Deck 5: Small Business Entry: Paths to Part-Time Entrepreneurship

Question 1

The majority of part-time businesses are based in the home.

Answer 1

True

Question 2

One of the ways to determine the financial situation of a business is by crafting a business plan.

Answer 2

True

Question 3

Cannibalizing occurs when people do work for their part-time business while they are at their full-time job,blurring the boundary between them.

Answer 3

False

Question 4

There are two key groups outside one's business with which one must deal-customers and investors.

Question 5

Outsourcing refers to the assignment of work to others over whom one has power.

Question 6

The e-commerce industry grew at a steady rate for several years but has now stopped growing and has leveled off.

Question 7

The more time and energy one spends preparing for a small-scale part-time business,the longer it takes to make a profit.

Question 8

Primary disadvantages of stand retailing are that it requires a significant amount of capital and time investment.

Question 9

Covenants are government specifications for acceptable use of land and buildings in particular areas.

Question 10

Part-time employment refers to working for 50 or fewer hours a week.

Question 11

Most entrepreneurs start out working part time on their new business.

Question 12

Pricing is not seen as a challenge by part-time businesses.

Question 13

Most small businesses-even part-time ones-need to have a website regardless of whether or not they use it for actual sales.

Question 14

Intellectual property refers to original works like inventions,visual and performing art works,books,and computer programs.

Question 15

When pursuing a part-time entrepreneurship,there are usually two major questions: What kind of product or service do you want to offer and how do you want to organize your part-time business.

Question 16

Delegation is not for everyone and every situation.

Question 17

The advantage of consignment approaches is that they permit full-time sales with only a part-time involvement from the owner.

Question 18

In deciding whether to make the move from part-time to full time entrepreneurship,the key question is usually government regulations.

Question 19

Aggrandizing refers to taking business away from your employer.

Question 20

Moonlighting refers to working on one's own part-time job after one's regular job.

Question 21

The limitations imposed on a business's property by neighborhood groups are referred to as:

A) easements.
B) covenants.
C) volatilities.
D) aggrandizements.

Question 22

Which of the following statement is not true about considering how to organize your new part-time business?

A) You want a low cost of start-up.
B) The more time and energy you spend preparing for a part-time business,the longer it takes to make a profit.
C) In most cases,the cost to start-up and the time to market are not closely related.
D) For a part-time firm,it may be hard to have a lot of the indicators of legitimacy,or permanence.

Question 23

Which of the following is a reason why more new businesses start on a part-time basis?

A) The cost of entry and exit is low.
B) There is lack of volatility.
C) There is a broad window of opportunity.
D) The part-time workforce is very small.

Question 24

_____ refers to working for 35 or fewer hours a week.

A) Franchising
B) Full-time employment
C) Aggrandizing
D) Part-time employment

Question 25

All of the following are situations in which it might make better sense to undertake a part-time business except:

A) when someone is new to business and needs to gain basic experience.
B) when someone lacks resources to pursue a full-scale business.
C) when there is a narrow window of opportunity.
D) when there is too much competition.

Question 26

Part-time entrepreneurs should separate and balance business and home.This separation and balance is pertinent to which aspect of the BRIE model?

A) Exchange
B) Intention
C) Boundary
D) Resources

Question 27

Which of the following is an example of part-time business?

A) Tabatha,who works from home for a fashion website for a minimum of 40 hours a week
B) Raul,who works as an intern in a law firm for more than 35 hours a week
C) Dorothy,who works in her small bakery for less than 30 hours a week
D) Joshua,who teaches piano to children for 40 hours a week

Question 28

A(n)_____ is a permission from a government organization to act differently than what the laws state.

A) covenant
B) easement
C) variance
D) business pass

Question 29

Which of the following situations indicates that it makes better sense to first undertake a part-time business?

A) Byron has a full-time business plan.
B) Jamie wants to start a franchise for an international brand.
C) Cathy has funds to start her own music school.
D) Damon wants to gain experience in the advertising industry.

Question 30

When running a part-time business,there are two key groups outside your business with whom you must deal - customers and _________.

A) suppliers
B) investors
C) financial institutions
D) government

Question 31

For new entrepreneurs,which of the following would be a good reason to undertake a part-time business first before a full-time one?

A) To buy an existing business
B) To gain basic experience
C) To open a franchise
D) To increase competition in a specific industry

Question 32

Andrew initially worked with a travel website for few months and then became self-employed by starting a martial arts school,where he taught karate to teenagers.After an year,he closed the school and joined an advertising firm.After two years,he quit the advertising firm and became self-employed as a freelance music composer.Which of the following terms indicates the changes in Andrew's employment structure?

A) Volatility
B) Adverse possession
C) Pop-up business
D) Easement

Question 33

Which of the following is an example of e-commerce?

A) Julia bought handicraft from a local market.
B) Tabatha bought a cell phone in an exchange offer at an exhibition.
C) Arthur bought a pair of jeans from the store next to his house.
D) Christopher got shoes delivered at his home after he ordered for it online.

