1.01-2.13 Test Review

Small businesses have a positive effect on the local community because they:

• Reduce Competition
• Pay Taxes
• Limit Job Growth
• Charge Interest

What is one of the main reasons why small businesses are strongly promoted and supported by localgovernment?

• They serve only their local communities.
• They are owned by one person.
• They may become a big business.
• They are important to the economy.

Which of the following statements is most likely to have a negative effect on domestic small-businessgrowth:

• Involuntary tax reductions
• Restrictive loan policies
• Low interest rates
• Slow inflation

Which of the following statements is true about entrepreneurship and small business growth:

• Trade regulations have very little effect on small-business growth.
• Many people start entrepreneurial ventures during times of economic recession.
• Small business start-ups are taxed at a higher rate than multinational companies.
• Consumer spending is a primary factor that influences entrepreneurial success.

Alaina needs advice and assistance in starting her new business venture, so she contacted the Service Corpsof Retired Executives (SCORE). Jack, a SCORE volunteer, agreed to act as Alaina's guide in the businessstart-up process. Jack is serving as Alaina's

• Intermediary
• Apprentice
• Entrepreneur
• Mentor

Which of the following sources of start-up information would you recommend to an entrepreneur looking forinformation about the average start-up and operation costs for a self-serve laundromat:

• Service Corps of Retired Executives
• Coin laundry trade association
• Local chamber of commerce
• Small business administration

A reliable source of general business start-up information is

• Wikipedia (www.wikipedia.org/wiki/Entrepreneurship).
• the Project Management Institute (www.pmi.org).
• the Small Business Administration (www.sba.gov).
• the National Retail Federation (www.nrf.com).

Entrepreneurial discovery is an important process in a free-enterprise economic system because anentrepreneur or small-business owner can

• satisfy an unmet demand.
• form a technological monopoly.
• improve economic sanctions.
• change legal requirements.

Which of the following is an example of a demographic trend that has encouraged entrepreneurial discovery:

• Interest rate fluctuations
• Increased cultural diversity
• Industry deregulation
• Technological advancements

Identifying new product opportunities usually requires a person to be

• Decisive
• Emotional
• Aware
• Indifferent