Deck 1: Small Business: Its Opportunities and Rewards

Question 1

Lifestyle or part-time firms typically provide enough profit or salary to supplement an income but usually not enough on which to live.

Answer 1

True

Question 2

Ninety percent of all new businesses fail within two years.

Answer 2

False

Question 3

Self-employed persons are not referred to as entrepreneurs.

Answer 3

False

Question 4

Flexibility rewards are the most rapidly growing type of reward.

Question 5

One of the key elements of the BRIE model is a person's intentions to start a business.

Question 6

The most frequently occurring element of the BRIE model is intention.

Question 7

High-growth ventures and big businesses generally do not succeed without small businesses offering supporting services.

Question 8

Entrepreneurship levels are very high in efficiency-driven economies.

Question 9

Small businesses focus on effectiveness,whereas high-growth ventures focus on efficiency.

Question 10

Small-scale entrepreneurs are only allowed to trade in sale of goods and not in trades of service.

Question 11

Traditional small businesses' schedules are defined by the owners' needs.

Question 12

Using low-cost or free techniques to minimize cost of doing business is referred to as bootstrapping.

Question 13

The disadvantage of the BRIE model is that it does not mention the management of resources.

Question 14

The U.S.government agency that helps people start small businesses is the U.S.Department of Commerce.

Question 15

High-growth ventures are also known as main street businesses.

Question 16

In the BRIE model,exchange refers to moving resources,goods,or services to others,in exchange for money or other resources.

Question 17

Entrepreneurs are exclusively found in farming-related occupations.

Question 18

Truly entrepreneurial businesses are characterized by imitativeness in their products,services,or business models.

Question 19

Small businesses start small but are intended to grow rapidly,often requiring a team of partners.

Question 20

Flexibility rewards refer to the money made from owning a business.

Question 21

Which of the following is true of a franchise?

A) It is the international term for all small businesses.
B) It is a type of novelty organization.
C) It is an organization that provides loans to start small businesses.
D) It is a prepackaged business bought,rented,or leased from a company.

Question 22

The primary focus of corporate entrepreneurship is creating new civic organizations which are financially self-sufficient.

Question 23

Small businesses differ from high-growth ventures in that in small businesses:

A) the focus is on effectiveness rather than efficiency.
B) the preferred source of funding is the owner's own money rather than other people's money.
C) the delegation of responsibilities is easy and necessary rather than difficult.
D) the metastrategy is for novelty rather than imitation.

Question 24

Which of the following is true of a small business?

A) Its preferred funding source is other people's money.
B) It sells more when it is facing bankruptcy.
C) It considers sales as more important than marketing.
D) It focuses more on effectiveness than on efficiency.

Question 25

A business owned by an individual or a little group is referred to as a(n):

A) corporate chain.
B) conglomerate.
C) concern.
D) independent small business.

Question 26

Which of the following is a difference between a small business and a high-growth venture?

A) For a small business,the preferred funding source is other people's money,whereas for a high-growth venture,it is the owner's own money.
B) For a small business,the personal control preference is to involve others,whereas a high-growth venture prefers to retain autonomy.
C) A small business focuses on effectiveness,whereas a high-growth venture focuses on efficiency.
D) A small business grows when necessary,whereas a high-growth venture grows when possible.

Question 27

High-growth ventures differ from small businesses in that in high-growth ventures:

A) the focus is on efficiency rather than effectiveness.
B) the preferred source of funding is the owner's own money rather than other people's money.
C) the human resource system is personalized rather than professionalized.
D) the limitation of growth is dictated by market response rather than the owner's loss of control.

Question 28

High-growth ventures:

A) use imitation as their metastrategy.
B) start small but are intended to grow rapidly.
C) cannot include a team of partners.
D) do not delegate tasks.

Question 29

Which of the following describes the significance of an overall growth strategy?

A) It represents a driver of the variety of entrepreneurship.
B) It allows for one small business enterprise to incorporate in multiple states at the same time.
C) It provides the owner a stake in the family business.
D) It helps buyers to get familiar with new products.

Question 30

Small businesses are usually:

A) imitative in nature.
B) characterized by the novelty of their products.
C) the same as high-growth ventures.
D) not affected by market fluctuations.

Question 31

A person who becomes an owner by inheriting or getting a stake in a family business is known as a _____.

A) founder
B) franchisor
C) heir
D) serial entrepreneur

Question 32

In lifestyle firms:

A) success is defined by sales of between $100,000 and $1,000,000.
B) schedules are defined by customer needs.
C) the income generated usually provides a living for the owner and family.
D) growth tends to quickly level off.

Question 33

Which of the following is a characteristic of a small business?

A) Source of funding is primarily other people's money
B) Focus is on efficiency
C) Professionalized approach to human resource
D) Delegation is essential

Question 34

A business run by the individual who owns it is referred to as a(n)_____.

A) franchise
B) owner-managed firm
C) professionally-owned business
D) novelty firm

Question 35

Which of the following is an attribute of a high-growth venture?