Question 34

All of the following are reasons for the large numbers of home-based businesses in the United States except that:

A) the idea that a customer knows where the entrepreneur lives can be a point in favor of trusting in the potential permanence of the firm.
B) it is inexpensive,since the owner's residence is his or her office.
C) they generally give customers the strongest sense of legitimacy.
D) one can get their business going where he or she lives.

Question 35

Which of the following is true with regard to home-based businesses in the United States?

A) Home-based businesses are specific only to making furniture,toys,clothing,or food.
B) Home-based businesses give U.S.customers the strongest sense of legitimacy.
C) Home-based businesses in the United States represent only 5 percent of all firms.
D) Home-based businesses are inexpensive and quick to start.

Question 36

When comparing the size of U.S.industries by major sector,which industry had the greatest number of establishments and size?

A) Professional and business services
B) Construction
C) Retail trade
D) Education and health care

Question 37

_____ refers to the impression of a long-term continuity a business gives others.

A) Intermittence
B) Variance
C) Passé
D) Permanence

Question 38

Government specifications for acceptable use of land and buildings in particular areas are called:

A) licensing laws.
B) public utility laws.
C) property laws.
D) zoning laws.

Question 39

The frequency of business starts and stops is referred to as:

A) volatility.
B) aggrandizing.
C) part-time business.
D) adaptability.

Question 40

When deciding how to organize your part-time business,which of the following is not one of the three key considerations?

A) The permanence of the business you are creating.
B) The customers you want to target with your new product or service.
C) The cost to start-up your new part-time business.
D) The time to start-up your business.

Question 41

When an individual buys products like shoes,music,or cell phones online,it is referred to as _____ type of e-commerce.

A) business-to-business (B2B)
B) business-to-consumer (B2C)
C) consumer-to-consumer (C2C)
D) business-to-Internet (B2I)

Question 42

Which of the following is true with regard to home retail?

A) The disadvantages of home businesses include the slow speed and difficulty of setup.
B) The ability to do the work away from home and employer minimizes potential conflicts.
C) The advantage of home retail is that it provides a high steady income.
D) The high cost of getting started is one of the drawbacks of home retail.

Question 43

Cathy has created a website for her shop of homemade chocolates and scented candles.Apart from traditional retailing,she sends e-mails to the people in her neighborhood.She also informs customers about various promotional offers through pamphlets.Which of the following techniques best describes Cathy's overall marketing method?

A) Embedded marketing
B) Digital marketing
C) Multichannel marketing
D) Word-of-mouth marketing

Question 44

A listed,live connection to a different website,which in turn displays a similar link to the first website is called a(n):

A) sponsored link.
B) reciprocal link.
C) back link.
D) incoming link.

Question 45

In _____ sales,one firm sells to another firm.

A) business-to-business (B2B)
B) business-to-consumer (B2C)
C) consumer-to-consumer (C2C)
D) business-to-Internet (B2I)

Question 46

A web page in which entries are posted in reverse chronological order is a known as a:

A) blog.
B) variance.
C) search engine.
D) push service.

Question 47

Which of the following is a free way to get one's name and business known?

A) Through improving the search engine optimization of one's business
B) Tele marketing
C) Distributing business cards,stationery,printed newsletters,and brochures
D) Making informed comments on blogs and discussion forums related to one's business

Question 48

_____ is a general approach to website design intended to result in the site being displayed toward the beginning of a search engine's listing for that term.

A) Sponsored link
B) Embedded placement
C) Trackback submitter
D) Search engine optimization

Question 49

_____ refers to a fee the service levels on a person or a firm for any variety of problems related to the sale.

A) Payback
B) Overhead cost
C) Chargeback
D) Optional cost

Question 50

Smith & Roden Enterprises (SRE),a law firm,paid a leading search engine to put their company's website at the top of the search engine's search list.This form of advertising used by SRE for promotion of their firm is known as _____.

A) sponsored link
B) embedded placement
C) trackback submitter
D) RSS feed

Question 51

A(n)_____ refers to a private individual or household that is the end-user of a product or service.

A) producer
B) intermediary
C) consumer
D) beneficiary

Question 52

Which of the following is true about a hosting package?

A) It should include at least 1 terabyte of traffic a month for an informational site.
B) It should give at least five web pages of space to tell a story.
C) It should include at least two e-mail accounts using ones domain name.
D) It should include an online website editor so one can make changes to his or her site without buying web-authoring software.

Question 53

There are many options if you do not want to start your business inside your home.Which of the following in not one of those options?

A) A separate room with a door.
B) An executive office.
C) A virtual office.
D) An incubator.

Question 54

Which of the following is true of the eBay website?

A) The eBay method of auctioning means one pays a fee for posting his or her product and a sales fee based on the final bid price when the item sells.
B) Most online transactions use a credit card or an online payment system like PayMate,which originated as a division of eBay.
C) eBay does not allow buyers and sellers any anonymity.
D) On eBay,one can list a single item for sale only by creating a website to support his or her effort.

Question 55

An auction in which the low bid gets the business or wins is known as a _____ auction.

