WorksheetsChapter 3 - Entrepreneurship, New Ventures, & Business Ownership
Total questions: 20
Worksheet time: 10mins
Which of the following industry groups is the fastest growing segment of small business enterprise?
Manufacturing
Wholesaling
Retailing
Services
Why is it difficult to compare relative job growth for different-sized businesses?
Sourcing up-to-date employment figures is difficult.
It is hard to determine the cutoff point at which a small business becomes a large business.
Many small businesses experience rapid unreported growth.
Staff size of small businesses tends to change faster than staff size of big businesses.
When an investor is not interested in owning their own business, why do they need to understand entrepreneurship?
To understand why someone would want to work so hard for a small return
To determine the key characteristics of success
To assess the market potential for up-and-coming businesses
To understand how to convert a great idea to a profitable idea
The contribution a small business on the U.S. economy is measured based on its impact to which economic systems?
International trade, interest rates, and the service industry
Job creation, contributions to big business, and innovation
The service industry, the stock market, and job creation
Bank loans and innovation
Which of the following BEST defines those who assume the risk of business ownership?
Entrepreneurs
Corporate partners
The Small Business Administration
Banks
What is the process of seeking business opportunities under conditions of risk?
Investment
Leadership
Diversification
Entrepreneurship
What does an entrepreneur use to summarize his or her business strategy for a proposed new venture?
Success chart
Director's guideline
Financial blueprint
Business plan
What is considered to be a significant disadvantage of owning a franchise?
Operational guidelines
Double taxation
Start-up costs
Competition
What does a start-up company need in order to estimate the required size of a plant, store, or office, inventory levels, and size of staff?
Sales forecast
Business objective
Tax estimate
Funding source
What is the major drawback of accepting venture capital?
Having to pay high interest rates
Facing a short repayment period
Sharing company control
Having to write proposals
What is first mover advantage?
The concept that the first in the market will make the most money
The concept that there is an advantage in leaving a market when it becomes flooded
The concept that there is more risk being first, but also more reward, if successful
The concept that a firm who exploits an opportunity before others has an advantage
What is the advantage to starting a business from scratch instead of buying an existing business?
There are no ill-effects from the previous owner.
There is a proven ability to attract customers.
There is a stronger relationship with lenders and other stakeholders.
There is a clearer picture of what to expect in terms of start-up.
Which of the following is the MOST significant recent trend in small-business start-ups?
Emergence of e-commerce
Increased opportunities for minorities
Increased opportunities for women
Entrepreneurs who cross over from big business
Which of the following factors MOST contributes to small business failure?
Bad product design
Time spent raising capital
Managerial incompetence or inexperience
Bad product design
A new business should have enough capital to operate at least how many months without earning a profit?
2
4
6
9
In which business sector are cooperatives still important?
Manufacturing
Agriculture
Automotive
Healthcare
What is a major drawback of sole proprietorships?
Low start-up costs
Structured hours
Work flexibility
Unlimited liability
What type of business has two or more owners who share in the operation of the firm and are financially responsible for its debts?
Corporation
Cooperative
Conglomerate
Partnership
Why are lenders most willing to loan to corporations?
Continuity and legal status are assured
Links with owners and founders are established
Commitment to expansion is readily available
Brand and marketing strategies can be diversified
What is the biggest advantage of incorporating?
Increased profits
Limited liability
Increased talent pool
Tax advantage
