Chap 9: Managing Start-Ups and New Ventures

Experts agree that small businesses will be quite important in the emerging economies of countries such as _____. a.Russia b.the United States c.the United Kingdom d.Germany

Russia

Which of the following is required to help alert entrepreneurs to potential trouble? a.Dedication b.An effective control system c.An innate sense of optimism d.Luck

An effective control system

Which of the following is true of a small business? a.It does not influence its environment. b.It is publicly owned. c.It is not owned by one individual alone. d.It has many retail outlets.

It does not influence its environment

In the context of job creation and layoffs, which of the following is true? a.Small firms eliminate jobs at a very low rate. b.Small firms are the last to hire in times of economic recovery. c.Large companies are the last to lay off workers during economic downswings. d.Large firms hire at a faster rate than smaller firms.

Large companies are the last to lay off workers during economic downswings

Which of the following is the most important source of money for financing a new business? a.SBA financial programs b.Strategic alliances c.Personal resources d.Venture capital companies

Personal resources

Which of the following is a diverse field in which entrepreneurs have achieved success? a.Specialized dog training b.Specialized defense training c.Assembly-line car manufacturing d.Destructive innovation

Specialized dog training

Which of the following statements is true of minorities in small businesses? a.There has been a decrease in business ownership among Pacific Islanders. b.There has been a decrease in Latino-owned businesses. c.There has been an increase in the number of African American-owned businesses. d.There has been a substantial increase in the number of businesses owned by American Indians.

There has been an increase in the number of African American-owned businesses

Which of the following is true of Small Business Administration (SBA) financial programs? a.They require a representative on the board of directors of a company. b.They prevent commercial lenders from lending money to small businesses. c.They lend to firms that are unable to get private financing. d.They are major sources of small-business financing.

They lend to firms that are unable to get private financing

Most successful entrepreneurs: a.analyze market conditions carefully. b.succeed alone. c.succeed straight out of college. d.launch their ventures in their spare time.

analyze market conditions carefully

A(n) _____ is a contract between an entrepreneur and a parent company; the entrepreneur pays the parent company for the use of its trademarks, products, formulas, and business plans. a.unconscionable contract b.franchising agreement c.sponsored agreement d.express contract

franchising agreement

When there are strong economies of scale in _____, small firms do not do as well as large firms. a.construction b.retailing c.manufacturing d.transportation

manufacturing

A(n) _____ is defined as a segment of a market that is not currently being exploited. a.niche b.conglomerate c.accord d.crowd

niche

A retail business: a.sells directly to producers. b.requires fewer employees than wholesalers. c.offers products to wholesalers for sale at a low price. d.sells products manufactured by other firms.

sells products manufactured by other firms

Milo is a financial accountant who recently started an accounting firm. He is personally responsible for the success or failure of the company. This company can be bought over by an existing business. This scenario shows that Milo owns a _____. a.joint venture b.start-up c.joint-stock company d.limited liability company

start-up

True entrepreneurs: a.hire professional managers to run their businesses. b.undergo the process of planning and operating a business venture. c.assume less-than-total personal risk for the success or failure of the business. d.are professional managers whose job is running someone else's business.

undergo the process of planning and operating a business venture