Chapter 5

23. "Light a Candle" can be described as A. stand retailing. B. mail ordering. C. home retailing. D. consignment retailing.

A. stand retailing

3. Nowadays, the conventional wisdom is that if you are serious about starting a business, you ought to start a business full time and prepare for it by A. doing a business plan. B. making bylaws. C. doing a strategic plan. D. creating an organizational chart.

A. doing a business plan

14. All of the following are disadvantages of home retailing EXCEPT A. high cost of getting started. B. always working "on the road." C. lacking a base from which you can organize and work. D. having a highly variable income.

A. high cost of getting started

16. The key device for managing time for part-time business individuals is A. the to-do list. B. auctioning. C. hiring employees. D. outsourcing.

A. the to-do list

7. What is the greatest problem that home-based entrepreneurs face? A. Zoning challenges B. Gaining customers C. Insurance problems D. Delivering work

A. zoning challenges

22. All of the following are major concerns of moonlighting EXCEPT A. conflict of interest. B. bootstrapping. C. cannibalizing sales. D. poisoning the well.

B. bootstrapping

6. Which of the following statements about the key considerations for part-time small business start-ups is false? A. You want a low cost of start-up, since you probably will not have a lot of money to invest. B. The more time and energy you spend preparing for a small-scale part-time business, the shorter it takes to make a profit. C. In most cases, the cost to start-up and the time to market are closely related. D. The fundamental idea of permanence is that customers want to know if the firm is likely to be around for awhile, to provide customer service and future sales.

B. the more time and energy you spend preparing for a small-scale part time business, the shorter it takes to make a profit

15. All of the following relate to "stand retail" EXCEPT A. they tend to be either semi-permanent ones or movable ones. B. they need to be built in places where there is less traffic. C. they can be quickly established. D. they have a problem of building customer base.

B. they need to be built in places where there is less traffic

20. Delegation does NOT make sense in which of the following situations? A. When you want your business to operate in two places at once. B. When trust is low and employees lack skills. C. When you want your business to operate when you are not present. D. When others can do things better than you.

B. When trust is low and employees lack skills

24. If Elizabeth starts to take days off from work to staff the kiosk at the flea market, she may be facing A. bootstrapping. B. conflict of interests. C. poisoning the well. D. aggrandizing.

B. conflict of interests

12. A listed, live connection to a different Web site, which in turn displays a similar link to the first Web site is a(n) A. sponsored link. B. reciprocal link. C. backlink. D. incoming link.

B. reciprocal link

2. Full-time approaches include all of the following EXCEPT A. buying or inheriting existing businesses. B. stand retailing. C. franchising. D. opening a new full-time business.

B. stand retailing

25. If Elizabeth wants to have a full-time sale with only part-time involvement, she should consider A. consignment stores. B. home retailing. C. bootstrapping. D. stand retailing.

A. consignment stores

18. . _____ refers to information provided to the government concerning the existence of, name of, nature of, and contact information for your business. A. Zoning B. Franchising C. Registration D. Bootstrapping

C. Registration

21. Contracting with people or companies outside your business to do work for your business refers to A. moonlighting. B. bootstrapping. C. outsourcing. D. licensing.

C. outsourcing

Which of the following does NOT hold true of part-time self-employment? A. It is a minor portion of all current entrepreneurship. B. There is tremendous volatility as individuals jump in and out of self-employment quickly and frequently. C. It accounts for around half of small businesses in the United States. D. It is the way most people start in entrepreneurship.

A. It is a minor portion of all current entrepreneurship

11. Identify the correct statement about RSS feeds. A. All Web sites push content out to customers by using an RSS feed. B. An RSS feed sends whatever Web material you specify to subscribers to that feed. C. RSS stands for "really simple sequence." D. RSS feeds can be read only with special readers.

B. An RSS feed sends whatever Web material you specify to subscribers to that feed

17. The two key groups outside your business with whom you must deal with as part-time business owners are A. the state and federal governments. B. the government and customers. C. customers and employees. D. employees and investors.

B. the government and customers

4. Which of the following statements about a business plan is false? A. A business plan enables you to look at every aspect of your business. B. Business plans are important if you intend to ask others for expertise or financial investments. C. Estimates suggest that a business plan may take anywhere from 10 to 20 hours or more if you are new to business. D. If you are new to business and need to gain basic experience, you might want to obtain other types of experience before writing a business plan.

C. Estimated suggest that a business plan may take anywhere from 10 to 20 hours if you are new to business

8. Permission from a government organization to act differently than the laws state is known as A. a covenant. B. volatility. C. variance. D. bootstrapping.

C. variance

13. Which of the following is NOT an advantage of home businesses? A. Speed and ease of setting up. B. Low cost of getting started. C. Ability to do the work away from your home and employer. D. Always working "on the road" thereby enhancing productivity.

D. Always working "on the road" thereby enhancing productivity

10. Identify the correct statement about B2B. A. For most of us, the B2B market is visible. B. An example of a B2B transaction would be an individual buying a cell phone. C. It involves electronically-facilitated transactions between consumers through a third party. D. B2B e-commerce is larger than B2C e-commerce.

D. B2B e-commerce is larger than B2C e-commerce

9. An Internet site designed to introduce and explain a business to others is known as a(n) A. e-commerce Web site. B. portal Web site. C. advocacy Web site. D. informational Web site.

D. informational web site

19. All of the following are challenges of being a part-time entrepreneur EXCEPT A. delegation and outsourcing. B. ethical challenges. C. moving from part-time to full-time entrepreneur. D. the ability to make money to sustain the business.

D. the ability to make money to sustain the business

5. All of the following are situations in which it might make better sense to undertake a part-time business EXCEPT A. when you are new to business and need to gain basic experience. B. when you lack resources to pursue a full-scale business. C. when there is a narrow window of opportunity. D. when there is enough time and resources to get the entire business going.

D. when there is enough time and resources to get the entire business going