57. Anthony is an employee of a textbook publisher. However, his desire is to establish a
home-based business providing his services to a variety of publishers. Anthony’s primary
motivation is to escape the 9 to 5 world of corporate publishing and to enjoy the opportunity of
working for himself. Anthony is an example of a micropreneur.
58. Kylie is employed by Street Wheels, a large corporation that produces accessories for
scooters, bicycles, and other children’s vehicles. She is a creative force within the company and
has helped create and launch several new successful products. Kylie is an example of an
intrapreneur.
59. Jon received a letter in the mail explaining that HE COULD EARN THOUSANDS!!!! by
working just a few hours from home. Most likely Jon’s letter was a work–at-home scam.
60. The United States government views entrepreneurship as a result of an individual’s self–
motivation. The government can do very little to encourage an individual to become an
entrepreneur.
61. When Kelsey began the Cookie Kitchen, she located the operation at a small business
center to get help with accounting, legal advice, and secretarial help for a very low cost. Electing
to join the incubator helped her company to survive because it provided assistance while her
company was in its infancy.
62. The principles of management of a large business are similar to the principles of
management of a small business.
63. To be classified as a small business, a firm must have no more than 100 employees.
64. According to the Small Business Administration’s definition, small businesses are
independently owned and operated.
65. A business is considered small by comparing its size to others in the same industry.
66. Small businesses create 65% of the new jobs in the United States each year.
67. Small businesses account for over 50% of the U.S.’s gross domestic product (GDP).
68. Upwards of 80% of all U.S. workers find their first job in small business.
69. Of all nonfarm businesses in the United States, almost 97% are considered small by the
70. Compared to small businesses, large firms have a greater ability to provide personalized
customer service.
71. Big businesses do not serve all the needs of a market.
72. Economist Bruce Kirchhoff contends that business failures are much lower than
traditionally reported.
73. The most common small business failures occur in businesses that are the easiest to
start.
74. Only about 10% of all businesses qualify as small businesses using the definition of the
Small Business Administration.
75. The small business sector that has the best chance of significant growth is legal services.
76. Small businesses can often provide more personalized customer service than bigger
rivals.
77. Recent evidence suggests that the small business failure rate is significantly higher than
previously reported.
78. Bad luck is the most often reported cause for small business failure.
79. The business opportunities with the greatest growth potential tend to be in the high
technology industries.
80. The easiest businesses to start are those that offer the greatest profit potential.
81. Most business opportunities offer entrepreneurs high levels of security and profits.
82. The easiest businesses to start also have the least growth potential and the greatest
failure rates.
83. While the first job for many people is working for a small business, larger corporations
create most of the permanent new jobs.
84. If you are trying to prevent failure, it is a good idea to go into the business with good
record-keeping techniques.
85. If you go through the exercise of preparing a business plan, only to determine that you
need twice the amount of money to start the business than you have, the SBA and other expert
organizations encourage you to go ahead with your plans because if you understand the market,
you can use the revenues you accrue to make up the shortfall.
86. Small businesses lack the resources to compete directly with big businesses.
87. Because of their superior financial resources and specialized staffs, big corporations can
almost always outperform small businesses.
88. Marina has just completed her business degree. She should focus her job search to only
include large corporations.
89. Renee, a manager at a small manufacturing firm, has offered to help manage a local
branch of the YMCA. Unfortunately, Renee will find that the skills acquired managing a small
business will not be useful in managing a nonprofit organization.
90. Your brother, a family dentist, has opened a new office in your hometown. As a business
student you know that this type of business experiences low failure rates.
91. Samantha wants to start a small business. If her primary goal is fast growth and high
profits, her best chances would be in the manufacturing sector.
92. While Jing wants to start a small business, she has not yet uncovered an opportunity that
would offer her security and the likelihood of high profits. Jing will likely find that one must risk
more in order to attain high profits.
93. The best way to learn about small business is to “bite the bullet” and start your own.
94. Individuals desiring to learn about small business operations are advised to learn from
other entrepreneurs.
95. Many entrepreneurs got the idea for their own business from their experience of working
for others.
96. Since entrepreneurs are starting new businesses, experience gained from working for an
established business isn’t particularly helpful.
97. Offering to manage an established business for a percentage of the profits plus a salary
offers experience to the would-be entrepreneur and free time to the business owner.
98. Entrepreneurs are well advised to avoid starting businesses in the same market in which
they were previously employed.
99. You can negotiate a win-win situation by offering to manage an established small
business. You win from the experience; the owner wins with free time.
100. If you were to begin gathering information on a particular type of business, it is doubtful
that a community college class would benefit your search because the information you would
gain is too generic in nature.
101. There are several ethical considerations when starting a business, but competing against
current and former work relationships is always fair game.
102. Carlos hopes to start his own business. He needs to avoid talking to other small business
owners about his plans because they might steal his ideas.
103. Felicia decided to work for a floral design studio before opening her own shop. This
approach to learning the business is okay, but her time would be put to better use starting her
own business.
104. As an employee of a small business, DeMonte has observed the owner’s desire to retire.
Since DeMonte would like to buy the business, he needs to determine how much the business is
worth. In order to determine a fair price for the business, DeMonte should add up the market
value of all of the firm’s physical assets such as buildings, machinery, equipment, and inventory,
and willingly pay this amount for the business.
105. The two primary concerns of an entrepreneur starting a new business are planning and
record keeping.
106. According to the Small Business Administration, poor management is the cause of the
majority of small business failures.
107. Business plans are necessarily a bit vague since these are prepared prior to the beginning
of business operations.
108. A good business plan describes the nature of the proposed business, the target market,
the competitive advantages, and the qualifications of the owners.
109. Bankers and investors require entrepreneurs to present a well-conceived business plan.