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WorksheetsSmall Business Management S1 Final Exam Review
Total questions: 56
Worksheet time: 28mins
One of the most significant economic developments in recent business history relates to the ________.
growth of blue-chip corporations
development of Pacific Rim countries
entrepreneurial spirit
additional employment opportunities offered by government institutions
The profile of an entrepreneur includes_________.
a desire for responsibility and moderate risk
confidence in the ability to succeed and determination
a high level of energy, a desire for immediate feedback and a future orientation
All the above
An entrepreneur is one who_________.
is willing to attempt to implement a business concept and then give up if it does not meet immediate expectations
understands the process of developing an idea and does not need to understand what it means to bring that idea to a viable business concept
knows that the concept they are about to develop will result in a profitable business
creates a new business concept for the purpose of achieving profit and growth by assembling the necessary resources to capitalize on identified opportunities
All of the following are characteristics of the typical entrepreneur except_________.
confidence in his/her ability to succeed
value of money over achievement
desire for immediate feedback
a future orientation
Entrepreneurs who repeatedly start businesses and grow to a sustainable size before striking out again are known as ____________ entrepreneurs.
opportunistic
persistent
serial
classic
Entrepreneurs typically possess ___________.
the ability to easily access capital
a set of unique skills that is usually accompanied by advanced degrees in several areas
a high level of commitment, have a tolerance for ambiguity, are flexible and tenacious
specialized technical abilities
Which of the following is a benefit of entrepreneurship?
The opportunity to gain control over your own destiny.
The opportunity to reach your full potential.
The opportunity to do what you enjoy.
All of the above
Potential drawbacks of entrepreneurship may include ________________.
uncertainty of income, risk, long hours, and high stress
uncertainty of income, risk, easy hours, and frequent vacations
uncertainty of income, risk, long hours, and the immediate accumulation of wealth
certainty of income, risk, long hours, and high stress
Which of the following is NOT one of the forces driving the entrepreneurial trend in our country?
Shift away from a service economy.
Independent lifestyle.
International opportunities.
E-commerce and the World Wide Web.
Entrepreneurs may find benefit from the Internet due to its potential ____________.
if the organization is willing to invest millions of dollars in this effort
only if the entrepreneur has a high level of technical abilities
as a relatively low-cost solution to expand its revenue-generating abilities
to take all pressure off other attributes of the business venture
Which of the following statements concerning small businesses and international markets is false?
Although terrorism and global recession have slowed the growth of international trade somewhat, global opportunities for small businesses have a long-term positive outlook.
Although the U.S. is an attractive market, approximately 95 percent of the world's population lives outside its borders.
Because exporting is so complex and requires a company to have so many international experts on staff, exporting is not feasible for small businesses.
Small companies comprise 97 percent of all businesses engaged in exporting, yet they account for only 30 percent of the nation's export sales.
Small companies that have expanded successfully into foreign markets tend to rely on all but which of the following strategies?
Research foreign markets thoroughly.
Focus on many countries initially.
Utilize government resources designed to help small companies establish an international presence.
Forge alliances with local partners.
Entrepreneurial couples who work together as co-owners of their business are referred to as __________.
dual entrepreneurs
corporate dropouts
corporate cast-offs
copreneurs
The demographic attributes of successful entrepreneurs are __________.
limited to specific ages, genders, and ethnic backgrounds
uncertain and have not been fully studied or analyzed
are key predictors that determine how long the business will survive
highly diverse relating to age, gender, and ethnicity
Which of the following statements about women-owned businesses is false?
The businesses women start tend to be smaller than those men start.
Women own about 28 percent of all privately-held businesses in the U.S.
The number of women-owned businesses is growing slower than the national average.
Women-owned companies are far less likely to attract equity capital investments as those that men start.
Which of the following is not a characteristic of a successful working relationship between copreneurs?
A clear definition of one partner as "boss" and the other as "subordinate".
Compatible business and life goals.
Complementary business skills.
A clear division of roles and authority based on each partner's skills and abilities.
Melinda and John Perez, both corporate attorneys in New York City, have grown tired of their lengthy daily commute, the stress of their jobs, and the overbearing policies of their employers. They have decided to leave their six-figure jobs and together open a guide service in Wyoming. Melinda and John are examples of _____________.
corporate castoffs and corporate dropouts
corporate dropouts and copreneurs
corporate castoffs and copreneurs
copreneurs and serial entrepreneurs
The nation's small businesses ______________.
employ more than 49 percent of the nation's private sector workforce
create more jobs than do big businesses
account for 47 percent of business sales
All of the above
The majority of small companies are concentrated in the ________ and ________ industries.
manufacturing; retail
manufacturing; service
retail; service
wholesale; retail
Small companies are incubators of new sales ideas, products, and services and create ________ times more patents per employee than large companies.
