Chapter 01 Starting Your Small Business Answer Key
Multiple Choice Questions
1.
Which of the following is a major reason for the increased interest in small business?
2.
Which of the following statements is true about the impact of small businesses and
entrepreneurship on educational institutions?
3.
Which of the following statements is true about small businesses?
4.
Which of the following features must a business have to be classified as small?
5.
A _____ is any business that is independently owned and operated and is not dominant in
its field of operation.
6.
An entrepreneurial venture is characterized by:
7.
Which of the following is characteristic of a small business owner?
8.
Smaller firms tend to:
9.
Which of the following best describes one of the contributions of small businesses?
10.
Which of the following statements is true about small businesses?
11.
Which of the following is a problem faced by small businesses today?
12.
Which of the following is a reason for the drastic changes in small business management
trends?
13.
_____ is the fundamental redesign of a business, often resulting in reduction in size and
markets.
14.
_____ refers to the process of reducing the number of employees to increase efficiency.
15.
Which of the following is the result of the trend in business to become more active
globally?
16.
Which of the following is a reason for starting a small business?
17.
A new small business owner’s primary motive is usually _____.
18.
Which of the following refers to an introspective personal analysis that can help a small
business owner determine whether the combination of qualities he or she has will help
him or her succeed as a small business owner?
19.
According to the Small Business Administration’s (SBA) Office of Advocacy
(www.sba.gov), only _____ tend to be dominated by larger businesses.
20.
The occupation with the fastest growth overall is _____.
21.
Which of the following is true about the first stage of the typical growth pattern that small
businesses tend to follow?
22.
Which of the following is true about the final stage of the typical growth pattern that small
businesses tend to follow?
23.
Which of the following statements is true about the typical growth pattern of a small
business?
Difficulty: 2 Medium
Learning Objective: 01-08 Identify some of the areas of concern for small business owners.
24.
Learning Objective: 01-08 Identify some of the areas of concern for small business owners.
_____ is a voluntary decision to terminate a business.
25.
Learning Objective: 01-08 Identify some of the areas of concern for small business owners.
Mark opened a café in his neighborhood. Soon his café became very popular, and his
revenues started increasing. Steve, the owner of a popular restaurant, saw Mark’s success
and asked him to join his restaurant. The financial incentive that Steve offered Mark was
more than what he earned at his café. Moreover, Mark would not have to face the daily
hassles of managing everything on his own. Mark decided to shut down his café and join
the restaurant. This is an example of:
26.
John opened All-for-Shop, a small retail outlet, in his neighborhood. He could not sustain it
for more than a year because of huge losses and chose to shut it down. Fortunately, he did
not have any creditors. Which of the following does the situation describe?
27.
Which of the following statements is true about failure and small businesses?
28.
_____ nurture young firms and help them to survive and grow during the startup period
when they are most vulnerable.
29.
Which of the following does a business incubator do to help small business owners
succeed?
30.
Which of the following is the main goal of an incubation program?
True / False Questions
31.
Small firms generate most new private employment.
32.
Today more students think self-employment is a safer haven than working for big
corporations.
33.
The growth rate of the general workforce is always greater than the growth rate of self-
employment.
34.
A small business is one that is owned and operated by a group of entrepreneurs and is
dominant in its field of operation.
35.
An entrepreneurial venture may never grow large, and the owners may not want it to, as
they prefer a more relaxed and less aggressive approach to running the business.
36.
One of the unique contributions of small businesses is that they keep larger firms
competitive.