Question 1

Owners of small businesses are responsible for much of the _____ of U.S.business.

Accepted Answer

Small businesses are often drivers of product innovation, as they are more agile and able to respond quickly to changing market demands. While small business owners may also take on short-term debt and face challenges with healthcare and wage costs, these factors are not necessarily indicative of their overall contribution to the U.S. business landscape.

Question 2

The majority of Americans entered the business world by working for _____, which are constantly creating jobs and providing opportunities for a vast number of workers.

Accepted Answer

According to data from the Small Business Administration, small businesses make up around 99.9% of all US businesses and are responsible for around 65% of net new jobs. Therefore, it can be inferred that the majority of Americans enter the business world by working for small businesses.

Question 3

Small businesses in the U.S.generate close to 50% of our gross domestic product (GDP).

Accepted Answer

Small businesses play a significant role in the U.S. economy and generate close to 50% of our gross domestic product (GDP).

Question 4

Small businesses do all of the following except ________

Accepted Answer

Small businesses are known for creating jobs, sparking innovation, and providing opportunities for many people, including women and minorities. However, it is not true that small businesses develop very few patents as many small businesses do file for and receive patents for their unique products and ideas.

Question 5

The past two decades have seen a _____ in the number of businesses owned by women and minorities.

Accepted Answer

The phrase "substantial increase" means that there has been a significant and noteworthy rise in the number of businesses owned by women and minorities over the past two decades.

Question 6

Although the split between those working in small companies and those working in big companies is about even, large companies:

Accepted Answer

Large companies typically have more stable operations and resources to weather economic downturns, which leads to less frequent layoffs. Additionally, large companies often have more structured hiring processes and may take longer to fill positions, resulting in hiring less frequently than small companies.

Question 7

The success of small businesses in fostering creativity has gone unnoticed by big businesses.

Accepted Answer

Big businesses often look to small businesses for innovation and creativity, adopting their practices or acquiring them to foster their own growth and adaptability.

Question 8

Small business output in the United States generates about _____ of our gross domestic product.

Accepted Answer

According to the Small Business Administration, small businesses (defined as those with fewer than 500 employees) account for about half of GDP in the United States. This includes both the output of small businesses themselves as well as their contributions to larger supply chains.

Question 9

_____ companies provide valuable services to _____ companies by acting as sales agents for their products.

Accepted Answer

In the context of the sentence, it is likely that small companies are acting as sales agents for the products of larger companies. This is a common business model where smaller companies can earn a commission on sales while larger companies benefit from expanded reach and distribution of their products. Choices A, C, and D do not accurately reflect the relationship described in the sentence.

Question 10

A company is considered large if it _____.

Accepted Answer

The size of a company is usually determined by its market share and dominance in its field. A company that is considered large is one that has a dominant position in its field of operation.

Question 11

More than three-fourths of all U.S.adults are either self-employed or work for small businesses.

Accepted Answer

Most U.S. adults work for larger employers, not as self-employed individuals or for small businesses. Small businesses do employ a significant portion of the workforce, but not more than three-fourths.

Question 12

Small businesses like Gonzalez's account for about 50 percent of the U.S.gross domestic product each year.

Accepted Answer

According to the U.S. Small Business Administration, small businesses account for about 44 percent of the U.S. gross domestic product each year.

Question 13

_____ tend to offer environments that appeal to individuals with the talent to invent new products or improve the way things are being done.

Accepted Answer

Small businesses often have a more flexible and innovative culture compared to larger corporations, which can be attractive to individuals looking to invent new products or processes. Small businesses also tend to have less bureaucracy and fewer layers of management, allowing for a greater freedom to experiment and take risks. Additionally, small businesses often rely on the unique skills and knowledge of their employees, providing them with opportunities to innovate and contribute to the company's success.

Question 14

The majority of small businesses are owned by ____.

Accepted Answer

According to data from the Small Business Administration, the majority of small businesses are owned by white males. In fact, as of 2018, white males accounted for 58% of all small business owners in the United States.

Question 15

The Small Business Administration defines a small business as one that is _____.

Accepted Answer

The Small Business Administration defines a small business as one that is not dominant in its field, regardless of whether it is a for-profit or not-for-profit organization, and may have more than 100 employees. Option A is incorrect because a not-for-profit organization can also be considered a small business. Option C is incorrect because a small business can have more than 100 employees. Option D is incorrect because a small business cannot be owned and operated by a multinational company.

Question 16

Scenario-Based
Mary Gonzalez recently expanded her chain of flower shops.As the only small flower shop located in major airports in the Midwest, she has a unique operation.She has 72 employees in 30 shops, and although her company isn't dominant in its industry, her shops are busy year round.To accommodate her unique clientele, Mary developed the idea of packaging flowers in small waterproof pots that won't leak either in the airport or aboard planes.
-Gonzalez's company should be considered a small business.

Accepted Answer

The scenario describes Mary Gonzalez's chain of flower shops as a small business with 72 employees in 30 shops.

Question 17

Many small firms provide _____ services to large firms-that is, they hire themselves out to help with special projects or to handle certain business functions.

Accepted Answer

The word "outsourcing" is used specifically to describe the process of hiring an external firm or individual to handle certain business functions. The other answer choices do not accurately describe this type of business arrangement.

Question 18

Gonzalez's shop managers regularly think of new ways to market their products, improve their quality, keep them fresher, and meet consumer needs.In this respect, Gonzalez's business is unusual among small businesses.
Essay Discussion

Accepted Answer

Many small businesses regularly innovate and adapt to meet consumer needs, improve product quality, and market effectively. This is not unusual for small businesses aiming to stay competitive.

Question 19

Gonzalez's business is not a small business because it's unique in the flower-shop industry.

Accepted Answer

The size of a business is typically determined by its revenue, number of employees, and market share, not by its uniqueness in the industry. Mary Gonzalez's operation, with 72 employees and 30 shops, could still be considered a small business depending on the specific industry standards and definitions.

Question 20

Because Gonzalez's company is independently operated, the Small Business Administration would consider it a large business.

Accepted Answer

The fact that Gonzalez's company is independently operated does not automatically make it a large business. The Small Business Administration considers the size of a business based on factors such as number of employees, annual revenue, and industry.

Quiz 2: Entrepreneurship