Question 1

The roles of entrepreneurial firms in our economy are innovation, _____, and importance to large business.

Accepted Answer

The answer of The roles of entrepreneurial firms in our...

Question 2

Minorities and _____ are starting more small businesses than in the past.

Accepted Answer

The answer of Minorities and _____ are starting more small...

Question 3

Primarily because they require few resources, _____ businesses are the fastest-growing segment of small-business enterprise.

Accepted Answer

The answer of Primarily because they require few resources, _____...

Question 4

José has just founded a company to develop educational software, and he has brought together a group of educators and parents to help him better understand the needs of children. This group is called a(n) _____.

Accepted Answer

The answer of José has just founded a company to...

Question 5

Which of the following statements is true about franchising?

Accepted Answer

Because each franchise outlet is probably a carbon copy of every other outlet, the chances of failure are reduced. McDonald's, for example, is a model of consistency-Big Macs taste the same everywhere.

Question 6

Discuss the concept of entrepreneurship.

Accepted Answer

The answer of Discuss the concept of entrepreneurship....

Question 7

What is a disadvantage of starting a business through a franchise agreement?

Accepted Answer

Buying a franchise also entails less tangible costs. For one thing, the small-business owner sacrifices some independence. In addition, many franchise agreements are difficult to terminate.

Question 8

Which of the following is a recent business trend?

Accepted Answer

More people are encouraged to test their skills as entrepreneurs because the failure rate among small businesses has been declining in recent years.

Question 9

An independently owned and operated enterprise with relatively little influence over its environment is defined in the text as a(n) _____.

Accepted Answer

The answer of An independently owned and operated enterprise with...

Question 10

Match the following numbered items with the most correct response.
A response may be used once, more than once, or not at all.
-Historical records answer questions about cash flow problems

Accepted Answer

Historical records of an existing business can provide insights into its cash flow problems, helping a potential buyer assess the financial health and risks associated with the purchase.

Question 11

_____ is a general factor that contributes to the success of small businesses.

Accepted Answer

Managerial competence is a general factor that contributes to the success rates of small businesses.

Question 12

A(n) _____ is simply a segment of a market that is not currently being exploited.

Accepted Answer

The answer of A(n) _____ is simply a segment of...

Question 13

A group of small investors seeking to make profits on companies with rapid growth potential is called a(n) _____.

Accepted Answer

The answer of A group of small investors seeking to...

Question 14

A firm that exploits a marketing opportunity ahead of its competitors is said to have a(n) _____.

Accepted Answer

The answer of A firm that exploits a marketing opportunity...

Question 15

A contract between an entrepreneur and a parent company where the entrepreneur pays the parent company for the use of its trademarks, products, formulas, and business plans is called a(n) _____.

Accepted Answer

The answer of A contract between an entrepreneur and a...

Question 16

More than half of all new businesses do not last six years. What are four general factors that cause failure of business?

Accepted Answer

The answer of More than half of all new businesses...

Question 17

Explain the first mover advantage and how it differs for small businesses and large organizations.

Accepted Answer

The answer of Explain the first mover advantage and how...

Question 18

One important part of a business plan is the entrepreneurs' estimate of the amount of business they expect, also called a(n) _____.

Accepted Answer

The answer of One important part of a business plan...

Question 19

Which of the following factors is responsible for the failure of a small business?

Accepted Answer

Although no set pattern has been established, four general factors contribute to new business failure. They are: managerial incompetence, neglect, weak control systems, and insufficient capital.

Question 20

_____ businesses supply over half of all "innovations" introduced into the U.S. marketplace each year.

Accepted Answer

The answer of _____ businesses supply over half of all...

Quiz 5: Entrepreneurship and New Venture Management