BUS 100 Chapter 3 – Flashcards

Which of the following is the main reason most small businesses are in the services​ sector? A. Availability of loans B. Services require fewer resources. C. Fewer regulations are applicable to service businesses. D. Government incentives

Each of the following is a contribution by small​ business, EXCEPT which​ one? A. Increased union membership B. Innovation C. Job creation D. Support of larger corporations

Which of the following is one of the key distinctive competencies of small​ business? A. Recognizing niche products and niche markets B. Creating products at lower prices C. Resurrecting old markets D. Competing at all levels

Which of the following best describes small​ business? A. A small business is one that has no intentions of growing into a large corporation. B. A small business is one that has fewer than 20 employees. C. A small business can be defined as a sole proprietorship. D. A small business is independent and has relatively little influence in its market.

Each of the following is a popular area for small business​ concentration, EXCEPT which​ one? A. Construction B. Services C. Manufacturing D. Retailing

The basic characteristics of an entrepreneur usually include which of the​ following? A. Lack of​ decision-making abilities B. A desire to be their own boss C. Has difficulty working under pressure or stress D. A desire to work a normal work week

Which of the following is the best definition of​ entrepreneurship? A. Public sector employees B. The process of seeking business opportunities under conditions of risk C. Small business ownership D. Independent business management

Each of the following is an example of a goal of the​ entrepreneur, EXCEPT which​ one? A. Financial security B. Reduced workload C. Independence D. Business growth

Which of the following best describes the entrepreneur of​ today? A. An individual works only because of the poor economic conditions. B. ​Today's entrepreneur is seen more often as an​ open-minded leader who relies on​ networks, business​ plans, and consensus. C. An entrepreneur is​ risk-adverse. D. The​ "boss" is​ self-reliant, male, and can make​ quick, firm decisions.

Each of the following is an​ entrepreneur's viewpoint on​ risk, EXCEPT for which​ one? A. Many entrepreneurs feel they have nothing to lose. B. Risk is what makes the venture interesting. C. Entrepreneurs seldom see what they do as risky. D. Entrepreneurs focus on possibilities for failure and balk at gambling everything on a new venture.

When planning to start a new​ business, which of the following is one of the first things that should be​ done? A. Hire staff. B. Find investors. C. Secure sufficient financing. D. Evaluate the competition.

Before embarking on a new business​ venture, which of the follow is most​ important? A. Keep costs as low as possible. B. Do some advertising. C. Make sure there is a demand for the product. D. Contact potential employees.

Which of the following would be the best option for obtaining financing for a new​ business? A. Local bank B. Small Business Administration​ (SBA) C. Personal credit cards D. Family and friends

If a young woman is considering opening her own​ business, which of the following is most important before she proceeds with her​ plan? A. What has been the success rate of other women in similar​ businesses? B. Determine if there is a market for her product or service. C. Determine if there is special financing available for women. D. Determine if there are individuals who would like to work for her.

Each of the following is a basic question that should be answered by a business plan EXCEPT which​ one? A. What are the basic goals and objectives of the​ business? B. How can these strategies be​ implemented? C. Use sustainability. D. What strategies will be used to obtain these goals and​ objectives?

Which of the following represents one of the existing trends for small business​ start-ups? A. Less government regulation B. Less competition C. Numerous​ small-business tax incentives D. Emergence of​ e-commerce

Each of the following is a viable method of starting a small​ business, with the EXCEPTION of which​ one? A. Franchising B. Confiscation C. Starting from scratch D. Acquisition

Each of the following is a potential source for small business​ funding, EXCEPT for which​ one? A. Federal government subsidy loans B. Venture capitalists C. Small Business Investment Companies​ (SBICs) D. SBA financial programs

Each of the following is a reason for small business​ failure, EXCEPT for which​ one? A. Insufficient capital B. Neglect C. Hard work and determination D. Managerial incompetence or inexperience

Each of the following is one reason why small businesses​ succeed, EXCEPT for which​ one? A. Lucky timing B. Market demand C. Managerial competence D. Abundance of capital

When determining how to organize a small service​ business, which of the following factors should be​ considered? A. Budget B. Advantages and disadvantages of each form of organization C. Type of an organization competitors use D. Logo design on the letterhead

Each of the following is true of a sole​ proprietorship, EXCEPT which​ one? A. Tax laws permit owners to treat sales revenues and operating expenses as part of their personal finances. B. A sole proprietorship organization is complicated and costly. C. ​Seventy-four percent of all U.S. businesses are sole proprietorships D. Sole proprietorships are usually for businesses owned by one individual.

Each of the following is a type of​ corporation, EXCEPT for which​ one? A. Publicly held B. Privately held C. Subchapter S D. Closely held

Which of the following terms refers to two companies combining to form a new​ company? A. Merger B. Joint venture C. ​Spin-off D. Acquisition

Which of the following is the most significant disadvantage of​ incorporation? A. Double taxation B. Continuity C. Simplicity and low cost D. Limited liability