Test 2 Biz 201

Which of the following statements is true of entrepreneurs who possess tolerance of failure?

They tend to view nonsuccess as a chance to learn.

In the context of various funding options for small businesses, which of the following statements is a difference between angel investors and venture capital firms?

Angel investors are wealthy individuals, whereas venture capital firms are companies.

Small Business Development Centers (SBDCs)

are local offices—affiliated with the U.S Small Business Administration—that provide comprehensive management assistance to current and prospective small business owners.

In the context of opportunities and threats, overhead costs for small businesses:

often lower than big companies

In the context of entrepreneurs, which of the following statements is a difference between an internal locus of control and an external locus of control?

An internal locus of control involves personal responsibility, whereas an external locus of control does not.

Gemini Inc., a large conglomerate, offered Timothy's new logistics company the much required financial support in exchange for a 40% ownership in the company. It also provided Timothy with an experienced group of people to help him make crucial decisions for the company. In the given scenario, which of the following statements is true of Gemini Inc.?

It is a venture capital firm.

In the event that a large company has to downsize, the middle-aged workers who are laid off find it difficult to find new jobs. When such workers decide to start their own businesses, they:

are called necessity entrepreneurs.

Which of the following is a threat that a small business is most likely to face?

high risk of failure

Technological tools such as the Internet and email have:

made it easy for small business owners to manage their firms on the go

When buying a franchise, _____.

the initial purchase price can be steep