Chapter 1

Front

Which of the following is a major reason for the increased interest in small business? There is no major fear of being impacted by recession., There is a growing trend toward self-employment., The rate of profit achieved by small businesses is higher than that of big corporations., There are very few government regulations and paperwork for small businesses.

Back

There is a growing trend toward self-employment.

Front

Which of the following statements is true about the impact of small businesses and entrepreneurship on educational institutions? Entrepreneurship and small business management are accepted as academically respected disciplines by many high schools, colleges, and universities., Community colleges are reluctant to offer courses for small business owners., Today more students think working for big corporations is a safer haven than self-employment., Educational institutions have discovered that by teaching entrepreneurship they will be able to put a restriction on free enterprise.

Back

Entrepreneurship and small business management are accepted as academically respected disciplines by many high schools, colleges, and universities.

Front

An entrepreneurial venture is characterized by:

Back

innovative strategic practices and/or products.

Front

Which of the following is characteristic of a small business owner? Options: Is innovative and focuses primarily on profitability and growth, Perceives the business as being an extension of his or her personality, Starts and manages a business for many reasons other than furthering personal goals, Prefers a less relaxed and more aggressive approach to running the business

Back

Perceives the business as being an extension of his or her personality

Front

Smaller firms tend to:

Back

keep larger firms competitive.

Front

Which of the following best describes one of the contributions of small businesses?

Back

They are sources of new ideas or services that larger businesses may be unable to provide.

Front

Which of the following statements is true about small businesses? Options: They get easy financing that leads to too many choices for funding. Small businesses provide low employee job satisfaction owing to a lower volume of transactions. They are not subject to burdensome government regulations and paperwork. Inadequate management in small businesses creates problems for small business owners and entrepreneurs.

Back

Inadequate management in small businesses creates problems for small business owners and entrepreneurs.

Front

Which of the following is a problem faced by small businesses today? Lack of advertising, Lack of risk takers, No training at colleges and universities, Unexpected growth and financing issues

Back

Unexpected growth and financing issues

Front

Which of the following is a reason for the drastic changes in small business management trends?
- Accounting departments becoming independent of computer support
- Diverse shift away from people-related activities
- Improvements in communications and computer technology
- Excess supply of managerial talent

Back

Improvements in communications and computer technology

Front

Which of the following is the result of the trend in business to become more active globally? A. A growing number of large and small U.S. businesses are or are becoming foreign owned. B. The American consumer is increasingly noticing the change in managerial styles. C. The foreign-owned companies are increasingly adopting traditional managerial styles. D. A growing number of small business owners and managers are refraining from adapting to nontraditional managerial styles.

Back

A growing number of large and small U.S. businesses are or are becoming foreign owned.