A) Its preferred funding source is the owner's own money.
B) Its metastrategy is imitation.
C) It grows when necessary.
D) It considers delegation essential.

Question 36

Which of the following is a characteristic of a lifestyle firm?

A) It starts small and grows very rapidly to become a big business.
B) It represents about 20 percent of all businesses.
C) It typically has sales of $25,000 a year or less.
D) It aims to achieve growth rates of 25 percent or more a year.

Question 37

The _____ is a U.S.government agency that helps people start a business and also provides them support and advocacy.

A) Small Business Administration
B) U.S.Department of Business Development
C) U.S.Department of Commerce
D) U.S.Entrepreneurial Administration

Question 38

Truly entrepreneurial businesses are characterized by:

A) the franchise they are associated with.
B) the degree to which their products are imitative.
C) the novelty in their products,services,or business models.
D) the ease with which their product is accepted by the buyers.

Question 39

Which of the following is true of a part-time firm?

A) It starts small and stays very small.
B) It has a continuous growth.
C) Its success is defined by annual profits of $1,000,000.
D) It aims to achieve growth rates of 25 percent or more a year.

Question 40

Which of the following is true of a high-growth venture?

A) It considers sales as more important than marketing.
B) Its metastrategy is novelty.
C) It focuses more on efficiency than on effectiveness.
D) It does not allow for easy delegation of work or responsibilities.

Question 41

Which of the following categories does the majority of small businesses fall under?

A) High-growth ventures
B) High-performing small businesses
C) Lifetime/Part-time firms
D) Traditional small business

Question 42

Which of the following is a reward that is rarely mentioned by entrepreneurs?

A) To have a chance to build great wealth
B) To have greater flexibility for personal and family life
C) To continue a family tradition
D) To develop an idea for a product

Question 43

Bootstrapping refers to:

A) funding a business online through the collective involvement of others who provide loans.
B) buying,renting,or leasing a prepackaged business from another company.
C) inheriting or being given a stake in a family business.
D) using low-cost or free techniques to minimize the cost of doing business.

Question 44

The ability of business owners to structure their lives in the way that best suits their needs refers to:

A) flexibility rewards.
B) family rewards.
C) growth rewards.
D) wealth rewards.

Question 45

Which of the following is a characteristic of a high-growth venture?

A) It pursues low levels of professionalization.
B) It levels off after operations settle into a consistent,money-making pattern.
C) It aims to achieve growth rates of 25 percent or more a year.
D) Its success is defined by sales of between $100,000 and $1,000,000 annually.

Question 46

_____ are the smallest full-time business.

A) High-performing small businesses
B) Traditional small businesses
C) High-growth ventures
D) Lifestyle businesses

Question 47

_____ tend to level off after success defined by sales of between $100,000 and $1,000,000,depending on the industry.

A) Lifestyle firms
B) Traditional small businesses
C) High-performing small businesses
D) High-growth ventures

Question 48

Which of the following is true of a traditional small business?

A) It is usually a multi-site business.
B) It generally has sales between $100,000 and $1,000,000 depending on the industry.
C) It defines its schedules based on customer needs.
D) It follows a continuous growth curve.

Question 49

Financing a business online through the collective involvement of others who provide donations,loans,or investments is referred to as _____.

A) crowdfunding
B) bootstrapping
C) microfinancing
D) crowdsourcing

Question 50

Which of the following is a reward universally mentioned by entrepreneurs?

A) Peer admiration
B) Personal growth
C) Political power
D) Industry recognition

Question 51

Which of the following is a myth about small businesses?

A) That failed entrepreneurs can succeed if they try again
B) That a small business will never have enough financing
C) That students have skills to start small businesses
D) That small businesses can start during recession

Question 52

Lifestyle firms,traditional small businesses,and high-performing small businesses are often called _____.

A) main street businesses
B) Wall Street businesses
C) high-growth ventures
D) universal businesses

Question 53

A traditional small business generally has sales of between:

A) $100,000 and $1,000,000.
B) $100,000 and $200,000.
C) $25,000 and $100,000.
D) $50,000 and $80,000.

Question 54

Tina runs her consultancy business from her home.Working from home allows her to set her own schedule and take time off at her convenience so that she can be with her family.The fact that Tina gets more time with her family can be categorized as ______ reward.

A) income
B) flexibility
C) growth
D) credit

Question 55

Which of the following is true of a high-performing small business?

A) It often grows through multiple locations.
B) It aims to achieve growth rates of 25 percent or more a year.
C) It has sales of more than $1 million.
D) It has low levels of professionalization.

Question 56

Which of the following is true of the growth of a typical traditional small business?

A) It tends to quickly level off after the owners operate long enough to learn the basics of making money.
B) It levels off after operations settle into a consistent,money-making pattern generating income to provide a living for the owner.
C) It grows at rates between 5 to 15 percent a year.
D) It grows at rates of 25 percent or more a year.

Question 57

Which of the following is a characteristic of a traditional small business?

A) It is often a one-site business.
B) It follows a continuous growth curve.
C) It defines its schedules based on the owner's needs.
D) It generally has sales between $100,000 and $1,000,000 depending on the industry.

