MAN3025 Chapter 5 Quiz

A niche market is: a market in which several large firms compete. a market in which customer needs are generic in nature. a segment of a market that is not currently being exploited. an area of organizational threat.

a segment of a market that is not currently being exploited.

Which of the following is an example of a business in the service industry? An automobile dealership A florist A car rental agency A department store

A car rental agency

Which of the following is false about control systems? Control systems are not needed to keep a business on track. Weak control systems can lead to serious problems. Effective control systems alert entrepreneurs to serious problems. A business may not survive without a good control system

Control systems are not needed to keep a business on track.

Which of the following is required to help alert entrepreneurs to potential trouble? A positive outlook on life Dedication Sufficient capital Effective control systems

Effective control systems

Which of the following is true of SBA financial programs? Managers need approval from the SBA before making major decisions. They require a representative on the board of directors of a company. Eligible firms must be unable to get private financing at reasonable terms. They supply capital in return for stock.

Eligible firms must be unable to get private financing at reasonable terms.

Which of the following statements is true of new businesses? Luck plays no role in the success of businesses. A good outlook on life is irrelevant when starting a new business. Control systems are unimportant when starting a new business. Insufficient capital can contribute to new business failure.

Insufficient capital can contribute to new business failure.

Which of the following is an advantage of a franchise? Its start-up costs are either very small or negligent. It lets franchisers grow by using the investment money provided by franchisees. It allows a franchise to build a business from a scratch using its own business model. It allows each franchise outlet to be vastly different from other outlets

It lets franchisers grow by using the investment money provided by franchisees.

Which of the following statements on job creation is true? Larger firms hire at a faster rate than smaller firms. Large companies are the last to lay off workers during economic downswings. Small firms are the last to hire in times of economic recovery. Business size, more than entrepreneurial business success, accounts for most new job creation.

Large companies are the last to lay off workers during economic downswings.

Which of the following statements on small businesses is true? All new start-ups are in the field of high-tech communication. Small businesses sell consumers most of the products made by big manufacturers. More major innovations come from big businesses than small businesses. Big companies are the first to lay off workers during economic downswings.

Small businesses sell consumers most of the products made by big manufacturers.

Which of the following is true of innovation? All successful new start-ups are innovative dot-com companies. All successful software firms started out as large organizations. Small businesses supply over half of all innovations in the U.S. marketplace each year. Innovations are less likely to come from small businesses than from big businesses.

Small businesses supply over half of all innovations in the U.S. marketplace each year.

Which of the following is true of small businesses? Small businesses have a weak presence in the economy. Jobs are created solely by small entrepreneurial companies. Small businesses have no impact on the world's mature economies. Small firms specializing in international business create many new jobs.

Small firms specializing in international business create many new jobs.

Which of the following is true of most successful entrepreneurs? They succeed straight out of college. They launch their ventures in their spare time. They succeed alone. They carefully analyze market conditions

They carefully analyze market conditions

Miriam pools all her savings to open a bakery that specializes in wedding cakes. She bakes the cakes, runs the store, and creates a website that allows customers to place orders online. Miriam is a(n) _____. small-business investor venture capitalist wholesaler entrepreneur

entrepreneur

A small business: is publicly owned. meaningfully influences its environment. has only one retail outlet. is owned by one individual or a small group

is owned by one individual or a small group

Due to the strong economies of scale, small businesses generally do not do as well as large businesses in the _____ segment. retailing transportation manufacturing construction

manufacturing

Steven is a polymer scientist with the motivation and expertise needed to start his own business. If he chooses to finance his business in the same way that most new businesspeople finance theirs, he will: rely on personal resources. borrow money from a lender. form a strategic alliance. approach a venture capital company.

rely on personal resources.

A retail business: requires fewer employees than wholesalers. sells directly to producers. sells products manufactured by other firms. offers products to wholesalers for sale.

sells products manufactured by other firms.

A two-person software development company with annual sales of $100,000 would be considered a: large business. small business. joint venture. franchise.

small business.

Small-business investment companies (SBICs): take a more balanced approach in their choices than venture capital companies. demand a representative on the board of directors of the business. have immediate participation loan programs. have strict eligibility guidelines.

take a more balanced approach in their choices than venture capital companies.

Which of the following is true of entrepreneurs? They run someone else's business. They hire professional managers to run their businesses. They assume the risk of the venture but are not actively involved in operating it. They take a personal stake in the success or failure of the business.

They take a personal stake in the success or failure of the business.