Medium Topic: Entrepreneurs and Firm Growth Strategies
38
(p 8)
Which of the following is a characteristic of a lifestyle firm?
A It starts small and grows very rapidly to become a big
Level of Difficulty: 2 Medium Topic: Entrepreneurs and Firm Growth Strategies
Trang 41(p 8)
Which of the following is true of a part-time firm?
A It starts small and stays very
Lifestyle or part-time businesses start and stay very small, often operating
seasonally or when the owner wants to work in the business
AACSB: Analytic Blooms: Understand Learning Objective: 01-03 Understand the four types of firm level growth.
Level of Difficulty: 2 Medium Topic: Entrepreneurs and Firm Growth Strategies
AACSB: Analytic Blooms: Understand Learning Objective: 01-03 Understand the four types of firm level growth.
Level of Difficulty: 2 Medium Topic: Entrepreneurs and Firm Growth Strategies
Trang 42Level of Difficulty: 1 Easy Topic: Entrepreneurs and Firm Growth Strategies
Level of Difficulty: 1 Easy Topic: Entrepreneurs and Firm Growth Strategies
Trang 43Level of Difficulty: 2 Medium Topic: Entrepreneurs and Firm Growth Strategies
Level of Difficulty: 2 Medium Topic: Entrepreneurs and Firm Growth Strategies
Trang 44Level of Difficulty: 1 Easy Topic: Entrepreneurs and Firm Growth Strategies
46
(p 9)
Which of the following is true of the growth of a typical traditional small business?
A It tends to quickly level off after the owners operate long enough to learn the basics of making money
B It levels off after operations settle into a consistent, money-making pattern
generating income to provide a living for the owner
C It grows at rates between 5 to 15 percent
AACSB: Analytic Blooms: Understand Learning Objective: 01-03 Understand the four types of firm level growth.
Level of Difficulty: 2 Medium Topic: Entrepreneurs and Firm Growth Strategies