Question 1

The size of the world market is:

Accepted Answer

According to the latest population estimates from the United Nations, the world population is currently around 7.9 billion. Therefore, the size of the world market is also around 6.7 billion people.

Question 2

Chris is an angel investor. This means that he:

Accepted Answer

An angel investor is someone who invests their own money in startups or early-stage businesses with high growth potential in exchange for a share of ownership in the company. Their hope is that the company will become successful and eventually go public, giving the angel investor a good return on their investment.

Question 3

Entrepreneurs learn that there are many legal and financial issues involved in starting their business. The best way for the small business owner to resolve these issues and protect the firm's resources is:

Accepted Answer

Seeking and paying for expert guidance and assistance is the best way for small business owners to ensure that they are making informed decisions regarding legal and financial issues. While trusting one's common sense can be helpful, it is not always sufficient in addressing complex legal and financial matters. Hiring full-time lawyers and accountants may not be feasible or necessary for all small businesses, especially in their early stages. Deferring decisions can also lead to unnecessary risks and liabilities for the company. Therefore, seeking expert guidance and assistance offers the most practical and effective approach for small business owners.

Question 4

Bing came to the U.S. on a swimming scholarship. After a few months of frustration with trying to find swim goggles like he used in his native country, he started a web site that offered specialty goggles for swimming, skiing, and snowboarding. Before launching the web site and filling orders, Bing spent a few months going to swim meets and gathering preferences about goggles from other swimmers. Bing's actions:

Accepted Answer

The answer of Bing came to the U.S. on a...

Question 5

After retiring as a telecommunications executive, Chad joined SCORE. As a SCORE counselor Chad will:

Accepted Answer

Chad, as a SCORE counselor, will provide consulting services to small businesses for free. SCORE counselors are volunteers who provide free and confidential business advice to entrepreneurs and small business owners. They help businesses start, grow, and thrive through mentorship, workshops, and online resources. Venture capital funds, visiting high schools, and helping with research and development are not typical roles of SCORE counselors.

Question 6

One of the hurdles small businesses face when deciding to export is:

Accepted Answer

Small businesses often struggle to find financing for exporting, which can be a significant hurdle to overcome. Without adequate financial resources, small businesses may not be able to afford the costs of exporting or may not be able to meet the financial requirements of overseas buyers.

Question 7

Ben got a phone call from one of his regular customers asking if he had time to repair a couple of broken sprinkler heads on the customer's underground sprinkling system. Although it was already 6:00 p.m. and Ben had put in a full day of work, he turned his car around and headed for the customer's house. As a small business owner, Ben demonstrates:

Accepted Answer

Ben's willingness to go above and beyond for his customer shows his dedication to providing good customer service and building a positive reputation for his small business. He is adapting to the customer's needs and demonstrating that he values their satisfaction.

Question 8

As a small business owner, Tanika can't afford to provide her employees with the high wages and benefits offered by big corporations. One way to retain her employees and create a high level of motivation would be to:

Accepted Answer

Empowering employees to develop their own ideas can create a sense of ownership and investment in the success of the company. This can lead to increased motivation and loyalty, which can be more effective in retaining employees than simply offering high wages and benefits. It also allows for innovation and creativity within the business, which can lead to long-term success.

Question 9

Which of the following is not a recommended source of small business advice for persons contemplating a new business?

Accepted Answer

Other prospective small business owners are not yet experienced and may not provide reliable advice compared to experienced sources like successful business owners, university programs, or SCORE.

Question 10

After Kate graduated from college, her grandfather created a bookkeeping position for her in his furniture retail business. Her older brother is in charge of purchasing inventory for the stores, yet often the store runs out of popular furniture or become overstocked with pieces that must be marked down to be sold. Kate is confident that her brother is more suited for handling accounting and finance, and she has a pulse on what sells and how much sells. Although she has spoken with her grandfather about it a couple of times, he seems reluctant to change. As the founder of the business, he may:

Accepted Answer

The scenario suggests that the grandfather may find it difficult to remove family members from positions, even if it is not good for the business, due to emotional attachments and familial obligations.

Question 11

In order to improve his chances of small business success, Demitri prepared a business plan. Most often, a positive outcome of this exercise is:

Accepted Answer

The exercise of preparing a business plan allows the entrepreneur to carefully consider all aspects of their business idea and develop a strategy for success. While a business plan may meet certain reporting requirements or assist with financing, its primary benefit is in its ability to guide the entrepreneur in making informed decisions and setting achievable goals. A business plan cannot necessarily protect the entrepreneur from failure, but it can increase the likelihood of success by providing a roadmap for the business.

Question 12

Small business owners interested in finding out more about exporting will find that:

Accepted Answer

There is an abundance of inexpensive information from a variety of sources available for small business owners interested in exporting. These sources include government agencies like the U.S. Small Business Administration and the U.S. Department of Commerce, as well as trade associations and private firms that specialize in international business. It is important for small business owners to research and identify the most reliable and high-quality sources of information for their specific needs.

Question 13

Which of the following best describes the outlook for small businesses in international markets?

Accepted Answer

The world market provides small businesses with access to a larger market and potentially greater profits compared to the U.S. domestic market. Many small businesses have successfully expanded their operations and found success in international markets.

Question 14

Justin's favorite part of Introduction to Business class was marketing. As he brainstorms about starting a car detailing business, he recalls that it is important to:

Accepted Answer

It is important to analyze the market before starting a business to ensure that there is a demand for the service, understand the competition, and identify the target market. This will help in making informed decisions about the business, such as pricing, marketing, and location.

Question 15

Samantha recently applied for a microloan from the SBA. Although several criteria are important, the Small Business Administration's decision to grant or deny the loan will largely depend upon

Accepted Answer

The answer of Samantha recently applied for a microloan from...

Question 16

Increased participation in small business exporting owes credit to .

Accepted Answer

Technological advances such as the Internet and PayPal have made it easier and safer for small businesses to fulfill orders abroad, therefore increasing their participation in exporting.

Question 17

Ming's three employees have been with her since she started Employment Recruiters, Inc., nearly 10 years ago. As she contemplates the staffing for her new branch office, she senses that none of these three are ready to manage the office. Faced with this difficult situation, she should:

Accepted Answer

It is important for the success of the new branch office to have a qualified and competent manager. If the current employees are not ready for this role, it would not be wise to appoint one of them just for the sake of loyalty. Additionally, running the new branch herself could spread Ming too thin, and appointing all three to run it using a "team" approach could lead to confusion and lack of clear leadership. Hiring a new employee with the necessary skills and experience to manage the office is the best option in this situation.

Question 18

In order to finance The Shortbread Shack, a mobile bakery business that services several large Silicon Valley companies, Marcy demonstrated her steadfast desire to get her bakery off the ground by visiting several bankers with .

Accepted Answer

Marcy would need to present her business plan to bankers in order to secure financing for her mobile bakery business. A well-developed business plan outlines the company's goals, mission, strategies, and financial projections, which can help convince lenders that the venture will be a good investment.

Question 19

According to the U.S. Department of Commerce, a of small businesses export their goods.

Accepted Answer

The sentence states that "a small percentage of small businesses export their goods." This means that only a small fraction of small businesses engage in exporting, implying that the percentage is low.

Question 20

One reason why many U.S. small businesses are not involved in exporting is:

Accepted Answer

Many small businesses do not know how to get started with exporting, which can be a daunting and complicated process. This lack of knowledge and resources can be a major barrier for small businesses looking to expand their markets globally.

Quiz 6: Entrepreneurship and Starting a Small Business