BA 311 Small Business Management - Ch 1,2,3 &4 - EXAM#1

The universally accepted definition of the term small business is based only on the number of people employed by the firm.

• True

• False

Franchisees have limited power because they have a contract and relationship with a franchising organization.

• True

• False

Two general approaches that can help identify business ideas are _____ and _____ analyses.

• outside-in; inside-out

• industry; competitive

• upside-down; inside-out

• upward; downward

Which of the following best fits the definition of a small business?

• A manufacturer with 75 investors

• A hardware store franchise with 20 employees

• A fast-food franchise with locations in three states

• All of these are correct

Geraldo often would rather go fishing than work his business. According to Stephen Spinelli and Robert Adams, which entrepreneurial characteristics does Geraldo lack?

• Commitment

• Courage

• Creativity

• Tolerance of risk

Bill Gates and Steve Ballmer, founders of Microsoft, would be considered

• franchisors

• franchisees

• an entrepreneurial team

• sole proprietors

Which of the following is NOT a characteristic of the entrepreneur personality?

• Delegates authority

• Sees the business as a system

• Asks how the business must work

• Visualizes the future

Many entrepreneurs are highly motivated by the prospect of

• an easy life

• making money.

• freedom from long hours

• job security

Evelyn opened a small boutique catering to a very narrowly defined target market. Evelyn's competitive edge is

• the niche market

• customer focus

• quality performance

• innovation

Ethical issues

• seldom involve legal issues

• involve questions of right and wrong

• are always clearly defined

• often resolve themselves