Question 58

Which of the following rewards refer to the money made from owning a business?

A) Growth rewards
B) Flexibility rewards
C) Income rewards
D) Performance rewards

Question 59

_____ is a reward universally mentioned by entrepreneurs.

A) Industry recognition
B) Peer admiration
C) Political power
D) Work flexibility

Question 60

_____ rewards are those which people get from facing and beating or learning from challenges.

A) Recognition
B) Flexibility
C) Income
D) Growth

Question 61

According to the BRIE model,which of the following is true of a resource?

A) It includes a business name or government registration.
B) It refers to moving goods or services to others for money.
C) It is the most frequently occurring element of the BRIE model.
D) It includes the product or service to be offered.

Question 62

According to the BRIE model,which of the following sets a firm off from the buying or selling or bartering done casually by nonmerchants?

A) Resources
B) Boundary
C) Intention
D) Exchange

Question 63

Which of the following elements of the BRIE model represents the desire to start a business?

A) Intention
B) Boundary
C) Exchange
D) Resources

Question 64

A nation where the major forces for jobs,revenues,and taxes come from farming or extractive industries like forestry,mining,or oil production is a(n):

A) factor-driven economy.
B) efficiency-driven economy.
C) innovation-driven economy.
D) competency-driven economy.

Question 65

Mandarin In Town,a Chinese restaurant,opened recently in Burnsville,Minnesota.People from all over the town flocked to Mandarin to find out how good it was.This gave a big boost to the restaurant's initial business,but it caused the other restaurants in the area to lose business temporarily.The way in which Mandarin in Town hurt existing restaurants in Burnsville is an example of:

A) creative destruction.
B) service distortion.
C) innovative disruption.
D) crowdsourcing.

Question 66

According to the U.S.Small Business Administration,small businesses generate _____ times the number of patents per employee than do big businesses.

A) 35.5
B) 2.5
C) 16.5
D) 50.5

Question 67

In the BRIE model,a business name or government registration,a phone or e-mail address dedicated to the business,or a specific location for the firm in a home,commercial space,or on the Internet represents:

A) exchange.
B) resource.
C) boundary.
D) intention.

Question 68

According to the BRIE model,which of the following is an element that is necessary to start a business?

A) Boundary
B) Recognition
C) Efficiency
D) Income

Question 69

A nation where industrialization is the major force providing jobs,revenues and taxes,and where minimizing costs while maximizing productivity is a major goal is a(n):

A) factor-driven economy.
B) efficiency-driven economy.
C) innovation-driven economy.
D) effectiveness-driven economy.

Question 70

According to the BRIE model,_____ sets up a business as a firm.

A) intention
B) exchange
C) franchise
D) boundary

Question 71

In factor-driven economies:

A) entrepreneurship levels are in the middle range.
B) entrepreneurship levels are very high.
C) entrepreneurship levels are very low.
D) entrepreneurship is not given any consideration.

Question 72

John owns a small business that does computer servicing.Which of the following would represent boundary as mentioned in the BRIE model in John's computer servicing business?

A) The employees that work under John
B) The office in which John works
C) The money earned by John from the business
D) The desire to expand the business to writing software

Question 73

Anna helps brides-to-be choose wedding gowns that best suit their requirements and budget,and also helps them with where they can find the right dress.She has made her home her virtual office;she does not require external financing.Anna is using _____ to run her small business.

A) crowdfunding
B) franchising
C) bootstrapping
D) crowdsourcing

Question 74

In efficiency-driven economies:

A) entrepreneurship levels are in the middle range.
B) entrepreneurship levels are very high.
C) entrepreneurship levels are very low.
D) entrepreneurship is not given any consideration.

Question 75

Which of the following is the most frequently occurring element of the BRIE model?

A) Intention
B) Boundary
C) Exchange
D) Resources

Question 76

In innovation-driven economies:

A) entrepreneurship levels are in the middle range.
B) entrepreneurship levels are very high.
C) entrepreneurship levels are lower compared to factor-driven economies.
D) entrepreneurship is not given any consideration.

Question 77

In terms of new jobs,which of the following is true of a small business?

A) It does not employ people looking for part-time work.
B) It is of no importance to existing jobs.
C) It offers jobs to people with atypical work histories.
D) It pays taxes on behalf of the people it hires.

Question 78

According to the BRIE model,which of the following falls under the boundary category?

A) The financial resources of a company
B) The desire to start a business
C) An e-mail address of the company
D) A product or service offered by the company

Question 79

Innovation-driven economies:

A) are those where entrepreneurship becomes a key way to build the middle class.
B) are nations where industrialization is becoming the major force providing jobs,revenues,and taxes.
C) are focused on high-value-added manufacturing but are marked by a very large service sector.
D) are those where entrepreneurship is essential to build personal wealth and break the cycle of low-wage jobs.

Question 80

The way that newly created goods,services,or firms hurt existing goods,services,or firms is referred to as:

A) benchmarking.
B) creative destruction.
C) service distortion.
D) crowdsourcing.