Quiz 6

Question 1

Southwest College has received a government grant to establish a business incubator. This facility will offer:
A. local government agencies assistance in obtaining funds for urban renewal.
B. area businesses advice on health care benefits for their employees.
C. venture capitalists an opportunity to identify new entrepreneurs.
D. new businesses low-cost office space with basic business services.


Question 2

Caleb would like to operate his own business. He is considering the possibility of buying an existing business. If he looks more carefully into this option, he is likely to find that:

A. very few owners of small businesses have any interest in selling.
B. it is almost always cheaper to start a new business than to buy an existing firm.
C. the fairest way to determine the value of an existing business is to take into account what the business owns, what it earns, and what makes it unique.
D. any business that is up for sale is likely to be experiencing serious financial problems.

Question 3

Angel investors are government agencies that invest money in potentially hot new companies before they go public.
A. True
B. False

Question 4

Small businesses dominate trade in global markets.
A. True
B. False

Question 5

Entrepreneurs should avoid starting businesses in the same market in which they were previously employed.
A. True
B. False

Question 6

Government anti-discrimination laws prohibit the Small Business Administration from offering loans specifically aimed towards women and/or minorities.
A. True
B. False

Question 7

Which of the following helps explain the growth of home-based businesses?
A. Many cities regulate the type of businesses that are allowed in residential neighborhoods.
B. It is often difficult to separate work and family tasks.
C. Corporate downsizing has made workers aware there is no such thing as job security.
D. Many people enjoy the security of a regular paycheck.

Question 8

When comparing various types of small businesses, the firms that are easiest to start tend to be those that:
A. offer the greatest security.
B. have the greatest prospect of long-term growth.
C. have high failure rates.
D. involve professional services, such as dentistry or veterinary medicine.

Question 9

One way to control the legal costs associated with operating a small business is to purchase a prepaid legal plan.
A. True
B. False

Question 10

Entrepreneurial teams tend to have more problems than do individual entrepreneurs because creative skills do not blend well with production and marketing skills in a business venture.
A. True
B. False

Question 11

Entrepreneurs must learn to avoid risk if they hope to achieve business success.
A. True
B. False

Question 12

One advantage enjoyed by small businesses in international markets is that overseas buyers enjoy dealing with individuals rather than large corporate bureaucracies.
A. True
B. False

Question 13

Most entrepreneurs today are motivated solely by the desire to earn a profit.
A. True
B. False

Question 14

There are thousands of small manufacturing businesses that could export their products but do not.
A. True
B. False

Question 15

When "poor management" is cited as a cause of small business failure it likely includes poor capitalization.
A. True
B. False