Ch 1 Quiz

_________ are often for only a few dollars and each are made directly to entrepreneurs to encourage self-development in developing nations.

Microloans

Which of the following are characteristics of venture capital-backed firms?

They have a developed organizational structure. They either start or grow quickly to employ a relatively large number of employees. They are formed with a harvest plan in place.

Entrepreneurial business resources are more _____ than venture capital-backed businesses.

constrained

Firms can obtain _________ __ _____ in some industries because of their ability to operate on a larger scale than can a small firm.

economies of scale

Which of the following terms describes a plan to exit a small business?

Harvest Plan

Compared to large corporations, entrepreneurial businesses

play just as important a part in our economy.

The Small Business Administration was organized as a part of

the Small Business Act of July 30, 1953.

Microloans have been in existence for years; they are most commonly made directly to _____ for self-development.

women

The largest group of new business owners is _____.

women

The book The Millionaire Next Door, states that 75% of self-employed millionaires are ______.

entrepreneurs

The difference btwn entrep businesses and venture capital-backed firms is that ______.

Entrep businiesses' resources are more constrained than those of venture capital backed businesses.

Which one of the following is a huge advantage for small business owners to start a business?

Desire to be one's own boss

True or false: Robber barons were responsible for the collapse of small businesses in the 1880s.

False

Which of the following are reasons why entrepreneurial businesses are successful?

Fewer layers of management Free to place energy into satisfying the needs of customers Tend to be more focused than large corporations

Which of the following statements is true regarding the Great Depression of the 1930s?

It encouraged industrial concentration

Which of the following is NOT a factor in a small business's success? Other people's needs and wants are not as important as the small business owner's. Small business owners want and need to be independent. Business owners need to carefully consider the needs of stakeholders. Business owners have both the opportunity and the responsibility to lead.

Other people's needs and wants are not as important as the small business owner's.

Characteristics of a small business start-up include all EXCEPT which one of the following? Over 100 employees Self-funded Oriented toward positive cash flow Designed to take advantage of the skills of the founder(s)

Over 100 employees

Characteristics of a small business start-up include all EXCEPT which one of the following? Over 100 employees Correct Self-funded Oriented toward positive cash flow Designed to take advantage of the skills of the founder(s)

Over 100 employees

____________ include key suppliers, customers, and employees. These individuals are critical to the success of a business.

Stakeholders

What are the critical elements that an entrepreneur must solve for success?

Sufficient resources to get the business to a point where it is self-funding Develop an ability to generate consistent and growth sales Sustainable operating profit margins

Which of the following are goals of the business plan for a new entrepreneurial business?

To provide investors with necessary information To be a guide to managing the business To provide self-evaluation

Years ago, economists mistakenly predicted that small businesses would

be replaced by a smaller number of big businesses.

Start-up businesses are formed as high growth, high tech ventures and are referred to as _____.

venture capital-backed firms