Tutorial Activity 2

Multiple Choice

Small businesses operate only in the service industry, not in manufacturing.

• True

• False

Multiple Choice

About half of small businesses are in the production industries.

• True

• False

Multiple Choice

Small businesses are generally managed by professional managers.

• True

• False

Multiple Choice

A new business is built around the entrepreneur.

• True

• False

Multiple Choice

The main reasons small businesses fail are poor management skills on the part of owners, inadequate funding, and poor planning.

• True

• False

Multiple Choice

Small businesses are prone to failure.

• True

• False

Multiple Choice

According to a government source, more than half of the 20th century's technological innovations came from individual inventors and small companies.

• True

• False

Multiple Choice

Small firms have traditionally added more than their proportional share of new jobs to the economy.

• True

• False

Multiple Choice

Large companies often find it less expensive to purchase parts from small companies than to manufacture their own.

• True

• False

Multiple Choice

Because of small-business competition, large companies must become more efficient and responsive to consumers' needs.

• True

• False

Multiple Choice

A main disadvantage of a small business is that employees and customers usually develop too close of a relationship.

• True

• False.

Multiple Choice

For those who like dealing with people, small business is the place to be.

• True

• False

Multiple Choice

Statistically, one can expect about 50 percent of new businesses to fail within five years of their founding.

• True

• False

Multiple Choice

Some advantages of the sole proprietorship also apply to the small business.

• True

• False

Multiple Choice

Money invested in small firms with the potential to become successful is known as venture capital.

• True

• False

Multiple Choice

SME Corporation is a government agency that solely provides venture capital/grants and loans to small enterprises.

• True

• False

Multiple Choice

Small businesses are expected to remain the dominant form of organization in this country.

• True

• False

Multiple Choice

Entrepreneurs should focus solely on short-term goals and not plan for the long-term.

• True

• False

Multiple Choice

Small businesses have legal obligations to protect customer data and privacy, which may vary depending on local laws and regulations

• True

• False

Multiple Choice

Small businesses may be eligible for government grants or funding programs, depending on their industry, location, and specific circumstances.

• True

• False

Multiple Choice

Entrepreneurs in Malaysia can register their businesses online through the Companies Commission of Malaysia (SSM) portal.

• True

• False

Multiple Choice

Entrepreneurs must always come up with entirely new and groundbreaking ideas to succeed.

• True

• False

Multiple Choice

Entrepreneurship is a solitary journey, and teamwork is not essential.

• True

• False

Multiple Choice

Entrepreneurs can achieve success without facing failures or setbacks.

• True

• False

Multiple Choice

All entrepreneurs must have access to substantial financial resources to start a business.

• True

• False