Question 1

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

Marcy would need a solid business plan to demonstrate the potential profitability of her business to bankers. The other options (insurance agent, venture capitalist, idea) may be useful at different stages of the business, but would not be the most crucial factor in obtaining financing from a bank.

Question 2

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

Accepted Answer

As a SCORE counselor, Chad's main role is to provide consulting services to small businesses for free. SCORE is a nonprofit organization that provides mentoring and education to entrepreneurs and small business owners. As a volunteer counselor, Chad will share his knowledge and experience with small business owners to help them succeed.

Question 3

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 4

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 5

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

Small business owners should seek expert guidance and assistance to handle legal and financial issues. While trusting common sense is important, it may not be enough to navigate complex legal and financial matters. Hiring a full-time lawyer and accountant may not be feasible for a small business, especially in the early stages. Deferring decisions can lead to missed opportunities or costly mistakes, so seeking guidance from professionals is the best option.

Question 6

The size of the world market is:

Accepted Answer

The current global population is over 7 billion and the world market includes all of these individuals as potential consumers. Therefore, choice B (6.8 billion) is the most accurate estimate for the size of the world market. Choices A (500 million) and C (5 million) are too small to represent the world market, while option D (10 trillion) is likely an overestimation.

Question 7

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 founder of the business may find it difficult to remove family members from positions, even if it is not good for the business due to personal ties and emotions involved.

Question 8

Small business employees:

Accepted Answer

Small business employees often have a stronger sense of ownership and connection to their work, leading to higher job satisfaction than their counterparts in big business. While wages may not always be as competitive, the satisfaction aspect can outweigh this factor.

Question 9

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

Analyzing the market before making the service available is important because it helps to identify the target audience, competition, pricing strategies, and other factors that can affect the success of the business. This information can help in making informed decisions and developing effective marketing strategies.

Question 10

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 Ming may feel a sense of loyalty and appreciation towards her long-time employees, it is important to prioritize the success and growth of the business. If none of the existing employees are ready to manage the new branch, it would be detrimental to appoint one of them anyway. Similarly, running the new branch herself and shifting one of the existing employees to the original office may not be the most effective use of resources. While a team approach could work, it may not provide the necessary clarity and accountability for the new office. Hiring a new employee to manage the office would be the best option as it brings in new talent with relevant expertise and experience, and allows for the smooth operation and growth of the business.

Question 11

One reason why many U.S.small businesses are not involved in exporting is:

Accepted Answer

Many small businesses may not be involved in exporting because they are not familiar with the process and do not know how to get started. Exporting requires extensive knowledge of international markets, regulations, and logistics, which can be intimidating for small businesses that lack experience in this area.

Question 12

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 create a sense of ownership and investment in the company, leading to higher levels of motivation and job satisfaction. This can also lead to innovative solutions and improvements in business operations. Choices A and D are inappropriate and may result in a negative impact on employee morale, while choice B may not necessarily promote merit-based advancement and could result in resentment among employees who are not promoted despite their qualifications.

Question 13

Chris is an angel investor.This means that he:

Accepted Answer

An angel investor typically invests their own money into new businesses with high potential for growth, in exchange for a percentage of ownership in the company and hopes for a good return on their investment if the company goes public or is acquired. Option B describes a business incubator, while option C describes an investor in non-profits with a specific growth plan. Option D describes a lender rather than an investor.

Question 14

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

Venture capital is a type of financing provided to early-stage, high-potential growth firms by investors such as Allison, in exchange for an ownership stake in the business. This allows the investor to share in the success of the company and potentially earn a significant return on their investment. The other options (analysis, corporate loan, securities investment) do not necessarily involve an ownership stake in the business.

Question 15

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 go out of his way to accommodate his customer's needs demonstrates his ability to adapt and respond to his customer's needs. This is a key trait of small business owners who often have a closer relationship with their customers than larger businesses.

Question 16

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 17

Increased participation in small business exporting owes credit to ________.

Accepted Answer

Technological advances such as the Internet and PayPal have made it easier for small businesses to safely fulfill orders and expand into world markets.

Question 18

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

Preparing a business plan enables the entrepreneur to carefully think through all aspects of the business idea, including market research, competitors, financing, and strategy. This increases the chances of small business success by identifying potential problems and opportunities early on and developing a clear roadmap for achieving success. While a business plan may be required for reporting or financing purposes, these are not the primary reasons to create one. And while a business plan can help mitigate risks and improve the chances of success, it cannot guarantee protection from failure as there are always external factors outside of the entrepreneur's control that can impact business outcomes.

Question 19

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

Accepted Answer

Financing can be a major challenge for small businesses looking to export, especially as they may need to make significant upfront investments to develop export capabilities, establish relationships with foreign partners, and comply with foreign regulations. Limited access to financing can be a major barrier to export growth for small businesses.

Question 20

The SBA's ________ program provides export financing opportunities for small businesses.

Accepted Answer

The Export Express loan program offered by the SBA provides small businesses with financing opportunities for their export activities. This program allows businesses to obtain loans quickly and easily, streamlining the application process and reducing the paperwork requirements. The program is designed to help small businesses expand their international sales opportunities and compete more effectively in the global marketplace.

Quiz 6: Entrepreneurship and Starting a Small Business