Chapter 6 - Multiple Choice Questions
Entrepreneurship: Starting and Managing Your Own Business:
Your Full Name:
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The Email address of an instructor to mail your quiz results:
1. The distinction between an "entrepreneur" and "small business owner" , if made, revolves around:
a.really nothing; they are truly one and the same
b.the Small Business Administration definitions
c.whether the business is an Internet based one or not
d.the risk taking or re-invention of a business vs. someone who "simply" starts a business or buys an existing one

2. Which of the following was NOT one of the classifications of entrepreneurs presented in our text?
a.Franchise entrepreneur
b.Classic entrepreneur

3. The primary reason entrepeneurs start companies is to:
a.prove they could do it
b.recover from a layoff
c.create something new
d.make money
e.control their own lives

4. One study found that entrepreneurs tend to demonstrate all of the following traits except:
b.emotionally aloof

5. One reason for the growth in small businesses relates to the trend for larger business to downsize by contracting with smaller firms to do many of the functions once done internally. This is referred to as:

6. The technical characteristics of the small business would include all of the following except:
a.independently managed
b.owned by an individual or a small group of investors
c.based locally, even though the market might be widespread
d.significant influence in its industry

7. Which of the following might be termed a disadvantage faced by the small business?
a.greater flexibility
b.greater ability to serve specialized markets
c.extreme personal commitment of the owner
d.more personal service

8. The financial assistance to small business provided by the Small Business Administration takes the form of: loans
b.guidance in locating lenders guarantees
d.assistance in filling out paperwork

9. Key features of a well written business plan would include all of the following except:
a.a financial plan
b.a description of the product analysis of the market
d.a review of the advertising firms analyzed
e.qualifications of the owner

10. When buying an existing business, to cover the possibility that existing customers might go with the old owners if they decide to open a similar business, a purchasing buyer might include in the contract:
a.a waiver of protection
b.a penalty fee
c.a noncompete clause
d.a structural fine

11. The Small Business Administration estimates that almost ______ of all new businesses fail by the end of the sixth year. eighth third fourth
d.three fourths
e.two thirds

12. To avoid the problems associated with running a new business, the use of consultants is viewed as helpful. One of the types of consultants most frequently at the top of the list recommended would be the:

13. After considering the general labor shortage of the late 1990's, one of the primary difficulties experienced by small business owners in attracting good employees is:
a.they can't offer flexible hours
b.they can't match salaries, benefits, and advancement potential of the larger firms
c.they can't offer benefits
d.they can't offer overseas business travel

14. One of significant changes in small business ownership starting in the 1990's and continuing through today is:
a.the shift toward manufacturing
b.the shift towards the southwest
c.the shift towards franchising
d.the shift towards home based businesses

15. Entrepreneurs are getting:
a.younger all the time
b.older by increasing numbers due to downsizing
c.harder to find
d.more set in their ways
e.less female and less minority oriented

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