Question 1

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

Accepted Answer

According to various studies and surveys, the majority of part-time businesses are based in the home, as it provides lower overhead costs, convenience, and flexibility for the owner.

Question 2

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

Accepted Answer

Crafting a business plan involves projecting the financial performance of the business, including revenue, expenses, and profit or loss. This can give a clear picture of the financial situation and help identify areas that may need improvement.

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.

Accepted Answer

Cannibalizing, in a business context, typically refers to a situation where a company's new product or service eats into the sales of its existing offerings, not to the blending of work between a part-time business and a full-time job.

Question 4

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

Accepted Answer

There are multiple key groups outside one's business with which one must deal, including customers, investors, suppliers, partners, and the community, among others.

Question 5

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

Accepted Answer

Outsourcing refers to the practice of hiring external firms or individuals to perform tasks, handle operations, or provide services that are either difficult to manage or are outside the company's core competencies. This does not necessarily imply having power over those external entities beyond the terms of the contract.

Question 6

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

Accepted Answer

This statement is not accurate. The e-commerce industry has continued to grow and is projected to reach $4.2 trillion in global sales by the end of 2020 according to eMarketer. While there may be some leveling off in certain markets, overall the industry is still experiencing growth.

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.

Accepted Answer

The statement is true. The more time and energy spent on preparing a small-scale part-time business, the longer it takes to start making a profit. This is because a lot of effort goes into planning, organizing, and setting up the business, and it may take some time before customers become aware of the business and start buying its products or services.

Question 8

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

Accepted Answer

Stand retailing typically requires less capital and time investment compared to traditional retail stores, as it often involves smaller setups and lower overhead costs.

Question 9

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

Accepted Answer

Covenants are private legal agreements or restrictions related to the use of land and buildings, often established by homeowners associations or developers, not government specifications. Government land use regulations are typically referred to as zoning laws.

Question 10

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

Accepted Answer

Part-time employment typically refers to working fewer hours than a full-time job, often less than 35 hours a week, not 50.

Question 11

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

Accepted Answer

Many entrepreneurs start out working on their new business while still employed full time elsewhere. This allows them to test the waters and see if their business idea has potential, while also maintaining a steady income.

Question 12

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

Accepted Answer

Pricing can be a significant challenge for part-time businesses as they must balance competitive pricing with covering costs and achieving profitability, often with limited resources and market presence compared to full-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.

Accepted Answer

Having a website allows small businesses to establish an online presence, provide information to potential customers, and build credibility. Even if the website is not used for actual sales, it can still be a valuable tool for marketing and reaching a wider audience.

Question 14

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

Accepted Answer

Intellectual property refers to creations of the mind that include inventions, literary and artistic works, symbols, and designs.

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.

Accepted Answer

The statement accurately presents the two major questions that arise when pursuing a part-time entrepreneurship.

Question 16

Delegation is not for everyone and every situation.

Accepted Answer

Delegation requires a certain level of trust, competence, and willingness to share responsibilities. Some tasks or situations may not be suitable for delegation, and some individuals may not be ready or willing to delegate. Therefore, delegation is not always appropriate 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.

Accepted Answer

With consignment approaches, the owner does not have to be fully involved in the sales process as the selling is done on their behalf by the consignment seller. This allows them to focus on other aspects of their business or even have a separate full-time job.

Question 18

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

Accepted Answer

While government regulations may play a role in the decision to become a full-time entrepreneur, it is not the key question. Other factors such as financial stability, market demand, and personal goals may be more important considerations.

Question 19

Aggrandizing refers to taking business away from your employer.

Accepted Answer

Aggrandizing actually refers to the act of increasing your own power, wealth, or status, often at the expense of others, rather than taking business away from your employer.

Question 20

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

Accepted Answer

Moonlighting refers to a person working on a part-time job in addition to their regular job.

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