1.00 ENT Final Exam Review

Local governments strongly promote and support small businesses mainly due to which factor?

• A. Businesses serve only the local communities.

• B. Businesses are owned by one person.

• C. Businesses may become big businesses.

• D. Businesses are important to the economy.

Which statement is most likely to have a negative effect on domestic small-business growth?

• A. Involuntary tax reductions

• B. Restrictive loan policies

• C. Low interest rates

• D. Slow inflation

Which statement is true about entrepreneurship and small-business growth?

• A. Trade regulations have very little effect on small-business growth.

• B. Many people start entrepreneurial ventures during times of economic recession.

• C. Small business start-ups are taxed at a higher rate than multinational companies.

• D. Consumer spending is a primary factor that influences entrepreneurial

  success.

Which positive effect do small businesses have on the local community?

• A. Reduction of competition

• B. Pay in of taxes

• C. Limitation on job growth

• D. Charging of interest

What is a disadvantage of entrepreneurship?

• A. Fewer resources

• B. Personal satisfaction

• C. Lower taxes

• D. Uncertain income

Which statement is true regarding training for entrepreneurial ventures?

• A. Organization

• B. Optimism

• C. Innovation

• D. Determination

What is a trend that most likely affects the growth of entrepreneurial ventures?

• A. A rise in the desire for slow-response times

• B. The shift to an agricultural-based society

• C. A higher demand for more convenience products

• D. The reduced need for health care and related services

  Entrepreneurship

Which statement is true regarding training for entrepreneurial ventures?

• A. Once entrepreneurs are educated or trained in their business field, they rarely need further education.

• B. Most successful entrepreneurs have degrees from four-year colleges or universities.

• C. The type of training and education that entrepreneurs need depends on the nature of the start-up business.

• D. Most entrepreneurs must pass state-mandated exams to operate their business.

Which is a financial concern that entrepreneurs often face when starting new businesses?

• A. Irregular paychecks

• B. Long working hours

• C. Shorter vacations

• D. Lower production standards

What behavior is exhibited when an individual recognizes the possibility of an undesirable outcome and continues to work toward a goal?

• A. Creativity

• B. Self-discipline

• C. Risk-taking

• D. Flexibility