Question 1

A _____ business sells directly to consumers products manufactured by other firms.

Accepted Answer

A)   service
B)   finance
C)   manufacturing
D)   wholesale
E)   retail

Question 2

Small businesses:

Accepted Answer

A)   are a key source of new jobs in various industries.
B)   are not present in the technology sector.
C)   are least likely to lay off workers during economic downswings.
D)   employ 0.2 percent of all workers in the United States.
E)   hire at a slower rate than large companies during economic recovery.

Question 3

Match the following numbered items with the most correct response.
A response may be used once, more than once, or not at all.
-Responsible for building a customer base

Accepted Answer

A)  Starting a business from scratch
B)  Buying an existing business
C)  Buying a franchise

Question 4

Identify an accurate statement about small businesses and large businesses.

Accepted Answer

A)   Most of the products made by big manufacturers are sold to consumers by small businesses.
B)   Innovations are least likely to come from small businesses.
C)   Large businesses are likely to eliminate jobs at a far higher rate than small businesses.
D)   Large businesses hire at a much faster rate than small businesses.
E)   Large businesses consistently supply the majority of all "innovations" introduced into the U.S. marketplace each year.

Question 5

Which of the following statements is true about a franchise agreement?

Accepted Answer

A)   The franchisee is free to modify the franchisor's products.
B)   The franchisee can consult the franchiser for managerial and financial help.
C)   The franchisee and not the franchiser takes the responsibility of marketing and advertising activities.
D)   The franchisee can keep all the profits made by the venture.
E)   The franchisee does not have to pay a start-up cost for the venture. B

Question 6

Jane has started a new business venture. Since the resources available are minimal, Jane needs to reduce the production costs of the venture. Jordon, a student of advanced business management, is helping Jane come up with techniques and strategies to reduce costs. Jordon's grades will be influenced by how effectively he helps Jane. Such an arrangement is provided by the _____ project of the Small Business Administration.

Accepted Answer

A)   Service Corps of Retired Executives
B)   management consulting
C)   Active Corps of Executives
D)   Small Business Investment Company
E)   Small Business Institute

Question 7

In a _____, the entrepreneur summarizes the business strategy and how that strategy is to be implemented.

Accepted Answer

A)   market summary
B)   mission statement
C)   business plan
D)   cost-benefit analysis
E)   business environment analysis

Question 8

Relish LLC. spent a lot of resources to open an exclusive outlet of low-fat pizzas made from organic ingredients. Relish made huge sales on the pizzas. Relish enjoys customer loyalty because it introduced the pizza range before any of its competitors. Which of the following concepts is illustrated in the scenario?

Accepted Answer

A)   Opportunism
B)   First mover advantage
C)   Divesting strategy
D)   Market penetration
E)   Anti-competitive strategy

Question 9

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

Accepted Answer

service
Primarily because they...

Question 10

Which of the following is an advantage of buying an existing business?

Accepted Answer

A)   Established supplier relationships
B)   Increased customer loyalty
C)   Freedom to choose locations
D)   Opportunity to develop new inventories
E)   Minimal production costs

Question 11

Match the following numbered items with the most correct industry.
A response may be used once, more than once, or not at all.
-Citibank

Accepted Answer

A)  Service
B)  Retailing
C)  Construction
D)  Finance and insurance
E)  WholesalingF) TransportationG) Manufacturing D

Question 12

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

Accepted Answer

Small
Small businesses supply ...

Question 13

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

Accepted Answer

niche
A niche is sim...

Question 14

Match the following numbered items with the most correct industry.
A response may be used once, more than once, or not at all.
-El Galindo, maker of tortilla chips

Accepted Answer

A)  Service
B)  Retailing
C)  Construction
D)  Finance and insurance
E)  WholesalingF) TransportationG) Manufacturing

Question 15

Which of the following is a true statement about small businesses and large businesses?

Accepted Answer

A)   Small businesses are about as likely to innovate as large businesses.
B)   Large businesses have been responsible for virtually every major product innovation.
C)   Most small businesses in the technology sector have been failures.
D)   All successful new start-ups are leading-edge dot-com enterprises.
E)   Large businesses hire at a higher rate than small businesses.

Question 16

The _____ industry provides a higher return on time invested than any other industry group.

