101 test bank for entrepreneurial small business 4th edition by katz

Its preferred funding source is other people's money.. For a small business, the preferred funding source is other people's money, whereas for a high-growth venture, it is the owner's ow

Test Bank for Entrepreneurial Small Business 4th

Edition by Katz

70 Test Bank Multiple Choice Questions

21 Test Bank True – False Questions

10 Test Free Text Questions

(p 9) Which of the following is true of a traditional small business?

1 A It is usually a multi-site business.

2 B It generally has sales between $100,000 and $1,000,000 depending on the industry.

3 C It defines its schedules based on customer needs.

4 D It follows a continuous growth curve.

(p 8) Which of the following is true of a small business?

1 A Its preferred funding source is other people's money.

2 B It sells more when it is facing bankruptcy.

3 C It considers sales as more important than marketing.

4 D It focuses more on effectiveness than on efficiency.

(p 8) Which of the following describes the significance of an overall growth strategy?

1 A It represents a driver of the variety of entrepreneurship.

2 B It allows for one small business enterprise to incorporate in multiple states at the same time.

3 C It provides the owner a stake in the family business.

4 D It helps buyers to get familiar with new products.

(p 8) Which of the following is a difference between a small business and a high-growth venture?

1 A For a small business, the preferred funding source is other people's money, whereas for a high-growth venture, it is the owner's own money.

2 B For a small business, the personal control preference is to involve others, whereas a high-growth venture prefers to retain autonomy.

3 C A small business focuses on effectiveness, whereas a high-growth venture focuses on efficiency.

4 D A small business grows when necessary, whereas a high-growth venture grows when possible.

(p 9) _ are the smallest full-time business

1 A High-performing small businesses

2 B Traditional small businesses

3 C High-growth ventures

4 D Lifestyle businesses

(p 6) Small businesses are usually:

1 A imitative in nature.

2 B characterized by the novelty of their products.

3 C the same as high-growth ventures.

4 D not affected by market fluctuations.

(p 10) _ is a reward universally mentioned by

1 A Its preferred funding source is the owner's own money.

2 B Its metastrategy is imitation.

3 C It grows when necessary.

4 D It considers delegation essential.

(p 7) A person who becomes an owner by inheriting or

getting a stake in a family business is known as a _

1 A founder

2 B franchisor

3 C heir

4 D serial entrepreneur

(p 10) The ability of business owners to structure their lives

in the way that best suits their needs refers to:

(p 10) Tina runs her consultancy business from her home Working from home allows her to set her own schedule and take time off at her convenience so that she can be with her family The fact that Tina gets more time with her family can

1 A It starts small and grows very rapidly to become a big business.

2 B It represents about 20 percent of all businesses.

3 C It typically has sales of $25,000 a year or less.

4 D It aims to achieve growth rates of 25 percent or more a year.

(p 9) _ tend to level off after success defined by sales of between $100,000 and $1,000,000, depending on the

industry

1 A Lifestyle firms

2 B Traditional small businesses

3 C High-performing small businesses

4 D High-growth ventures

(p 8) Which of the following is true of a part-time firm?

1 A It starts small and stays very small.

2 B It has a continuous growth.

3 C Its success is defined by annual profits of $1,000,000.

4 D It aims to achieve growth rates of 25 percent or more a year.

(p 5) The _ is a U.S government agency that helps

people start a business and also provides them support and advocacy

1 A Small Business Administration

2 B U.S Department of Business Development

3 C U.S Department of Commerce

4 D U.S Entrepreneurial Administration

(p 10) Which of the following rewards refer to the money made from owning a business?

1 A use imitation as their metastrategy.

2 B start small but are intended to grow rapidly.

3 C cannot include a team of partners.

4 D do not delegate tasks.

(p 8) Which of the following is true of a high-growth

venture?

1 A It considers sales as more important than marketing.

2 B Its metastrategy is novelty.

3 C It focuses more on efficiency than on effectiveness.

4 D It does not allow for easy delegation of work or responsibilities.

(p 6) Truly entrepreneurial businesses are characterized by:

1 A the franchise they are associated with.

2 B the degree to which their products are imitative.

3 C the novelty in their products, services, or business models.

4 D the ease with which their product is accepted by the buyers.

(p 7) Which of the following is true of a franchise?

