Question 1

Small businesses create more than 50 percent of all private U.S. gross domestic product (GDP).

Accepted Answer

According to the Small Business Administration, small businesses create 64 percent of net new private sector jobs and account for 44 percent of private GDP in the United States. However, some sources suggest that small businesses may actually contribute closer to 50 percent of private GDP.

Question 2

In the late 1950s and early 1960s, a major paradigm shift occurred in business. This paradigm shift was called the management concept.

Accepted Answer

False

Question 3

A manufacturer with fewer than 500 employees is classified as a small business.

Accepted Answer

This is true according to the Small Business Administration's definition of a small business for manufacturing industries.

Question 4

Until the early 1800s, much of the U.S. economy was based on agriculture.

Accepted Answer

This is true, as the majority of Americans during this time period were farmers or involved in farm-related industries such as textiles and shipping. Industrialization and urbanization did not begin to significantly impact the economy until the mid to late 1800s.

Question 5

A company with over $200 million in annual revenue like Boston Beer Company can be classified as a small business because it has relatively little impact on its industry.

Accepted Answer

The answer of A company with over $200 million in...

Question 6

The industry that employs the largest number of people in small business is the finance and insurance industry

Accepted Answer

According to the U.S. Small Business Administration, the industry that employs the largest number of people in small business is healthcare and social assistance, followed by retail trade and accommodation and food services. The finance and insurance industry ranks fourth in terms of small business employment.

Question 7

The Small Business Administration (SBA) estimates that there are over 220 million small businesses in the United States.

Accepted Answer

The Small Business Administration (SBA) estimates that there are over 30 million small businesses in the United States.

Question 8

Economy of scale is the lowering of costs through production of larger quantities.

Accepted Answer

Economy of scale refers to the reduction in unit cost that comes from producing larger quantities of a product or service. As production quantities increase, fixed costs can be spread over a larger number of units, reducing the average cost per unit. This can lead to increased profitability for companies that can take advantage of economies of scale.

Question 9

The manufacturing industry employs the greatest number of people in small business.

Accepted Answer

The answer of The manufacturing industry employs the greatest number...

Question 10

The common size standard for a service or retail business to be classified as a small business is $6 million in average annual sales.

Accepted Answer

The answer of The common size standard for a service...

Question 11

Alexis de Tocqueville was impressed by the way America was being built by large industrial companies.

Accepted Answer

Alexis de Tocqueville was actually critical of the large industrial companies in America and the negative impact they were having on society in his book, "Democracy in America".

Question 12

According to the Small Business Administration, 52 percent of all small businesses are home based.

Accepted Answer

According to the Small Business Administration, 52 percent of all small businesses are home based.

Question 13

The Small Business Administration (SBA) estimates that there are 25.8 million small businesses in the United States.

Accepted Answer

This is the current estimate provided by the SBA.

Question 14

In the construction industry 90 percent of the companies are classified as small businesses.

Accepted Answer

This statement is true. According to the U.S. Small Business Administration, 90 percent of construction companies have fewer than 20 employees and are considered small businesses.

Question 15

According to Figure 1.1 in the text, almost all businesses are small businesses.

Accepted Answer

Figure 1.1 in the text shows that 99.9% of businesses are small businesses, indicating that almost all businesses are small businesses.

Question 16

Of all U.S. companies exporting goods, few are classified as small businesses.

Accepted Answer

The majority of U.S. companies that export goods are actually classified as small businesses, making up a significant portion of U.S. exporters.

Question 17

According to Figure 1.2 in the text, a majority of businesses in the education service sector are small.

Accepted Answer

The answer of According to Figure 1.2 in the text,...

Question 18

Over 99 percent of all businesses are classified as small.

Accepted Answer

This statement is true according to the Small Business Administration (SBA), which defines a small business as having under 500 employees for most industries.

Question 19

The marketing concept was a paradigm shift that focused on new advertising media.

Accepted Answer

The marketing concept was a paradigm shift in the way businesses approached their marketing strategies, focusing on understanding and meeting the needs of consumers rather than just promoting products through traditional advertising methods. It was not specifically about new advertising media, although these may have played a role in implementing the marketing concept.

Question 20

There are several definitions for small business; however, the most common criterion is the number of employees working for that business.

Accepted Answer

The number of employees is generally considered the most common criterion for defining a small business.

Quiz 1: Small Business: an Overview

Small businesses create more than 50 percent of all private U.S. gross domestic product (GDP).

In the late 1950s and early 1960s, a major paradigm shift occurred in business. This paradigm shift was called the management concept.

A manufacturer with fewer than 500 employees is classified as a small business.

Until the early 1800s, much of the U.S. economy was based on agriculture.

A company with over $200 million in annual revenue like Boston Beer Company can be classified as a small business because it has relatively little impact on its industry.

The industry that employs the largest number of people in small business is the finance and insurance industry

The Small Business Administration (SBA) estimates that there are over 220 million small businesses in the United States.

Economy of scale is the lowering of costs through production of larger quantities.

The manufacturing industry employs the greatest number of people in small business.

The common size standard for a service or retail business to be classified as a small business is $6 million in average annual sales.

Alexis de Tocqueville was impressed by the way America was being built by large industrial companies.

According to the Small Business Administration, 52 percent of all small businesses are home based.

The Small Business Administration (SBA) estimates that there are 25.8 million small businesses in the United States.

In the construction industry 90 percent of the companies are classified as small businesses.

According to Figure 1.1 in the text, almost all businesses are small businesses.

Of all U.S. companies exporting goods, few are classified as small businesses.

According to Figure 1.2 in the text, a majority of businesses in the education service sector are small.

Over 99 percent of all businesses are classified as small.

The marketing concept was a paradigm shift that focused on new advertising media.

There are several definitions for small business; however, the most common criterion is the number of employees working for that business.