CH#2 Small Business Mgmt,Entrepreneurship & Ownership

Question 1

Major advantage of a sole proprietorship is that the owner has complete control over business.

Accepted Answer

True

Question 2

The time span for the innovation phase may be

Accepted Answer

Several months or even several years

Question 3

Rubin's job involves identifying ideas/assuming the risk to make these ideas happen.She is a/an

Accepted Answer

Entrepreneur

Question 4

Entrepreneurship primarily involves which phase of business?

Accepted Answer

The startup process

Question 5

Which percentage of new business owners have had at least some college education?

Accepted Answer

60 percent

Question 6

Entrepreneurs recognize an opportunity and start a business to take advantage of it.

Accepted Answer

True

Question 7

A small business manager and an entrepreneur perform the same functions.

Accepted Answer

False

Question 8

The implementation phase in the entrepreneurial process involves all but which of the following

Accepted Answer

Developing an advertising campaign

Question 9

In growth stage of the startup process model, what is the primary goal of the small business?

Accepted Answer

Reaching critical mass (survival)

Question 10

The ability to see,conceive,& create new & unique products, services, and processes is known as

Accepted Answer

Innovation

Question 11

A contract between partners that defines obligations and responsibilities of business owners is

Accepted Answer

Article of Partnership

Question 12

The entrepreneurial process in the startup process model begins with

Accepted Answer

An innovative idea refined as the idea is thought through

Question 13

Pooled talent, pooled resources, easy to form, tax advantages of which form of business?

Accepted Answer

Partnerships

Question 14

Which of the following forms of business ownership brings in themost business generated revenue

Accepted Answer

Corporations

Question 15

The major disadvantage of a sole proprietorship is limited liability.

Accepted Answer

False

Question 16

Independence and control over their own lives are reasons many people begin small businesses.

Accepted Answer

True

Question 17

Which disadvantage of soleproprietorships is around the fact that capital is difficult to raise

Accepted Answer

Limited resources

Question 18

The "right of first refusal" refers to which of the following?

Accepted Answer

Partners get 1st chance at buyingthe selling partners shares

Question 19

In the end, every business will eventually reach the harvest stage.

Accepted Answer

False

Question 20

In the triggering stage,which personal characteristics are needed by the small business owner?

Accepted Answer

Commitment

Question 21

A sole proprietorship is owned by two or more persons.

Accepted Answer

False

Question 22

The three forms of business ownership include all but which of the following?

Accepted Answer

Joint ventures

Question 23

In a limited partnership, at least one partner

Accepted Answer

Has unlimited liability

Question 24

The typical entrepreneur tends to accept moderate risk only after careful examination.

Accepted Answer

True

Question 25

When does the entrepreneurship stage end and the small business management stage begin?

Accepted Answer

After the entrepreneurial event ends

Question 26

Limited liability, increased access to resources, & easy transfer of ownership are advant of a

Accepted Answer

Corporation

Question 27

Forces that occur outside of the business that affect the business and its owners are

Accepted Answer

Environmental factors

Question 28

One of the most serious problems that can threaten a partnership is managerial conflict.

Accepted Answer

True

Question 29

Income uncertainty is one of the most challenging aspects of starting a new business.

Accepted Answer

True

Question 30

Which form of business organization is easiest to open and easiest to close?

Accepted Answer

Sole proprietorship

Question 31

Corporations that sell shares of stock to the public & are listed on the stock exchange are

Accepted Answer

Public corporations

Question 32

The primary reason most people go into business for themselves is to gain the respect of others

Accepted Answer

False

Question 33

A small business manager faces which of the following environmental forces?

Accepted Answer

Hiring and retaining employees

Question 34

Which of the following is not prerequisite for becoming a successful entrepreneur?

Accepted Answer

Education

Question 35

Unlimited liability, management conflict potential, and less independence are disadvantages of

Accepted Answer

Partnerships

Question 36

Limited liability is the major advantage of forming a business as a corporation.

Accepted Answer

True

Question 37

Which two areas of coursework are the fastest growing subjects in business schools?

Accepted Answer

Entrepreneurship and Small Business Management

Question 38

The most common form of business in the United States today is the corporation.

Accepted Answer

False

Question 39

__is the entrepreneurial behavior that involves the expectation of high levels of growth/profit

Accepted Answer

Performance intention

Question 40

The legal&administrative costs are 1 of the major disadvant of which form of business ownership

Accepted Answer

Corporations

Question 41

Which form of business ownership is the most complicated to form?

Accepted Answer

Corporations

Question 42

Document describing how a business is formed is referred to as articles of incorporation.

Accepted Answer

True

Question 43

About half of all business owners choose to go into business for themselves because they

Accepted Answer

Like the challenge

Question 44

Which of the following is the most common form of business ownership?

Accepted Answer

Sole proprietorships

Question 45

The trends for small businesses in the US from 1980-2003 show the greatest increase in the # of

Accepted Answer

Very small businesses

Question 46

Expensive to start, complex to maintain, and double taxation are disadvantages of

Accepted Answer

Corporation

Question 47

The single biggest disadvantage of sole proprietorships is which of the following?

Accepted Answer

Unlimited liability

Question 48

Financial risks, material risks, & psychological risks are all risks faced by the entrepreneur.

Accepted Answer

True

Question 49

One of the reasons most people start their own business is to

Accepted Answer

Use their skills/abilities

Question 50

The biggest advantage of partnerships is the pooling of talents and resources.

Accepted Answer

True

CH#2 Small Business Mgmt,Entrepreneurship & Ownership

Questions 50

CH#2 Small Business Mgmt,Entrepreneurship & Ownership

Questions 50