Week 3 - Dynamic Study Module Ch 06: Entrepreneurship and Small-Business Ownership

Most small businesses employ __________ employees. ANSWER 0 10 500 50 I DON'T KNOW YET

0

Which of the following best characterizes a lifestyle business? ANSWER A business that finds investors who believe in a certain type of lifestyle that the business plans to serve. A business built around the needs of an individual or family. A business aimed at customers with a particular lifestyle. A firm that is young but plans to grow large. I DON'T KNOW YET

A business built around the needs of an individual or family.

Which of the following best describes a business plan? ANSWER A document that contains information on a business's facilities, equipment, and personnel requirements. A statement that explains the overall purpose of a business. A document that summarizes a proposed business venture, its goals, and plans for achieving those goals. A document that forecasts the development of a company in terms of completion dates for major aspects of the business. I DON'T KNOW YET

A document that summarizes a proposed business venture, its goals, and plans for achieving those goals.

Which of the following is true about a business incubator? ANSWER Business incubators are not allowed to provide sources of financing to start-up companies. Business incubators can only be operated by government agencies. Business incubators can only be operated by non-governmental agencies. Business incubators provide facilities to start-up companies. I DON'T KNOW YET

Business incubators provide facilities to start-up companies.

What is a specific type of machine learning that uses layers of artificial neural networks to mimic brain functions? ANSWER Deep learning Machine learning Franchising Crowdfunding I DON'T KNOW YET

Deep Learning

Which of the following is the best explanation of what entrepreneurs do? ANSWER Entrepreneurs are individuals who guide an organization. Entrepreneurs are individuals who run or manage an organization. Entrepreneurs are individuals who oversee the management of an organization. Entrepreneurs identify, evaluate, and exploit new business opportunities. I DON'T KNOW YET

Entrepreneurs identify, evaluate, and exploit new business opportunities.

Dan has developed an smart phone application that lets people know when they are most likely to be bitten by a mosquito. Which of the following best describes Dan in this context? ANSWER He is an organizational leader. He is a supervisor. He is an entrepreneur. He is a manager. I DON'T KNOW YET

He is an entrepreneur.

Which of the following is true of an executive summary? ANSWER It explains how the founder of the business and investors will be able to cash out or sell their investments in the firm. It is a shortened version of a business plan for quick presentation purposes. It explains who the managers and the founders and executives of a company will be. It provides full background information on the origins and structure of a business. I DON'T KNOW YET

It is a shortened version of a business plan for quick presentation purposes.

The following are start-up companies in different situations. Which business is at a greater risk of failure? ANSWER Peach Co. is not lenient on the credit it extends to its customers. Jelly Works faces an early surge in sales with insufficient inventory on hand. Ruby Inc. uses its revenue to pay back the loans it has borrowed from various investors. Jupiter Inc. accurately creates financial statements and budgets every month, and adheres to them diligently. I DON'T KNOW YET

Jelly Works faces an early surge in sales with insufficient inventory on hand.

Which of the following is the best example of entrepreneurship? ANSWER Lily, a store-owner, decides to open a fast-food kiosk outside her own store. Ryan, a store owner, provides free cakes to children during the Christmas season. James, a manager, invents and implements a quicker and easier way to solve organizational problems. Jim, a leader, initiates and incorporates a new manufacturing process in his company. I DON'T KNOW YET

Lily, a store-owner, decides to open a fast-food kiosk outside her own store.

The following are start-up companies in different situations. Which business is at a greater risk of failure? ANSWER Savard Inc. has been careful not to spend too much money on nonessentials for its business. March Company has been careful not to borrow a lot of money to gets its business started, only the bare minimum. Games Are Us uses its excess revenue to pay back the loans it has borrowed from various investors. Glendale Automotive manually counts its inventory monthly. I DON'T KNOW YET

March Company has been careful not to borrow a lot of money to gets its business started, only the bare minimum.

Which of the following can put a business at a greater risk of failure? ANSWER Writing a detailed business plan Paying back debts on time Using investments made by angel investors Poor inventory control I DON'T KNOW YET

Poor inventory control

The __________ is a federal government agency where small businesses can apply for loans, get management and financing advice, and learn about selling to the federal government. ANSWER Small Business Administration Service Corps of Retired Executives U.S. Chamber of Commerce National Business Incubators Association I DON'T KNOW YET

Small Business Administration

A product franchise gives you the right to do which of the following? ANSWER The right to produce and distribute a manufacturer's products using supplies purchased from the franchisor. The right to open a business using a franchisor's name and format for doing business. The right to produce non-trademarked goods sold under a different company's name. The right to sell trademarked goods purchased from a franchisor. I DON'T KNOW YET

The right to sell trademarked goods purchased from a franchisor.

Which of the following is true of small businesses? ANSWER They meet the needs of consumers rather than other businesses. They introduce fewer new products than large firms. They are major employers. They have fewer than 10 employees. I DON'T KNOW YET

They are major employers.

Which best describes most small businesses? ANSWER They have fewer than 50 employees. They have no employees. They have fewer than 10 employees. They have nearly 500 employees. I DON'T KNOW YET

They have no employees.

Which of the following is a trait of successful entrepreneurs? ANSWER They are rigid in their views. They innovate to realize a vision. They refuse to accept that they do not have complete control over events. They take few risks. I DON'T KNOW YET

They innovate to realize a vision.

Which of the following is true about microlenders? ANSWER They lend smaller amounts of money to business owners who might not qualify for conventional bank loans. They help launch initial public offerings. They are run by angel investors. They are run by venture capitalists. I DON'T KNOW YET

They lend smaller amounts of money to business owners who might not qualify for conventional bank loans.

Jim, a businessman, wishes to start a chain of grocery stores. However, all the banks he approaches turn him down due to a lack of direction in his ideas. Finally, Sheila, a bank manager, asks Jim to draft a formal document that outlines the nature of his business, its short-term and long-term goals, and the potential for its success. Sheila advises him to draft this document and approach the bank once more. The formal document that Jim is advised to draft is known as a __________. ANSWER operations plan mission statement business plan financial plan I DON'T KNOW YET

business plan

Sean, operates a store that employees five people. One day Sean noticed that many students from a college in the neighborhood purchased pre-made sandwiches and food from his store. So he decided that setting up a fast-food kiosk near campus would be a good opportunity for him. Due to other commitments, he handed over the store to his wife to run and now he does not take part in its day-to-day management. When Sean set up the kiosk, he became a(n) __________. ANSWER business owner supervisors entrepreneur manager I DON'T KNOW YET

entrepreneur

The right to sell trademarked goods purchased from the franchisor is the result of owning a __________. ANSWER business-format franchise product franchise manufacturing franchise contract franchise I DON'T KNOW YET

product franchise

Having a business plan will help an entrepreneur __________. ANSWER avoid angel investors avoid venture capitalists see if an idea isn't feasible obtain customers I DON'T KNOW YET

see if an idea isn't feasible