Chapter 10-management

Which of the following statements is TRUE about the industries that small business owners may consider entering? A. There are no small businesses in the wholesaling industry. B. More than any other industry, discounting lends itself to the skills of the small business owner. C. Since the deregulation of banks, the small local bank has completely disappeared. D.Barriers to entry are generally small. E. Small businesses dominate the construction industry.

Barriers to entry are generally small

Which of these statements comparing large and small businesses is TRUE? A.Small business formations are on the decline, but the rate for big businesses is increasing. B. Small businesses show consistently lower financial performance than big businesses. C. Business success creates jobs regardless of size. D.Tax policies favor medium-sized businesses. E.Big businesses outnumber small businesses by a wide margin.

Business success creates jobs regardless of size.

Which of the following describes an entrepreneur? A. Richard Ames an investor of Red Raider which is run by his two partners. B. None of these C. Chad Olsen, who hired a consulting firm to research his business idea and help him set up Help-Doc, which he now manages D. Sidney Pell, who runs Midtown TV for its owner, James Hill E. James Hill, who owns Midtown TV but works as a Motorola engineer

Chad Olsen, who hired a consulting firm to research his business idea and help him set up Help-Doc, Which he now manages

Which of the following is NOT an example of an entrepreneur? A. Donna cook wanted to start a little home business 10 years ago, now she has a company that produces dry cooking mix. B. Cindy has a yard sale once a year. C. Madeline runs a neighborhood lemonade stand by herself. D. Elmer Olsen created the successful Bayfield Apple Jam Company using a recipe from his wife and some investment capital.

Cindy has a year sale once a year.

In which of the following areas retailing are small businesses most likely to create jobs through success? A. Department Store B. Gas Station C. Factory Outlets D. Creating organic health products E. General hardware

Creating organic health products

A Small business A. is publicly owned B. creates jobs faster than big businesses. C. has less than 100 employees. D. is easily discernible from a big business. E. has sales so small it cannot influence it environment

Has sales so small it cant influence its environment

An entrepreneur does all of the following EXCEPT A. Plan B. Organize C. Operate D. Assume Risk E. Hire Professional Managers

Hire Professional Managers

While watching her Dad cook bacon in the microwave, 10-year-old Abby Fleck asked, "Wouldn't it be less messy if you hung the bacon to cook?" After breakfast, she and her Dad went to the basement and created the Makin Bacon, a gadget for making bacon cooking less messy. Abby, her parents, and her grandparents own and operate a company that makes and sells Makin Bacon trays. Her first big customer was Armour Bacon, which purchased the gadget to sell as a premium on its packages of bacon. This is a small business that has contributed by its A. job creation and innovation. B.innovation and its importance to a big company. C.innovation and its impact on the internal environment of Armour. D. job creation, innovation, and importance to big business as a whole. E.financial performance and impact on its external environment.

Innovation and its importance to a big company

Which of the following statements comparing small businesses to large businesses is FALSE? A.Large businesses show better financial performance than small businesses. B.More new jobs are created by small than by large businesses. C. Small businesses represent the majority of new businesses started each year. D.Small businesses can typically produce and deliver specialty products more efficiently than large businesses. E.Small businesses outnumber large businesses by nearly 100 to 1.

Large businesses show better financial performance than small businesses.

Which of the following is NOT generally considered to be a role performed by small businesses? A. Development of new products B. Creation of New jobs C. distribution of products made by large businesses D. Provision of capital for expansion of large businesses E. manufacture of materials for large businesses

Provision of capital for expansion of large businesses

In which of the following industries are you most likely to find small business success? A. Manufacturing B.Airline C. Retailing D. Wholesaling E. Store Retailing

Retailing

In which of the following ventures would a small business operator be most effective? A. Transportation B. Services C. Manufacturing D. Wholesale E. Construction

Services

Service Businesses are fastest growing segment of small-business enterprises primarily because of: A. favorable tax treatment B. low labor requirements C. Size of initial capital investment required D. high market demand E. Lack of owner commitment

Size of initial capital investment required

Kristen owns and operates a photography studio, She has no employees. She is a A. leaseholder B. small business owner C. venture capitalist D. networker E. intrapreneur

Small Business Owner

Why are some small business owners successful in the wholesaling industry?

Small business owners are able to develop personal working relationships with their buyers.

In terms of the number of new jobs formed each year, how does small business compare to big business? A.Small business creates more than 99 percent of the new jobs. B.Big business loses the most jobs each year. C.Small business was recently passed by big business in creating new jobs D.Business success creates jobs regardless of size. E.Big business is responsible for nearly all of the new jobs created.

Small businesses was recently passed by big businesses in creating new jobs.

Which of the following statements explains why small businesses are generally more effective than large companies in specialty retailing? A. Innovative people leave the bureaucracy of big business to start their own firms. B.Specialty retailing relies on customization, which is not cost effective for large companies. C. Specialty retail stores are generally located in small towns where large organizations tend not to compete. D.Specialty retailing requires a different organizational structure than is usually found in large companies. E. Large companies generally lack the specialists that are needed to make a retail store profitable.

Specialty retailing relies on customization, which is not cost effective for large companies.

If an entrepreneur were considering a new business, which of the following would be a DESIRABLE characteristic of the industry being considered? A. Start up costs are high, so only a few companies are in business. B. Customers have substitute products form which to choose if the new company cannot produce the products as rapidly as needed. C. The new company will sell a newly patented invention that is not yet well known but is expected to dominate the market. D.Several companies are engaged in highly competitive advertising, which indicates that the product is desirable.

The new company will sell a newly patented invention that is not yet well known but is expected to dominate the market.