Question 1

After Kate graduated from college,her grandfather created a bookkeeping position for her in his furniture retail business.Her older brother is in charge of purchasing inventory for the stores,yet often the store runs out of popular furniture or become overstocked with pieces that must be marked down to be sold.Kate is confident that her brother is more suited for handling accounting and finance,and she has a pulse on what sells and how much sells.Although she has spoken with her grandfather about it a couple of times,he seems reluctant to change.As the founder of the business,he may:

Accepted Answer

The grandfather's reluctance to change may be influenced by his personal relationship with Kate as his granddaughter. He may feel guilty or uncomfortable reassigning her or removing her from the position he created for her, even if it is not good for the business. The founder of a family business may also prioritize family loyalty and relationships over business performance, believing that family comes first.

Question 2

After several years of volunteering to play the piano and sing at a local nursing home,Callie decided the time was right to tap into the growing elder care market.She started Music and Memories,Inc. ,a nonprofit corporation that would hire local talent to perform her own music productions directed toward this market.In order to write and produce several productions each year,Callie needed start-up funds.An instructor at the local community college suggested that she begin by _____________,because this effort would serve as her "calling card" for interested investors,as well as government grant applications that Callie might pursue.

Accepted Answer

Starting with a well-prepared business plan is crucial for any new business, especially when seeking investors and government grants. A business plan outlines the mission, goals, financial projections, and strategies for success, and will help Callie secure the necessary start-up funds for Music and Memories, Inc. Choices B and C are important steps in the production process, but will come after the business plan is in place. Developing a list of start-up costs is also important, but creating a solid business plan should be the first priority.

Question 3

Ben got a phone call from one of his regular customers asking if he had time to repair a couple of broken sprinkler heads on the customer's underground sprinkling system.Although it was already 6:00 p.m.and Ben had put in a full day of work,he turned his car around and headed for the customer's house.As a small business owner,Ben demonstrates:

Accepted Answer

Ben's willingness to respond to his customer's needs after a full day of work demonstrates his ability to adapt and provide excellent customer service, a crucial aspect of running a successful small business. It is not necessarily indicative of needing additional cash flow, difficulty finding employees, or overpricing services.

Question 4

After retiring as a telecommunications executive,Chad joined SCORE.As a SCORE counselor Chad will:

Accepted Answer

As a SCORE counselor, Chad will provide consulting services to small businesses for free. SCORE is a nonprofit organization that provides free business advice and mentoring services to small business owners and entrepreneurs.

Question 5

Justin's favorite part of Introduction to Business class was marketing.As he brainstorms about starting a car detailing business,he recalls that it is important to:

Accepted Answer

Justin should analyze the market before making the service available. This will help him understand his target market, their needs, preferences, and behavior. It will also help him identify any potential competitors, and opportunities for growth and differentiation. This information will ultimately inform the development of his marketing strategy and tactics.

Question 6

One of the hurdles small businesses face when deciding to export is:

Accepted Answer

Financing is often difficult to find for small businesses looking to export. They may not have the resources to cover the costs of shipping, taxes, and other expenses. This can be a major hurdle for small businesses looking to expand their market internationally.

Question 7

Chris is an angel investor.This means that he:

Accepted Answer

An angel investor is someone who invests their own money in new businesses with potential for growth, in exchange for equity in the business. They hope for a good return on their investment if the business becomes successful, either through an IPO or acquisition. This is a common way for startups to raise capital in their early stages.

Question 8

Ming's three employees have been with her since she started Employment Recruiters,Inc. ,nearly 10 years ago.As she contemplates the staffing for her new branch office,she senses that none of these three are ready to manage the office.Faced with this difficult situation,she should:

Accepted Answer

While it may be tempting to reward the loyalty and commitment of her long-time employees, Ming's priority should be the success of her business. If none of the current employees are ready for the management position, it would be best to hire someone new who is qualified for the job. It is important to have strong and capable leadership in each branch for the overall success and growth of the company.

Question 9

The size of the world market is:

Accepted Answer

The current estimated global population is around 7 billion people, meaning that the world market would be around that size as well. The other choices are not accurate representations of the size of the world market.

