Self Test: Multiple Choice

You can find the answers on the last page of this text.

  1. 5-1 Which is a key trait of an entrepreneur?

    1. Flexibility

    2. Risk taking

    3. Creative thinking

    4. All of the above

  2. 5-2 Sally started her new business venture five years ago. The business brings excess organic produce to food banks and has grown 15 percent every year. Which type of entrepreneur best describes Sally?

    1. Social entrepreneur

    2. Lifestyle entrepreneur

    3. Growth entrepreneur

    4. Gazelle

  3. 5-3 One of the first things someone needs to do before starting a business is to write which of the following?

    1. A business plan

    2. A loan application

    3. A partnership statement

    4. A franchise agreement

  4. 5-4 Which of the following is not a characteristic of a small business?

    1. They have less than 500 employees.

    2. On average, the annual revenue is no more than $7 million.

    3. It is independently owned and operated.

    4. It is considered a dominant player in its industry.

  5. 5-5 Steven Ye wants to start a company. He has a rough draft of his business plan and some tentative funding but needs some additional advice and guidance to help him through the start-up process. The best source for Steve is

    1. an angel investor.

    2. a SCORE volunteer.

    3. his parents.

    4. a bank loan officer.

  6. 5-6 Kazuto is interested in starting a new business. Which is a reason Kazuto should consider buying an existing business versus starting one from scratch?

    1. He will operate a tried and tested business.

    2. He will need to work fewer hours.

    3. He will need less capital up front.

    4. All of the above

  7. 5-7 Wayland wants to buy a deli that is for sale, but the owner has put too high a value on the business’s goodwill. Goodwill is

    1. the value of the leftover products the deli gives to the local food pantry.

    2. the value of the donations the deli gives to charity.

    3. the value of the business’s reputation with the current owner.

    4. All of the above

  8. 5-8 Rebecca has been operating a pet grooming business for several years and has already maxed out her personal credit and savings. She has designed a device that will make the pet grooming process more efficient but needs about $125,000 to take the idea further and perhaps sell it to other pet groomers. Which is the most likely source of ­financing that Rebecca could use?

    1. Credit cards

    2. New business grant

    3. Funds from an angel investor

    4. Venture capital financing

  9. 5-9 Which of the following factors commonly leads to the failure of a small business?

    1. Not enough planning

    2. Too much accumulated debt

    3. Unanticipated personal sacrifices

    4. All of the above

  10. 5-10 Rashid is starting a consulting business. He needs a receptionist, a place to meet clients, and other aspects of an office. A good solution for Rashid to consider would be a(n)

    1. mentoring group.

    2. advisory board.

    3. business incubator.

    4. entrepreneurial team.

True/False

You can find the answers on the last page of this text.

  1. 5-11 Small businesses can have a positive impact on large businesses.

    1. □ True or □ False

  2. 5-12 A social intrapreneur is someone who provides funding for those in Third World countries who want to begin their own businesses but have no capital with which to do so.

    1. □ True or □ False

  3. 5-13 Although most small businesses have annual revenues less than $39 million, there is no specific revenue limit set by the SBA for small businesses.

    1. □ True or □ False

  4. 5-14 A franchisee is usually required to pay the franchiser an ongoing fee.

    1. □ True or □ False

  5. 5-15 Crowdfunding is putting a request for funds on your Facebook page.

    1. □ True or □ False

Critical Thinking Questions

  1. An image shows a star blue icon. 5-16 Companies that encouraged their employees to pursue entrepreneurial activities within an existing business created products such as Post-It Notes and Sony PlayStation. What aspects of the corporate environment promote intrapreneurial activities?

  2. An image shows a star blue icon. 5-17 Discuss how social media has affected small businesses at all stages of their development, such as financing, marketing, and communications.

  3. An image shows a star blue icon. 5-18 Compare the different sources of funding available to small business owners. What types of funding are better at the beginning stages of a business? What types of funding may be better once the business is better established and is looking to expand?

..................Content has been hidden....................

You can't read the all page of ebook, please click here login for view all page.
Reset
18.117.73.127