Question 1

Entrepreneurial skills are required to&#10;A)maintain a business&#10;B)start a business&#10;C)solidify existing operations&#10;D)sell the business

Accepted Answer

Entrepreneurial skills are primarily needed to start a business. These skills include creativity, risk-taking ability, problem-solving, innovation, and leadership. Once a business is established, these skills may still be necessary to keep it competitive and adaptable to changes in the market. However, entrepreneurial skills alone may not be sufficient to maintain and solidify existing operations, especially when the business grows and becomes more complex. At that stage, other skills such as management, finance, marketing, and strategic planning are also essential. Selling a business may require different skills such as negotiation, valuation, and legal expertise, but not necessarily entrepreneurial skills.

Question 2

In which situation would it be the most appropriate to utilize managerial skills?&#10;A)generating ideas&#10;B)maintaining control of operations&#10;C)generating solutions to problems&#10;D)adding new products to the line

Accepted Answer

Maintaining control of operations requires the utilization of managerial skills such as planning, organizing, leading, and controlling to ensure that the operations are efficient and effective. This is a key responsibility of managers, and they need to have a good grasp of these skills to ensure that their team is working together and achieving their goals. While generating ideas, generating solutions to problems or adding new products to the line also require managerial skills, maintaining control of operations is the most appropriate situation for the utilization of such skills.

Question 3

Even though they own their own businesses.entrepreneurs must still answer to&#10;A)their boss&#10;B)neighbors&#10;C)customers and suppliers&#10;D)no one

Accepted Answer

Entrepreneurs may be their own bosses, but they still have to answer to their customers and suppliers. It is important for them to maintain good relationships with these parties in order to ensure the success and sustainability of their business. Additionally, they may also have to comply with certain regulations and laws, which means they cannot answer to "no one."

Question 4

The entrepreneurial startup process begins with&#10;A)a visit to the banker for startup funds&#10;B)a visit to the library for more information on the business&#10;C)a visit to a business professor for advice&#10;D)an innovative idea that is refined as the idea is thought through

Accepted Answer

The entrepreneurial startup process typically begins with an innovative idea that is then refined through careful thought and planning. Funding, information gathering, and advice-seeking may come later in the process, but the ideation and refinement of the business concept are the first steps.

Question 5

Which of the following is not an advantage of small business ownership?&#10;A)independence&#10;B)challenge&#10;C)skill development&#10;D)more free time

Accepted Answer

Small business owners typically work long hours and have less free time compared to employees in larger companies. Therefore, more free time is not an advantage of small business ownership.

Question 6

Which of the following are not primary causes of small business failure?&#10;A)incompetence and inexperience&#10;B)lack of financial capacity&#10;C)floods and tornados&#10;D)lack of understanding financial information

Accepted Answer

Floods and tornados are external factors that are beyond the control of small business owners. The other options are related to internal factors that can contribute significantly to small business failure.

Question 7

Personal characteristics of successful entrepreneurs include&#10;A)business degree&#10;B)risk taking&#10;C)perseverance&#10;D)risk taking and perseverance

Accepted Answer

Successful entrepreneurs need to be able to take risks and have the perseverance to keep going in the face of challenges and failures. While a business degree can be helpful, it is not a necessary characteristic for success as an entrepreneur.

Question 8

Small businesses tend to be&#10;A)labour intensive&#10;B)capital intensive&#10;C)balanced between labour and capital intensity&#10;D)none of the answers are correct

Accepted Answer

Small businesses generally rely heavily on human labor rather than expensive machinery or equipment, making them more labor-intensive than capital-intensive.

Question 9

Entrepreneurial traits include&#10;A)developing strategy&#10;B)team player&#10;C)creativity&#10;D)works through others

Accepted Answer

Entrepreneurial traits often include creativity, as entrepreneurs need to innovate and come up with new ideas to succeed in their ventures.

Question 10

The major causes of business failure include&#10;A)manager does not have a business degree&#10;B)incompetence and inexperience&#10;C)type of small business&#10;D)number of competitors

Accepted Answer

Incompetence and inexperience are cited as the most common causes of business failure. Lack of knowledge and experience in managing finances, marketing, operations, and employees can all contribute to business failure. While having a business degree may be helpful, it is not a guarantee of success, and many successful entrepreneurs have achieved success without one. The type of small business and the number of competitors can also impact a business's success, but they are not as significant factors as incompetence and inexperience.

Question 11

Managerial skills are required to&#10;A)expand product lines&#10;B)start a business&#10;C)develop new ideas&#10;D)maintain a business

Accepted Answer

The answer of Managerial skills are required to&#10;A)expand product lines&#10;B)start...

Question 12

In which phase is entrepreneurship most important?&#10;A)startup process&#10;B)hiring of key employees&#10;C)maintaining a positive cash flow&#10;D)building a sufficient customer base

Accepted Answer

The answer of In which phase is entrepreneurship most important?&#10;A)startup...

Question 13

Which of the following is not an environmental characteristic conducive to small business success?&#10;A)good owner-manager rapport with employees&#10;B)high labour intensity&#10;C)industries that do not receive government assistance&#10;D)markets requiring flexibility

Accepted Answer

The answer of Which of the following is not an...

Question 14

Specific areas of managerial incompetence contributing to small business failure include&#10;A)budgeting&#10;B)receivables and payables management&#10;C)handling personnel&#10;D)all of the answers are correct

Accepted Answer

The answer of Specific areas of managerial incompetence contributing to...

Question 15

The ability to see,conceive,and create new and unique products,services is&#10;A)innovation&#10;B)risk taking&#10;C)product development&#10;D)locus of control

Accepted Answer

The answer of The ability to see,conceive,and create new and...

Question 16

Managerial traits include&#10;A)creativity&#10;B)skills in several functional areas&#10;C)innovativeness&#10;D)risk taking

Accepted Answer

The answer of Managerial traits include&#10;A)creativity&#10;B)skills in several functional areas&#10;C)innovativeness&#10;D)risk...

Question 17

The primary reason most people start their own business is to&#10;A)build for their family&#10;B)earn large sums of money&#10;C)use their skills/abilities&#10;D)gain independence

Accepted Answer

The answer of The primary reason most people start their...

Question 18

How much longer do entrepreneurs work per week on average than paid employees.&#10;A)30&#10;B)20&#10;C)6&#10;D)the same

Accepted Answer

The answer of How much longer do entrepreneurs work per...

Question 19

Which of the following is not a characteristic of a successful small business?&#10;A)high operating expenses&#10;B)alertness to change&#10;C)ability to attract and hold employees&#10;D)thoroughness with operating details

Accepted Answer

The answer of Which of the following is not a...

Question 20

The risks of self-employment include all but which of the following?&#10;A)income uncertainty&#10;B)more than 9 - 5 work hours&#10;C)the business takes over the life of the owner&#10;D)guaranteed income

Accepted Answer

The answer of The risks of self-employment include all but...

Deck 2: The Small Business Decision