Deck 2: The Small Business Decision

Question 1

In which phase is entrepreneurship most important?

A) Building a sufficient customer base
B) Maintaining a positive cash flow
C) Start-up process
D) Hiring of key employees

Answer 1

C

Question 2

The risks of self-employment include all but which of the following?

A) Income uncertainty
B) The business takes over the life of the owner.
C) Work more than 9-5 schedule
D) Guaranteed income

Answer 2

D

Question 3

Personal characteristics of successful entrepreneurs include:

A) risk-taking and access to financial resources.
B) risk-taking and perseverance.
C) perseverance.
D) having a business degree.

Answer 3

B

Question 4

The ability to see, conceive, and create new and unique products/services is:

A) product development.
B) risk-taking.
C) innovativeness.
D) locus of control.

Question 5

Which of the following is not a primary cause of small business failure?

A) Floods and tornados
B) Lack of understanding financial information
C) Lack of financial capacity
D) Incompetence and inexperience

Question 6

The entrepreneurial start-up process begins with:

A) a visit to the banker for start-up funds.
B) an innovative idea that is refined as the idea is thought through.
C) a visit to the library for more information on the business.
D) a visit to a business professor for advice.

Question 7

Profit Magazine found that owners of small- and medium-sized businesses on average worked:

A) 60 hours per week.
B) 40 hours per week.
C) 54 hours per week.
D) 45 hours per week.

Question 8

Even though they own their own businesses, entrepreneurs must still answer to:

A) customers and suppliers.
B) their boss.
C) neighbours.
D) no one.

Question 9

Managerial traits include:

A) skills in several functional areas.
B) creativity.
C) innovativeness.
D) risk-taking.

Question 10

Which of the following is not an advantage of small business ownership?

A) More free time
B) Independence
C) Skill development
D) Challenge

Question 11

Specific areas of managerial incompetence contributing to small business failure include:

A) company management does not ask for help.
B) lack of financial skill.
C) poor or non-existent management information systems.
D) all of the answers are correct.

Question 12

The primary reason most people start their own business is to:

A) gain independence.
B) build for their family.
C) use their skills/abilities.
D) earn large sums of money.

Question 13

Entrepreneurial traits include:

A) being a team player.
B) works through others.
C) developing strategy.
D) creativity.

Question 14

Managerial skills are required to:

A) start a business.
B) expand product lines.
C) develop new ideas.
D) maintain a business.

Question 15

In which situation would it be the most appropriate to utilize managerial skills?

A) Maintaining control of operations
B) Generating ideas
C) Generating solutions to problems
D) Adding new products to the line

Question 16

The major causes of business failure include:

A) growing too quickly.
B) number of competitors.
C) a type of small business.
D) a manager not holding a business degree.

Question 17

Small businesses tend to be:

A) balanced between labour and capital intensity.
B) labour intensive.
C) capital intensive.
D) none of the answers are correct.

Question 18

Entrepreneurial skills are required to:

A) sell the business.
B) solidify existing operations.
C) maintain a business.
D) start a business.

Question 19

Which of the following is not a characteristic of a successful small business?

A) Ability to attract and hold employees
B) Thoroughness with operating details
C) Alertness to change
D) High operating expenses

Question 20

Which of the following is not an external shock that can negatively affect small business success?

A) Loss of suppliers
B) Downturn in the economy
C) Poorly planned expansion
D) Changes in interest or currency rates

Question 21

The time orientation of an entrepreneur is:

A) long term 15-20 year plan)-to ensure continued growth of business.
B) short term-meeting quotas and budgets, weekly, monthly, quarterly, and the annual planning horizon.
C) medium term two to four years)-depending on the urgency to meet self-imposed and corporate timetable.
D) survival and achieving a 5-10 year growth of the business.

Question 22

Which of the following is not one of the Ten Commandments for intrapreneur success?

A) Come to work each day willing to be fired
B) Ask for resources before asking for advice
C) Honour your sponsor
D) Share credit wisely

Question 23

The primary motives of an intrapreneur are:

A) recognition, staff, and promotion.
B) Independence, ability to advance, and gain corporate rewards.
C) independence, opportunity to create, and money.
D) promotion and other traditional corporate rewards such as office, staff, and power.

Question 24

Which of the following is not an entrepreneurial trait?

A) Independence
B) Flexibility
C) Innovativeness
D) Teamplayer

Question 25

Many large organizations realize that to remain competitive, they need to encourage:

A) intrapreneurial activity.
B) confidence-building activity.
C) entrepreneurial activity.
D) risk-taking activity.