Accepted Answer

A)   retail
B)   manufacturing
C)   service
D)   construction
E)   finance

Question 17

Marianne, who has started a software development firm, is looking for sources of financing. Marianne has approached Zenith LLC., a large consulting firm, to partner with her venture. Zenith has agreed to partner with Marianne's venture and provide it with capital. In this scenario, Marianne's source of financing falls in the category of:

Accepted Answer

A)   personal resources.
B)   government loans.
C)   strategic alliances.
D)   Small Business Administration loans.
E)   venture capital companies.

Question 18

A _____ is a segment of a market that is not currently being exploited.

Accepted Answer

A)   niche
B)   merger
C)   divestiture
D)   stock
E)   share

Question 19

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

franchising agreement
A franchising agre...

Question 20

Which of the following is an important question that is answered in a business plan?

Accepted Answer

A)   What are the marketing strategies used by the entrepreneur's competitors?
B)   What are the trade restraint strategies used by businesses in the external environment?
C)   What are the entrepreneur's goals and objectives?
D)   What are the overhead costs of the entrepreneur's venture?
E)   How will the entrepreneur divest strategic business units? C

Exam 5: Entrepreneurship and New Venture Management

A _____ business sells directly to consumers products manufactured by other firms.

Correct Answer
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Small businesses:

Correct Answer
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Match the following numbered items with the most correct response. A response may be used once, more than once, or not at all. -Responsible for building a customer base

Correct Answer
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Identify an accurate statement about small businesses and large businesses.

Correct Answer
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Which of the following statements is true about a franchise agreement?

Correct Answer
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B

Correct Answer
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In a _____, the entrepreneur summarizes the business strategy and how that strategy is to be implemented.

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

Correct Answer
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service
Primarily because they...
View Answer

Which of the following is an advantage of buying an existing business?

Correct Answer
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Match the following numbered items with the most correct industry. A response may be used once, more than once, or not at all. -Citibank

Correct Answer
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D

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

Correct Answer
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Small
Small businesses supply ...
View Answer

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

Correct Answer
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niche
A niche is sim...
View Answer

Match the following numbered items with the most correct industry. A response may be used once, more than once, or not at all. -El Galindo, maker of tortilla chips

Correct Answer
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Which of the following is a true statement about small businesses and large businesses?

Correct Answer
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The _____ industry provides a higher return on time invested than any other industry group.

Correct Answer
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Correct Answer
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A _____ is a segment of a market that is not currently being exploited.

Correct Answer
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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) _____.

Correct Answer
verified
franchising agreement
A franchising agre...
View Answer

Which of the following is an important question that is answered in a business plan?

Correct Answer
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C

Exam 5: Entrepreneurship and New Venture Management

A _____ business sells directly to consumers products manufactured by other firms.

Correct AnswerverifiedShow Answer

Small businesses:

Correct AnswerverifiedShow Answer

Match the following numbered items with the most correct response. A response may be used once, more than once, or not at all. -Responsible for building a customer base

Correct AnswerverifiedShow Answer

Identify an accurate statement about small businesses and large businesses.

Correct AnswerverifiedShow Answer

Which of the following statements is true about a franchise agreement?

Correct AnswerverifiedB

Correct AnswerverifiedShow Answer

In a _____, the entrepreneur summarizes the business strategy and how that strategy is to be implemented.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedservicePrimarily because they...View AnswerShow Answer

Which of the following is an advantage of buying an existing business?

Correct AnswerverifiedShow Answer

Match the following numbered items with the most correct industry. A response may be used once, more than once, or not at all. -Citibank

Correct AnswerverifiedD

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

Correct AnswerverifiedSmallSmall businesses supply ...View AnswerShow Answer

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

Correct AnswerverifiednicheA niche is sim...View AnswerShow Answer

Match the following numbered items with the most correct industry. A response may be used once, more than once, or not at all. -El Galindo, maker of tortilla chips

Correct AnswerverifiedShow Answer

Which of the following is a true statement about small businesses and large businesses?

Correct AnswerverifiedShow Answer

The _____ industry provides a higher return on time invested than any other industry group.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A _____ is a segment of a market that is not currently being exploited.

Correct AnswerverifiedShow Answer

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) _____.

Correct Answerverifiedfranchising agreementA franchising agre...View AnswerShow Answer

Which of the following is an important question that is answered in a business plan?

Correct AnswerverifiedC

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B

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service
Primarily because they...
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D

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Small
Small businesses supply ...
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niche
A niche is sim...
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franchising agreement
A franchising agre...
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C