Question 10

Bing came to the U.S.on a swimming scholarship.After a few months of frustration with trying to find swim goggles like he used in his native country,he started a web site that offered specialty goggles for swimming,skiing,and snowboarding.Before launching the web site and filling orders,Bing spent a few months going to swim meets and gathering preferences about goggles from other swimmers.Bing's actions:

Accepted Answer

The answer of Bing came to the U.S.on a swimming...

Question 11

As a small business owner,Tanika can't afford to provide her employees with the high wages and benefits offered by big corporations.One way to retain her employees and create a high level of motivation would be to:

Accepted Answer

Empowering employees to develop their own ideas can make them feel valued and invested in the success of the business. This can lead to increased motivation and retention, even if the wages and benefits are not as high as larger corporations. Constantly reminding employees that they are fortunate to have a job (A) can be demoralizing and create resentment. Promoting workers based solely on length of service (B) may not necessarily reward the most skilled or motivated employees. Hiring only family members (D) can lead to nepotism and a lack of diversity in the workplace.

Question 12

For a business,catering to the needs of locavores:

Accepted Answer

Locavores prioritize eating locally sourced foods, which means that some foods may be plentiful in one area but unavailable in another. This can make it difficult for businesses to cater to their needs and may require more creative sourcing and menu planning.

Question 13

According to the U.S.Department of Commerce,a ________ of small businesses export their goods.

Accepted Answer

The answer of According to the U.S.Department of Commerce,a ________...

Question 14

Entrepreneurs learn that there are many legal and financial issues involved in starting their business.The best way for the small business owner to resolve these issues and protect the firm's resources is:

Accepted Answer

Seeking expert guidance and assistance is the best way for small business owners to address legal and financial issues. By doing so, they can ensure that their decisions are informed and compliant with applicable regulations, while also minimizing the risk of costly mistakes or litigation. Hiring a full-time lawyer and accountant may not be feasible for small businesses, and deferring decisions can lead to missed opportunities or liabilities. Trusting common sense alone can also be risky, as legal and financial matters may be complex and require specialized knowledge.

Question 15

Which of the following is

Accepted Answer

The answer of Which of the following is
...

Question 16

In order to improve his chances of small business success,Demitri prepared a business plan.Most often,a positive outcome of this exercise is:

Accepted Answer

The purpose of preparing a business plan is to carefully consider all aspects of the business idea, including market analysis, financial projections, and operational strategies. This exercise can improve the chances of small business success by identifying potential challenges and opportunities and helping the entrepreneur to develop a clear and effective plan of action. While a business plan may be required for certain legal or financial purposes, such as obtaining a loan or meeting reporting requirements, these are not the primary benefits of preparing a plan. A business plan does not guarantee success or protect an entrepreneur from failure, but it can increase the likelihood of achieving business goals.

Question 17

Samantha recently applied for a microloan from the SBA.Although several criteria are important,the Small Business Administration's decision to grant or deny the loan will largely depend upon

Accepted Answer

The answer of Samantha recently applied for a microloan from...

Question 18

As a high net worth individual,Allison searches for growth firms in need of additional funding to achieve their goals.In return for this ___________,Allison expects to assume ownership in the business.

Accepted Answer

The term "venture capital" refers to the provision of funding for early-stage companies with the potential for high growth. As a high net worth individual, Allison is likely to be interested in investing in such firms in order to earn a return on her investment. In return for providing funding, she would expect to receive an ownership stake in the business. Option A is not applicable here, as analysis could refer to a range of activities related to evaluating and understanding a company or investment opportunity. Options C and D refer to other types of financing or investment, but do not specifically relate to the provision of funding to growth-oriented startups or other early-stage companies.

Question 19

Increased participation in small business exporting owes credit to ________.

Accepted Answer

Technological advances such as the Internet and PayPal have made it easier and safer for small businesses to fulfill orders and engage in exporting.

Question 20

In order to finance The Shortbread Shack,a mobile bakery business that services several large Silicon Valley companies,Marcy demonstrated her steadfast desire to get her bakery off the ground by visiting several bankers with ____________.

Accepted Answer

Visiting bankers with a business plan is the best way to demonstrate the potential of the business and its viability to the financial institutions. This will help in securing loans, grants, or investments needed to finance the startup. Insurance agents and venture capitalists may not necessarily be involved in the initial stages of securing funding for a mobile bakery business.

Quiz 6: Entrepreneurship and Starting a Small Business