A) reserve
B) buyout
C) forward
D) reverse

Question 56

An Internet site designed to introduce and explain a business to others is known as a(n):

A) e-commerce website.
B) portal website.
C) advocacy website.
D) informational website.

Question 57

Which of the following is true about business-to-business (B2B)transactions?

A) For most people,the B2B market is visible and overexposed.
B) An example of a B2B transaction would be an individual buying a cell phone.
C) B2B involves electronically-facilitated transactions between consumers through a third party.
D) B2B e-commerce is larger than B2C e-commerce.

Question 58

Which of the following part-time business approaches does the door-to-door model represent?

A) Auctioning
B) Consignment tracking
C) Home retail
D) Mail order

Question 59

Which of the following is true about RSS feeds?

A) RSS feeds are used by all websites on the Internet to push content out to customers.
B) RSS feeds sends whatever web material is specified to subscribers to that feed.
C) RSS stands for "really simple sequence."
D) RSS feeds can be read in many browsers but not with special readers.

Question 60

_____ price is a minimum acceptable selling price in an auction.

A) Absolute
B) Reserve
C) Forward
D) Small-value

Question 61

The assignment of work to others over whom one has power is referred to as:

A) delegation.
B) adverse possession.
C) aggrandizing.
D) zoning.

Question 62

_____ refers to information provided to the government concerning the existence of,name of,nature of,and contact information for one's business.

A) Zoning
B) Franchising
C) Registration
D) Permanence

Question 63

__________ is the crucial skill needed for juggling your part-time business and the rest of your life.

A) Volatility
B) Permanence
C) Time management
D) Variance

Question 64

Which of the following is true of home businesses?

A) It is very difficult to set up.
B) It requires a very high initial capital to start up.
C) It does not allow one to work away from his or her employer.
D) It provides highly variable income.

Question 65

When deciding whether to take a business from part-time to full-time,the key question is usually ___________.

A) financial
B) time management
C) based on customer approval
D) family approval

Question 66

Which of the following is true with regard to the consignment approach of selling?

A) They permit full-time sales only with full-time involvement from a person.
B) They are high-risk level undertakings.
C) They have low profitability because of agent's fees.
D) They have no flexibility despite variety of consignment agents and agencies available.

Question 67

An approach to selling in which the salesperson recruits customers to become distributors of the product or service to others is known as _____.

A) network marketing
B) auctioning
C) catalog selling
D) online marketing

Question 68

Which of the following activities mimics multilevel marketing?

A) Forward networking
B) Reserved auctioning
C) Counterfeit catalog selling
D) Illegal pyramid schemes

Question 69

All of the following are success factors to "stand retail" except that:

A) it tends to be either semi-permanent ones or movable ones.
B) it needs to be built in places where there is less foot or vehicle traffic.
C) it can be quickly established.
D) it does not require a lot of investment in inventory.

Question 70

Which of the following is considered an advantage of stand retailing?

A) Variable income
B) Minimum startup investment
C) Steady income
D) Strong customer base

Question 71

Which of the following represents a disadvantage of the consignment approach?

A) Availability of different consignment stores and auctions
B) Long amount of time before payouts
C) Full-time sales with only a part-time involvement from the owner
D) High setup costs

Question 72

In stand retail,the key success factor for a stand is:

A) having a location where there is enough foot or vehicle traffic.
B) having a variable income.
C) having nonperishable sale items.
D) sharing with other businesses to minimize the high rent.

Question 73

In door-to-door selling,_____ refers to getting the customer to agree to buy.

A) opening
B) promoting
C) auctioning
D) closing

Question 74

Contracting with people or companies outside one's business to get work done for the business is known as:

A) aggrandizing.
B) hybrid entrepreneurship.
C) outsourcing.
D) licensing.

Question 75

Four aspects of part-time entrepreneurship are very different from full-time business.Gaining legitimacy and trust among customers is one.Which of the following is not one of the other three aspects?

A) Determining what you are able to delegate.
B) Finding the suppliers most suited to your particular needs.
C) The challenge you face when moving from part-time to full-time entrepreneurship.
D) The special ethical challenge that comes from juggling part-time entrepreneurship and other work.

Question 76

To a part-time entrepreneur pricing is very important.Which of the following statements about pricing and costing is not true?

A) People working part time can be prone to underestimate their costs.
B) Central to figuring the real cost of your product is keeping good records.
C) Pricing is often seen as a challenge by part-time businesses.
D) A good way to get a realistic idea of pricing your product is to price competitors' products.

Question 77

The fundamental success factor in door-to-door selling is:

A) closing the sale.
B) having a location with enough foot traffic.
C) approaching a "high-rent" district.
D) having a perishable product for sale.

Question 78

One of the most ancient forms of small business is:

A) stand retailing.
B) auctioning.
C) mail order.
D) licensing.

Question 79

For part-time businesses,_____ refers to the documented permission from the government to run a business.

A) covenants
B) aggrandizing
C) licensing
D) zoning

Question 80

Which of the following represents an advantage of the consignment approach?

A) Full-time sales with only a part-time involvement from a person
B) High potential for competing offers
C) Less amount of time before payout
D) Complete lack of inventory