3
5
10
16
One hallmark of successful entrepreneurs is the ability to ____________.
be willing to gamble
fail intelligently
overlook past successes
repeat the same mistake
John has come to you for advice on starting a business venture. He wants to know the best way to gain the experience he'll need. You suggest that he _______________.
read a small business book
seek knowledge and experience in the field he wishes to enter
determine his weaknesses and return to school for a term or two
just jump in and learn as he goes
Most startup companies can expect to need ________ capital than they anticipate.
less
the same
more
within 10% of the
The primary cause of small business failures is ___________.
the lack of capital
management mistakes
poor location
improper inventory control
Entrepreneurs tend to be overly ________ and commonly misjudge the ________ requirements of going into business.
optimistic; personal
optimistic; financial
pessimistic; financial
optimistic; professional
Which of the following is/are true regarding business plans?
Provide a pathway to success.
Allow entrepreneurs to replace faulty assumptions with facts before making the decision to go into business.
Create a benchmark against which entrepreneurs can measure actual company performance.
All of the above
Entrepreneurs can increase their chances for success if they ______________.
know their business in depth and develop a solid business plan
manage their financial resources and understand financial statements
learn to manage people and keep in touch with how they react to stress and balance their health needs with the needs of the business
All of the above
Ethical behavior is doing what is __________.
"right"
"profitable"
"credible"
All of the above
The various groups and individuals who affect and are affected by a business are called____.
stockholders
stakeholders
owners
managers
Actions that are legal, however, may not be_______.
ethical
complex
profitable
doable
According to the ________, one should "treat other people the way you would like them to treat you."
television test
utilitarian principle
family test
golden rule
________ is a written statement of the standards of behavior and ethical principles a company expects from its employees.
Company credo
Company annual report
Company vision
Code of ethics
Which one of the following is not a simple way by which small businesses can be socially responsible?
Encourage reinventing
Support local fundraisers
Join in community service
Reduce energy usage
The three "R's" of socially responsible business are "reuse," "recycle," and "__________".
reenergize
reinvent
reduce
retrofit
The ________ population is the fastest-growing sector in the United States.
Asian
African-American
Hispanic
Caucasian
Which of the following is a consumer right per the Consumer Bill of Rights?
Right to Sanity
Right to Know
Right to Profit
Right to Return
Experts estimate that ____ percent of companies worldwide engage in some type of socially responsible activity.
25
50
75
80
The ability to develop new ideas and to discover new ways of looking at problems and opportunities is called ________.
entrepreneurship
innovation
creativity
creative thinking
An entrepreneurial "secret" for creating value in the marketplace is_______.
applying creativity and innovation to solve problems
creating new products and services
learning by doing
applying lessons learned from history
Entrepreneurship is a constant process that relies on __________.
creativity, innovation, and profit
the ability to win over the consumer
creativity, innovation, and application in the marketplace
intellectual property rights
______ is necessary for building a competitive advantage and for business survival.
One single idea
A motivated owner
Creativity
A low-priced product
Creativity often involves creating something from nothing. However, it is more likely to result in ___________.
elaborating on the present
putting old things together in new ways
taking something away to create something simpler or better
All of the above
When developing creative solutions to modern problems, entrepreneurs must ________.
go beyond merely using whatever has worked in the past
limit the creative process to only profitable ventures
remember what has worked in the past
pay attention to limiting factors
Research into the operation of the human brain shows that each hemisphere of the brain ________.
develops symmetrically
controls similar functions
does not dominate the other hemisphere
processes information differently
All of the following represent barriers to creativity that entrepreneurs impose upon themselves except _______.
focusing on being too logical
being too practical
blindly following rules
searching for more than one answer
Entrepreneurs can stimulate their own creativity and encourage it among workers by _________.
expecting and tolerating failure
avoiding problems
limiting rewards
not taking chances
Employees must be given the tools and resources they need to be creative. One of the most valuable set of resources is ________.
setting limits and providing challenges
establishing rules and guidelines
time, support and encouragement
reinforce traditional problem solving methods
Which stage of the creative process requires one to develop a solid understanding of the problem or decision?
Investigation
Preparation
Illumination
Verification
________ thinking is the ability to see similarities and ________ thinking is the ability to see differences among various data and events.
Divergent; convergent
Convergent; divergent
Convergent; transformational
None of the above
The focus of which of the following step in the creative process is to transform the idea into reality?
Implementation
Preparation
Illumination
Verification
_________ is a process in which a small group of people interacts to produce a large quantity of imaginative ideas.
Groupthink
Mind-mapping
Brainstorming
Prototyping
Mind mapping is a useful tool for jump-starting creativity. It includes all of the following except _________.
sketching a picture to symbolize the problem or area of focus in the center of a sheet of paper
writing down every idea that comes into your mind, connecting each idea to the central picture
allowing your mind to rest for a few minutes before integrating the ideas
forcing creativity when ideas start to trickle
The three principles (three Rs) of rapid prototyping are _______.
develop a rough model, rapidly, and for the right price
develop a complete model, rapidly, and for the right problem
develop a rough model, rapidly, and for the right problem
develop a right model, roughly, and for the right price
To which governmental office must applications for patents be submitted?
The U.S. Patent and Trademark Office
The individual State Offices of Patent Development
The Federal Trade Commission
The Securities and Exchange Commission
Any distinctive word, phrase, symbol, name, or logo a firm uses to distinguish itself or its products is called a _______.
trademark
patent
copyright
service mark
A _______ is an exclusive right that protects the creators of original works such as literary, dramatic, musical, and artistic works.
trademark
patent
copyright
service mark
