Question 1

The ____ stage of growth involves the owner running the business alone.

Accepted Answer

The Existence stage is where the business is just starting, and the owner typically runs the business alone, focusing on acquiring customers and delivering the product or service.

Question 2

According to an NFIB study,small business owners cited what as the most important problem that they face?

Accepted Answer

The NFIB study identified the cost of health insurance as the most significant issue for small business owners, reflecting concerns over rising premiums and healthcare expenses.

Question 3

The ____ stage of growth involves the owner hiring other people.

Accepted Answer

In the Survival stage, the business has grown enough that the owner needs to hire additional employees to manage increased operations and workload.

Question 4

According to Jim Kouzes,the foundation of small business leadership is

Accepted Answer

Jim Kouzes emphasizes that credibility is the foundation of leadership, as it builds trust and respect, which are essential for effective leadership in any context, including small businesses.

Question 5

Sandy owns and manages a retail establishment located near a busy waterfront.Her employees often describe Sandy as someone who believes in herself and is committed to accomplishing the company's vision.Sandy's style of leading can best be described by which leadership attribute?

Accepted Answer

Sandy's belief in herself and commitment to the company's vision are indicative of self-confidence and dependability, which are key leadership attributes.

Question 6

The ____ approach to determining a company's worth involves the cost to recreate the operating assets of the business.

Accepted Answer

The asset-based approach calculates a company's worth based on the cost to recreate its operating assets, focusing on the value of its tangible and intangible assets.

Question 7

Bob Boyd is developing an exit strategy for his sporting goods business,since he plans to retire within the next three years.Bob knows that one of the company's greatest strengths is that there is a core group of motivated employees who have been with the company for years.Based on this information,which exit strategy would be the best option for Bob?

Accepted Answer

Selling to a key employee or group of employees leverages the strength of having a motivated core group who are familiar with the business, ensuring continuity and preserving the company's legacy.

Question 8

The best stage of growth is ____.

Accepted Answer

Each stage of growth has its own challenges and opportunities, and the best stage depends on the specific goals and circumstances of the business.

Question 9

One of Brandon's primary roles on the production line is to continuously determine if quality control standards are being met.This relates to which managerial role?

Accepted Answer

The role of continuously determining if quality control standards are being met aligns with the "Monitor" role, which involves overseeing operations and ensuring that everything is functioning as expected.

Question 10

The ____ approach to determining a company's worth involves looking at what others have paid for comparable businesses.

Accepted Answer

The market approach determines a company's worth by comparing it to similar businesses that have been sold recently, using market data to estimate value.

Question 11

The ____ stage of growth involves the owner adding levels of supervision to lead departments or divisions.

Accepted Answer

The answer of The ____ stage of growth involves the...

Question 12

During the ____ stage of business growth,the greatest concerns are to consolidate and control the finances and to professionalize the organization.

Accepted Answer

During the Resource Maturity stage, businesses focus on consolidating and controlling finances and professionalizing the organization to ensure stability and efficiency.

Question 13

According to BusinessWeek Online,which of the following is a leadership trend for 2010?

Accepted Answer

Practicing social responsibility was identified as a leadership trend for 2010, reflecting the growing importance of ethical practices and corporate responsibility in business leadership.

Question 14

The person with a vision that cannot be put into action is a/an ____.

Accepted Answer

A dreamer is someone who has visions or ideas but may not necessarily have the means or ability to put them into action.

Question 15

Which of the following was not listed as a possible small business exit strategy?

Accepted Answer

Turning a small business into a large business is not an exit strategy; it's a growth strategy. Exit strategies typically involve transferring ownership or control, such as selling the business or going public.

Question 16

Gina's Pizza has been in operation for three years,and the business has recently expanded to include multiple locations with a head manager at each location.Gina's Pizza is most likely in which business growth stage?

Accepted Answer

Gina's Pizza is in the "Takeoff" stage, characterized by rapid growth and expansion, such as opening multiple locations and appointing head managers.

Question 17

Signs of growing pains include all but which of the following?

Accepted Answer

Growing pains in a business typically refer to operational and management challenges, such as delays, rising costs, and chaos, rather than physical space issues like building size.

Question 18

Wendy has recently been approached by a Rita to sell her art gallery.Rita has been in the art business for over twenty years,but has never owned her own gallery.She tells Wendy that this has been one of her dreams since she was young.If Wendy sells the gallery to Rita,which exit option will she adopt?

Accepted Answer

The answer of Wendy has recently been approached by a...

Question 19

Within the ____ role,the manager needs to identify fresh new ideas and innovations.

Accepted Answer

The Entrepreneur role involves the manager seeking out new opportunities, ideas, and innovations to improve the organization.

Question 20

Connie's consulting business has grown steadily over the course of four years.However,Connie recently has found that some of the jobs are not being completed on time,and there is more stress due to a greater reliance on partners and employees.Connie is most likely experiencing which of these?

Accepted Answer

Connie is experiencing "growing pains," which occur when a business expands and faces challenges such as increased stress, reliance on others, and difficulties in maintaining efficiency and meeting deadlines.

Quiz 16: Professional Small Business Management