ETR 1

A

30. (p. 5) A business owned by an individual or small group is referred to as a(n) A independent small business. B team-dependent business. C franchise. D incubator.

D

A prepackaged business bought, rented, or leased from a company is called a(n) A imitative firm. B novelty. C incubator. D franchise.

B

A(n) _____ is one who profits from a business but is not involved in its day-to- day operations. A owner-manager B absentee owner C incubator D franchisor

C

A(n) _____ is the business term for the population of customers for your products or services A SIC B strategy C market D industry

D

According to Sageworks, in 2008, amid a recession, which of the following represented the most profitable industries for small businesses? A Software industries B Financial services C Manufacturing industries D Service industries

C

According to the BRIE model, in order to start a business, you need all of these elements to come together EXCEPT A intention. B resources. C experience. D boundary.

B

For entrepreneurs, perhaps the most rapidly growing type of reward is _____ rewards. A growth B flexibility C income D recognition

A

Funding invested for a share of a firm or given as loans or credit from family, friends, and other businesses used to help start or grow a firm is known as A informal capital. B formal social capital. C mezzanine capital. D committed capital.

D

Identify the characteristic of a high-tech venture. A Owner's own money is the preferred funding source B Sales are more important than marketing C Focus is on efficiency D Delegation is essential

A

Identify the characteristic of a small business. A Metastrategy is imitation B When the firm is in trouble, it focuses on selling more products/services C Approach to human resources is to professionalize D Focus is on effectiveness

B

Identify the most numerous and widely available type of firm, ranging from low to moderate levels of innovation and growth. A Ambitious firm sector B Economic core sector C Resource constrained sector D Glamorous sector

A

Which of the following is an attribute of a high-growth venture? A Metastrategy is novelty B High-growth ventures grow when necessary C When the firm is in trouble, it cuts costs D Delegation is difficult

A

Which of the following is an example of the glamorous sector? A Fortune 500s B Small businesses C Inventors D Franchises and multisite firms

A

Which of the following is an organization-based legitimacy indicator? A Legal form B Attire C Intellectual property D Testimonials

D

Which of the following refers to the eventual size of the market, which can range from a small, local, or niche market to something used by millions or even billions? A Mindshare B Occupational structure C Innovativeness D Potential for growth

C

the resource constrained sector A are firms that have low to moderate levels of innovation and growth. B are high growth and high innovation firms. C are firms that have lots of innovative ideas but lack the funds to bring them to market. D are generally not very innovative, but are designed for high levels of growth.

B

A facility which offers subsidized space and business advice to companies in their earliest stages of operation is called a(n) A franchise. B incubator. C small business development center. D small business administration center.

B

A person who becomes an owner through inheriting or being given a stake in a family business is called a(n) A founder. B heir. C buyer. D manager.

D

According to the Dynamic Capitalism Typology, the glamorous sector A consists of franchises and multisite firms, with low to moderate innovation and high levels of growth. B consists of firms high in innovation but low in growth rate due to a lack of resources. C consists of the most numerous and most widely available type of firms. D consists of firms with high growth and high innovation.

C

According to the Small Business Administration, about _____ of new firms with employees survive four years, and for owner-only firms this rate is _____ percent surviving four years. A one-half; 75 B one-fourth; 30 C two-thirds; 50 D two-fifths; 60

A

All of the following relate to firms in the ambitious firm sector EXCEPT A they are made up of inventors and research and development firms. B they are characterized by low to moderate innovation. C they are mostly franchises and multisite firms. D they are designed for high levels of growth.

C

Among SMEs, medium enterprises have _____ people. A 251-500 B 1-20 C 51-500 D 1-50

C

Identify the two hurdles that people need to overcome to move from thinking about owning their own business to achieving it. A Experience from large corporations for needed skill sets and organization abilities. B Financing the business and government regulation. C Moving from inaction to action and taking the right action. D Family support and finding the right people for the organization.

