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| 1 | |
All of the following are generally considered reasons that individuals are willing to assume the risks of business ownership except: |
| | A) | the desire to earn a profit. |
| | B) | self-satisfaction and independence. |
| | C) | the challenge of taking calculated risks. |
| | D) | desire to work fewer hours. |
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| 2 | |
Entrepreneurial traits include all of the following except: |
| | A) | self-direction |
| | B) | action-orientation |
| | C) | intolerance of uncertainty |
| | D) | high energy level |
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| 3 | |
Major challenges associated with establishing a home-based business include all of the following except: |
| | A) | micromanaging |
| | B) | separating work and family tasks |
| | C) | abiding by city ordinances |
| | D) | managing business risk |
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| 4 | |
A business plan ________________________. |
| | A) | is easy to research, write, present, and defend |
| | B) | is not much help to see bankers or other investors |
| | C) | is a two or three page management summary of a proposed business venture |
| | D) | forces entrepreneurs to be very specific about products or services they intend to offer |
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| 5 | |
Small business owners can look for help from all of the following except, |
| | A) | an experienced lawyer |
| | B) | a marketing consultant who has large business experience |
| | C) | commercial loan officer from a bank |
| | D) | an insurance agent |
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| 6 | |
André 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) | nearly every owner of small business is interested in selling. |
| | B) | it is almost always cheaper to start a new business than to buy an existing firm. |
| | C) | a fair way to determine the price to pay for an existing business is to determine 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. |
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| 7 | |
In order to prepare a good business plan, an entrepreneur should: |
| | A) | focus on the big picture realizing that the details will take care of themselves. |
| | B) | describe all aspects of the business, including the type of product, the target market, the nature of the competition, and the resources and qualifications of the owner. |
| | C) | be as vague as possible, since trying to be specific can limit creativity and flexibility. |
| | D) | focus on the nature of the business and its target market, but should avoid personal information about the resources and qualifications of the owner since these are confidential items that should not be put in writing. |
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| 8 | |
Pete is an investor who looks for companies with good market potential. He offers to fund them for a stake in the ownership of the business. Pete operates as a(n): |
| | A) | investment analyst. |
| | B) | venture capitalist. |
| | C) | corporate raider. |
| | D) | securities trader. |
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| 9 | |
One of the main reasons why many Canadian small businesses are not involved in world business is: |
| | A) | there is only a limited market for their products. |
| | B) | the government has been against active participation. |
| | C) | many potential exporters do not know how to get started. |
| | D) | Canadian products are looked upon as being inferior. |
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| 10 | |
Small businesses often have advantages in international markets. All of the following are advantages many small businesses can offer except: |
| | A) | a greater expertise in dealing with the paperwork needed to sell goods in international markets. |
| | B) | the ability to begin shipping more quickly. |
| | C) | the opportunity for foreign buyers to deal with individuals rather than corporate bureaucracies. |
| | D) | the ability to provide more personal service. |
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| 11 | |
A major difference between entrepreneurs like Microsoft's Bill Gates and intrapreneurs like 3M's Art Fry is that intrapreneurs do not _________. |
| | A) | take risks |
| | B) | identify business opportunities |
| | C) | use their own resources |
| | D) | know how to capitalize on a business opportunity |
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