Module Questions

1. All of the following are reasons why people are willing to take entrepreneurial risk EXCEPT

Guaranteed success

The Wolfman Enterprise Center offers inexpensive office space for new service-oriented businesses along with other services to help new businesses succeed. These services include access to financing, shared conference rooms and training facilities, a receptionist and clerical support. This is an example of a(n)

Incubator

Which of the following is a major key to the success of any small business?

Personal attention to customers

The document that details the business idea, the target market, the business's competitive advantage, the available financial resources and the qualifications of its managers is known as the

business plan

Demand for Riana's product in the U.S. is inconsistent. When orders are slow, she sometimes needs to shut down production to help control inventory levels. One way Riana could improve her firm's situation is to

export to international markets.

When it comes to prior experience, what is the rule of thumb regarding how many years of experience you should have in a comparable firm before starting a firm of your own?

3 years

When an Enterprise employee suggested picking up customers, the company listened. Soon the idea of picking up customers would be one of the services Enterprise would be known for. The first researcher to discover that employees are motivated to perform better when they feel like managers have listened to them and respected their ideas was

Elton Mayo.

What U.S. government agency advises and assists small businesses by providing management training and financial advice as well as loans?

The small business administration

Why is it beneficial for new entrepreneurs to consider taking a course in small business management at a community college?

They can learn from instructors and experienced entrepreneurs from a wide array of backgrounds.

Which of the following statements regarding small business ownership is TRUE?

About 50% of all small businesses are owned by women.

In order to attract businesses to the area, the city of Grand Valley offers a $500 job tax credit per employee, a 3% investment tax credit for purchased equipment and a health insurance tax credit of $200 per employee. This is an example of a(n)

Enterprise zone

Teams of retired executives who help new entrepreneurs with everything from writing business plans to answering questions about everyday operations are known as

Score

Anita opened a home-based business specializing in billing and coding for physicians. She intends to keep the business small and operate it as a one-person firm. Anita is a(n)

microprenuer

Approximately what percentage of American workers got their first job with a small business?

80 percent

* 2. In an effort to encourage its employees to develop new ideas for the firm, W.L. Gore has a 'Dabble Time Policy' that allows employees to devote 10% of their time at work to create their own projects. The company will even provide employees with funds to use for these projects. It appears that the company is working to develop _______ within its organization.

Intrapreneurs

The presentation outlines ways would-be entrepreneurs can learn how to run their own business. Which of the following is NOT one of those ways?

Investigate competitors

Which of the following is NOT a reason why businesses enter global markets?

It is cheaper to do so.

Which of the following is NOT part of the definition of a small business as outlined by the Small Business Administration?

It is operated as a subsidiary of a larger corporation.

Which of the following is NOT a major hurdle to getting started in global business?

Lack of technological advances

Ryan wants to begin marketing his products internationally. One of the challenges he is likely to experience is

cultural differences.

According to the Small Business Administration (SBA), half of the new businesses started in the U.S. fail in the first five years. All of the following are potential reasons for small business failure EXCEPT

the ability to respond quickly to changing market conditions.

What part of a business plan are bankers most likely to read and focus on first?

the executive summary

Efficiency engineer Frederick Taylor believed that workers could be much more efficient if they were given the proper tools and taught the one best way to do their jobs. In order to figure out the best way to do a particular job, Taylor conducted

time and motion studies.

Companies that are willing to exchange a significant stake in the company in return for funds to grow or expand the business may seek funding through

venture capitalists.