1 A It is the international term for all small businesses.

2 B It is a type of novelty organization.

3 C It is an organization that provides loans to start small businesses.

4 D It is a prepackaged business bought, rented, or leased from a company.

(p 7) A business run by the individual who owns it is

high-1 A main street businesses

2 B Wall Street businesses

3 C high-growth ventures

4 D universal businesses

(p 9) Which of the following is true of a high-performing small business?

1 A It often grows through multiple locations.

2 B It aims to achieve growth rates of 25 percent or more a year.

3 C It has sales of more than $1 million.

4 D It has low levels of professionalization.

(p 9) Which of the following is a characteristic of a

traditional small business?

1 A It is often a one-site business.

2 B It follows a continuous growth curve.

3 C It defines its schedules based on the owner's needs.

4 D It generally has sales between $100,000 and $1,000,000 depending on the industry.

(p 8) High-growth ventures differ from small businesses in that in high-growth ventures:

1 A the focus is on efficiency rather than effectiveness.

2 B the preferred source of funding is the owner's own money rather than other people's money.

3 C the human resource system is personalized rather than professionalized.

4 D the limitation of growth is dictated by market response rather than the owner's loss of control.

(p 9) Which of the following is a characteristic of a growth venture?

high-1 A It pursues low levels of professionalization.

2 B It levels off after operations settle into a consistent, money-making pattern.

3 C It aims to achieve growth rates of 25 percent or more a year.

4 D Its success is defined by sales of between $100,000 and $1,000,000 annually.

(p 9) Which of the following categories does the majority of small businesses fall under?

1 A High-growth ventures

2 B High-performing small businesses

3 C Lifetime/Part-time firms

4 D Traditional small business

(p 9) A traditional small business generally has sales of between:

4 D independent small business.

(p 10) Which of the following is a reward that is rarely

mentioned by entrepreneurs?

1 A To have a chance to build great wealth

2 B To have greater flexibility for personal and family life

3 C To continue a family tradition

4 D To develop an idea for a product

(p 8) Small businesses differ from high-growth ventures in that in small businesses:

1 A the focus is on effectiveness rather than efficiency.

2 B the preferred source of funding is the owner's own money rather than other people's money.

3 C the delegation of responsibilities is easy and necessary rather than difficult.

4 D the metastrategy is for novelty rather than imitation.

(p 9) Which of the following is true of the growth of a typical traditional small business?

1 A It tends to quickly level off after the owners operate long enough to learn the basics of making money.

2 B It levels off after operations settle into a consistent, money-making pattern generating income to provide a living for the owner.

3 C It grows at rates between 5 to 15 percent a year.

4 D It grows at rates of 25 percent or more a year.

(p 8) In lifestyle firms:

1 A success is defined by sales of between $100,000 and $1,000,000.

2 B schedules are defined by customer needs.

3 C the income generated usually provides a living for the owner and family.

4 D growth tends to quickly level off.

(p 8) Which of the following is a characteristic of a small business?

1 A Source of funding is primarily other people's money

(p 19) Virtual instant global entrepreneurship refers to:

1 A the transformation of a high-growth venture into a small business.

2 B a person becoming an owner by inheriting or getting a stake in a family

(p 13) John owns a small business that does computer

servicing Which of the following would represent boundary

as mentioned in the BRIE model in John's computer

servicing business?

1 A The employees that work under John

2 B The office in which John works

3 C The money earned by John from the business

4 D The desire to expand the business to writing software

(p 13) According to the BRIE model, which of the following

is true of a resource?

1 A It includes a business name or government registration.

2 B It refers to moving goods or services to others for money.

3 C It is the most frequently occurring element of the BRIE model.

4 D It includes the product or service to be offered.

(p 18) In factor-driven economies:

1 A entrepreneurship levels are in the middle range.

2 B entrepreneurship levels are very high.

3 C entrepreneurship levels are very low.

4 D entrepreneurship is not given any consideration.

(p 11) Which of the following is a myth about small

businesses?