C

People starting high-growth ventures A require key market knowledge that focuses on their immediate marketplace and communities. B focus on how to start small, with resources from the owner, family, and friends. C need to know how to seek and obtain external financing. D require a key type of knowledge of how to grow on the schedule set by and for the purposes of the owner.

D

Process of personal selling includes all of the following EXCEPT A presenting. B prospecting and evaluating. C closing D deciding.

C

Rating firms high or low on innovativeness and potential for growth helps identify the different types of businesses in what is called A PICS Model of Entrepreneurship. B Creative destruction. C Dynamic Capitalism Typology. D General Equilibrium Economics.

D

Small businesses are A prepackaged businesses you buy or lease from a franchisor. B characterized by novelty. C described as being unique and distinctive. D imitative in nature.

A

The Small Business Administration categorizes a business in the U.S. as small, if it has fewer than _____ employees. A B. 500 B D. 1,000 C A. 50 D C. 300

B

The U.S. government agency that helps people start business is the A Department of Business Development. B Small Business Administration. C U.S. Entrepreneurial Administration. D U.S. Department of Business Development.

A

The ability of business owners to structure life in the way that suits their needs best refers to A flexibility rewards. B wealth rewards. C family rewards. D growth rewards.

D

Truly entrepreneurial businesses are characterized by _____, in their products, services, or business models. A experience B imitation C government subsidy D novelty

C

What percent of firms getting help in incubators were still going at four years? A 66 B 50 C 87 D 81

A

Which of the following is NOT a myth about small businesses? A There is no flexibility when you own your own business. B You can never try again if you fail once. C There is not enough financing to start businesses. D You need to make something if you are going to make money.

A

Which of the following is NOT a path to full-time business ownership? A Stand retailing B Buying an existing business C Starting a new business D Franchising

D

Which of the following is a characteristic of a small business? A Delegation is essential B Approach to human resource is to professionalize C Preferred funding source is other people's money D Focus is on efficiency

A

Which of the following is a reward that is rarely mentioned by entrepreneurs? A Continuing a family tradition in business B Building great wealth C Flexibility D Personal growth

B

Which of these is a suggested guideline for training? A Employees should practice what they have learned on their own time. B Think of it as an investment. C It should be provided only at the initial stage of employment D Have employees sign long-term contracts so they do not leave after receiving training.

D

Which of these refers to the concept that a business is expected to continue in existence for the foreseeable future? A Business entity B Buy and sell C Costs and expenses D Going concern

B

Why are small businesses considered the economic core of society? A They are made up of franchises and multisite firms, who are generally not very innovative, but are designed for high levels of growth. B They are the most numerous and most widely available type of firms. C They are high growth and high innovation firms. D They have lots of innovative ideas but lack the funds to bring them to market.

D

Why are small businesses considered the economic core of society? A They are made up of franchises and multisite firms, who are generally not very innovative, but are designed for high levels of growth. B They have lots of innovative ideas but lack the funds to bring them to market. C They are high growth and high innovation firms. D They are the most numerous and most widely available type of firms.

C

_____ are the cash flows that have been reduced in value because they are to be received in the future A Free cash flows B Replacement value cash flows C Discounted cash flows D Book value cash flows.

A

_____ are the offices co-sponsored by states and the federal government, that offer free or low-cost help to existing and potential small businesses. A Small Business Development Centers B Small Business Administration Offices C Research and Outreach Services D Occupational structures

B

_____ is the process of dividing the market into smaller portions of people who have certain common characteristics A Value proposition B Segmentation C Market penetration D CRM

B

_____ refers to constant or at least daily management of a business by its owner. A Franchising B Owner-management C Licensing D Franchise.

D

_____ refers to the size of the market whereas _____ refers to its geographic range A Mass; niche B Niche; mass C Scope; scale D Scale; scope

D

_____ rewards are what people get from facing and beating or learning from challenges. A Income B Recognition C Flexibility D Growth