1. Justin's favorite part of Introduction to Business class was marketing. As he brainstorms about starting a car detailing business, he recalls that it is important to:
A. open for business and start collecting information about what customers want.
B. find the most affordable location for the business.
C. only agree to serve a high-end market.
D. analyze the market before making the service available.
When seeking financial backing from a venture capitalist, a small business owner should realize that the venture capitalist will:
A. charge an interest rate that is much higher than any other lender.
B. not be interested in the management of the business.
C. expect an ownership stake in the company in exchange for financial backing.
D. demand that the money be repaid within 90 days or less.
Southwest College 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 employee benefits and ways to reduce taxes.
C. venture capitalists an opportunity to identify new entrepreneurs.
D. new businesses low-cost office space with basic business services.
When Krystal Ginger graduates from culinary school she dreams of opening her own Asian fusion restaurant. Her other passion is skiing in Colorado, where she schedules four or five trips each year. As her small business advisor, you believe it necessary to provide her with information that will help her make good business decisions. Which of the following would be helpful for Krystal to know?
A. Restaurants are relatively easy businesses to start, but are labor intensive and also have the greatest failure rate.
B. Restaurants are not the easiest type of business to start, but once you get it going, you will have plenty of time for skiing.
C. Most restaurant owners get rich if they open their own, independent restaurant as opposed to starting a franchised operation.
D. Franchised operations will take less time on the part of the owner than a regular independently owned operation. If she opens a franchise, she will have more time for creativity in the business, and more time for skiing too.
Intrapreneurs make use of __________ to develop and launch new products and generate new profits.
A. their employer's existing human, financial, and physical resources
B. their own personal financial resources
C. government-supplied physical and financial resources
D. old ideas abandoned by entrepreneurs
After several years of working as a regional manager for a nationally known nonprofit, Janelle landed a management position with an innovative small business. If she accepts the job offer, she is likely to find that:
A. due to the significant differences in large and small firms, her previous experience will be of little value in her new position.
B. the principles of management are much the same at large and small firms.
C. nonprofit organizations are motivated by their desire to help people and so financial management is of little concern.
D. planning is more important to a nonprofit organization and less important to a small business so she will need to adjust the time she spends on the planning function.
Entrepreneurs applying for a bank loan should realize that bankers will:
A. expect to receive a share of ownership in the business in exchange for their loan.
B. expect the entrepreneur to provide a business plan.
C. generally make loans only to small businesses in dot.com related industries.
D. offer only short-term financing.
Which of the following suggestions would an experienced business owner offer to help someone who is thinking about starting a business venture?
A. Avoid the temptation of buying an existing firm. Build your own reputation and make your own mistakes.
B. Gain experience by working for a successful businessperson.
C. Postpone consulting with an accountant or lawyer until you can afford their services.
D. Jump in quickly, before the market conditions change and opportunities are lost.
Erin developed a new type of exercise equipment she calls the Tush N' Tone. After unsuccessfully searching for potential investors, she arranged a personal loan and borrowed additional money from her parents. Her willingness to continue believing in her idea and remain enthusiastic shows that Erin is:
A. characteristically self-nurturing.
B. better suited to managing a nonprofit organization.
C. unaware of the risks she was taking.
D. not a true entrepreneur.
Small businesses often have advantages in international markets. One advantage is:
A. a greater expertise in managing the paperwork required to sell goods in international markets.
B. a better understanding of the cultural differences involved.
C. individualized customer service as opposed to impersonal corporate bureaucracies.
D. the ability to obtain financing through the International Monetary Fund.