1 A That failed entrepreneurs can succeed if they try again

2 B That a small business will never have enough financing

3 C That students have skills to start small businesses

4 D That small businesses can start during recession

(p 20) _ is an aspect of entrepreneurship that refers to doing the most work with the fewest resources

1 A Innovation

2 B Creation

3 C Efficiency

4 D Customer-focus

(p 20) _ is an aspect of entrepreneurship which looks at

a new thing or a new way of doing things

1 A entrepreneurship levels are in the middle range.

2 B entrepreneurship levels are very high.

3 C entrepreneurship levels are lower compared to factor-driven economies.

4 D entrepreneurship is not given any consideration.

(p 18) A nation where industrialization is the major force providing jobs, revenues and taxes, and where minimizing costs while maximizing productivity is a major goal is a(n):

1 A factor-driven economy.

2 B efficiency-driven economy.

3 C innovation-driven economy.

4 D effectiveness-driven economy.

(p 13) According to the BRIE model, which of the following falls under the boundary category?

1 A The financial resources of a company

2 B The desire to start a business

3 C An e-mail address of the company

4 D A product or service offered by the company

(p 12) Financing a business online through the collective involvement of others who provide donations, loans, or

1 A It involves the creation of self-sustaining charitable and civic organizations.

2 B It involves revitalizing government agencies.

3 C It is a form of entrepreneurship in which people own their own for-profit

business.

4 D It involves bringing new products or services to a market.

(p 20) Social entrepreneurship primarily involves a person

or group:

1 A creating new charitable and civic organizations which are financially

self-sufficient.

2 B bringing new products or services to market.

3 C owning their own for-profit business.

4 D revitalizing government agencies.

(p 19) Innovation-driven economies:

1 A are those where entrepreneurship becomes a key way to build the middle class.

2 B are nations where industrialization is becoming the major force providing jobs, revenues, and taxes.

3 C are focused on high-value-added manufacturing but are marked by a very large service sector.

4 D are those where entrepreneurship is essential to build personal wealth and break the cycle of low-wage jobs.

(p 15) In terms of new jobs, which of the following is true of

a small business?

1 A It does not employ people looking for part-time work.

2 B It is of no importance to existing jobs.

3 C It offers jobs to people with atypical work histories.

4 D It pays taxes on behalf of the people it hires.

(p 21) Effectuation refers to:

1 A the degree of attention a target market pays to an idea or organization.

2 B an approach used to create alternatives in uncertain environments.

3 C transforming a high-growth venture into a small business.

4 D a process of a person becoming an owner by inheriting or getting a stake in a family business.

(p 13) According to the BRIE model, which of the following sets a firm off from the buying or selling or bartering done casually by nonmerchants?

1 A Resources

2 B Boundary

3 C Intention

4 D Exchange

(p 20) Which of the following types of entrepreneurship

typically concentrates on innovation and customer-focus among all aspects of entrepreneurship?

1 A Public entrepreneurship

2 B Corporate entrepreneurship

3 C Independent entrepreneurship

4 D Social entrepreneurship

(p 13) Which of the following is the most frequently

occurring element of the BRIE model?

existing restaurants in Burnsville is an example of:

commercial space, or on the Internet represents:

2 B It creates organizations which are usually financially dependent on other firms.

3 C It cannot be initiated by a for-profit company.

4 D It does not include innovation as a key element.

(p 16) According to the U.S Small Business Administration, small businesses generate _ times the number of

patents per employee than do big businesses.

1 A entrepreneurship levels are in the middle range.

2 B entrepreneurship levels are very high.

3 C entrepreneurship levels are very low.

4 D entrepreneurship is not given any consideration.

(p 13) According to the BRIE model, _ sets up a

(p 13) According to the BRIE model, which of the following

is an element that is necessary to start a business?

1 A Boundary

2 B Recognition

3 C Efficiency

4 D Income

(p 12) Bootstrapping refers to:

1 A funding a business online through the collective involvement of others who provide loans.

2 B buying, renting, or leasing a prepackaged business from another company.

3 C inheriting or being given a stake in a family business.

4 D using low-cost or free techniques to minimize the cost of doing business.

(p 12) Anna helps brides-to-be choose wedding gowns that best suit their requirements and budget, and also helps them with where they can find the right dress She has made her home her virtual office; she does not require external

financing Anna is using _ to run her small business

(p 10) Flexibility rewards refer to the money made from owning a business

(p 17) High-growth ventures and big businesses generally

do not succeed without small businesses offering