Deck 1: Understanding Small Business

Question 1

Small businesses play an important role in the economic growth of any country

Answer 1

True

Question 2

Small businesses in U.S. employ about half of America's private-sector employees

Answer 2

True

Question 3

Most small businesses in U.S. are single-person firms with no employees

Answer 3

True

Question 4

A small business is defined as one that is independently owned, operated, and is nationally dominated in its field of operation; and has less than 150 employees

Question 5

To classify a firm as a small business, the SBA counts employment at the firm level

Question 6

According to the Small Business Administration, a small business is the one that has less than 50 employees

Question 7

Small businesses file more patents per employees than large businesses

Question 8

The minimum legal age requirement for starting a new business in U.S is 18 years

Question 9

Small firms and large corporations have a symbiotic relationship

Question 10

The Paycheck Protection Program (PPP) is a loan designed for large corporations to
provide compensation to their executives

Question 11

Businesses recognized as large are eligible for SBA's loan programs

Question 12

According to the text, entrepreneurship involves identifying and pursuing new opportunities to introduce novel goods and services to the market

Question 13

Small businesses and entrepreneurship are complementary

Question 14

Owners of lifestyle businesses do not need to improve products and operations

Question 15

The large firms that stop growing at some point are known as whales

Question 16

The term 'gazelle' is used for those entrepreneurial small firms that have high rates of growth

Question 17

A credit policy that is too lenient can cause collection and cash-flow problems later for small businesses

Question 18

Entrepreneurship is a born trait and cannot be learned

Question 19

One should start a business ONLY when the demand for its goods or services is high

Question 20

A growth mindset stipulates that one's skills and qualities are mutable

Question 21

One of the advantages of running your own business is that you get to do what you love to do

Question 22

US ranks higher than Canada on global indicators of commercial entrepreneurship

Question 23

In U.S., the desire to become a social entrepreneur is strongest for people between the age of 25 and 45

Question 24

Facebook and Insomnia Cookies are examples of businesses started by student entrepreneurs

Question 25

Silver entrepreneurship is about students running their own business

Question 26

Small businesses are important because they _________

A) Play an important role in the economic growth
B) Have happy employees
C) Are willing to take risks
D) Have experienced managers

Question 27

Which of the following helps small businesses with assistance, loans, and federal contract procurement?

A) The Business Lounge
B) International Business Brokers Association (IBBA)
C) Small Business Administration (SBA)
D) Presidents Association (PA)

Question 28

What is NOT true about the U.S. Small Business Administration (SBA)?

A) It is a federally funded agency
B) It provides assistance and loans to small businesses
C) It helps small businesses with federal contract procurement
D) It is a local agency to promote interest of large corporations

Question 29

Which of the following is true about small businesses?

A) Are eligible for SBA's financial assistance programs
B) Are not eligible to sell to the set-aside programs of the federal government
C) Are not eligible for grants through the government
D) Are not eligible for SBA's education and training programs

Question 30

The SBA's standards for small businesses are based on _______

A) Number of employees and average annual revenues
B) Average annual revenues and industry
C) Number of employees and industry
D) Number of employees, average annual revenues, and industry

Question 31

According to the SBA, most manufacturing companies with _______, and many non-manufacturing businesses with _________ qualify as a small business

A) 500 employees or fewer; average annual receipts under $7.5 million
B) average annual receipts under $7.5 million; 500 employees or fewer
C) 1500 employees; fewer affiliates
D) 500 employees at firm level; affiliates

Question 32

According to the SBA, small businesses file _______patents per employees than large businesses

A) Less
B) Equal
C) More
D) Zero

Question 33

Katie has recently opened a new beauty salon. You have been hired to advise Ms. Katie with her business. Katie plans to hire 35 employees and needs loans to buy beauty supplies, new equipment, and pay salaries. Katie's business is an example of

A) A large corporation
B) A family business
C) A small business
D) None of the above

Question 34

_________refers to the effective administration of a small firm with the goals of survival and improvement

A) Development program
B) Performance management
C) Human resource management
D) Small business management

Question 35

Which of the following is NOT a common form of misconduct in small firms?

A) Lying to customers
B) Lying to employees
C) Anticompetitive practices
D) Treating all employees with respect

Question 36

The ___________ is a metaphor used in business to suggest that a firm needs to constantly think of improving, even to remain where it is at a given time

A) Red queen effect
B) Gazelles effect
C) Elephants effect
D) Blue queen effect

Question 37

When small firms stop ________, it's the beginning of the end

A) Hiring
B) Training
C) Improving
D) Caring

Question 38

What is true about small businesses and entrepreneurship?

A) All small businesses behave entrepreneurially
B) All entrepreneurial firms are small businesses
C) All entrepreneurial firms are large corporations
D) Some small firms continue to behave entrepreneurially over time

Question 39

Which of the following is a reason for the failure of small firms?

A) Adequate understanding of the market and its future trends
B) A carefully designed credit policy
C) Hoarding too much inventory
D) Creating a desirable place to work

Question 40

Which of the following is NOT a reason for the failure of small firms?

A) Inadequate understanding of the market and its future trends
B) Extending too much credit
C) Hoarding too much inventory
D) Creating a desirable place to work

Question 41

________refers to the practice of large firms seeking to grow through entrepreneurial actions and behaviors

A) Entrepreneurship
B) Corporate entrepreneurship
C) Silver entrepreneurship
D) Social entrepreneurship

Question 42

________refers to a firm's inability to grow despite intentions and desire for growth

A) Dwarfism
B) Red queen effect
C) Lack of customer service
D) Lack of management skills

Question 43

According to Dun & Bradstreet, financial research firm, a business failure is defined as :

A) When a firm closes due to bankruptcy
B) When a firm chooses for foreclosure
C) Voluntary withdrawal of the firm with a financial loss to a creditor or investor
D) All of the above answer choices are correct

Question 44

Which of the following is a motivation for starting a new business?

A) Independence reward
B) Learning reward
C) Income reward
D) All of the above

Question 45

Which of the following is NOT a form of entrepreneurship?

A) Student entrepreneurship
B) Speculator entrepreneurship
C) Silver entrepreneurship
D) Women entrepreneurship

Question 46

An entrepreneurial team refers to starting or managing a business

A) By two or more individuals
B) After retirement
C) By a group of people from the Small Business Administration
D) By a young individual

Question 47

_________was America's first self-made millionaire female business owner, and she was in the _________industry

A) Katie Walker; manufacturing
B) Madam C. J. Walker; hair care
C) Sarah Bennett; media
D) Sarah Smith; yogurt