CH 7 TEST
8 Pages

CH 7 TEST

Course Number: BA 101, Spring 2010

College/University: Western Oregon University

Word Count: 1971

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Startedon Sunday, November 15, 2009, 08:56 PM Completedon Sunday, November 15, 2009, 09:06 PM Timetaken 10 mins 13 secs 27/30 Marks 45 out of a maximum of 50 (90%) Grade Question 1 Marks: 1 In a business plan, a commercial lender would expect to find Choose one answer. a. a description of the business, the appendix, and list of references. b. a description of the business, competitive analysis, operating...

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November Startedon Sunday, 15, 2009, 08:56 PM Completedon Sunday, November 15, 2009, 09:06 PM Timetaken 10 mins 13 secs 27/30 Marks 45 out of a maximum of 50 (90%) Grade Question 1 Marks: 1 In a business plan, a commercial lender would expect to find Choose one Register to View Answera description of the business, the appendix, and list of references. b. a description of the business, competitive analysis, operating procedures, and financial data. c. a description of product offered, description of relationship with suppliers, operating procedures, and description of needs in the community. d. a community market survey, description of the business, and operating procedures. Correct Marks for this submission: 1/1. Question 2 Marks: 1 Entrepreneurs with a strong internal locus of control tend to Choose one Register to View Answerbe unwilling to accept personal responsibility for their actions. b. have trouble learning from past mistakes. c. put too much faith in the ability of others within their business. d. feel that the success or failure of their companies are largely the result of their own actions and decisions. Correct Marks for this submission: 1/1. Question 3 Marks: 1 A venture capitalist firm is most likely to be interested in investing in a Choose one Register to View Answerbig, well-established corporation that has fallen on hard times. b. large, successful corporation that has several divisions that can be spun off to earn a quick profit. c. small new company with the potential for rapid growth. d. small new company in a mature sector of the economy with the potential for slow but steady long-term growth. Correct Marks for this submission: 1/1. Question 4 Marks: 1 Which of the following individuals is LEAST likely to become an entrepreneur? Choose one Register to View AnswerA person with vision and a high-energy level. b. A person who sees the world in shades of gray and seeks to find ways to use uncertainty to his or her advantage. c. A confident person with an internal locus of control. d. A person who values a stable, predictable income. Incorrect Marks for this submission: 0/1. Question 5 Marks: 1 Entrepreneurs must understand that no conventional lender, whether private or public, will Choose one Register to View Answerloan 100 percent of the start-up funding. b. give money to any business. c. work with venture capitalists. d. know angel investors. Correct Marks for this submission: 1/1. Question 6 Marks: 1 Burger King, McDonalds, Wendys, and Hardees are all examples of Choose one Register to View Answerbusiness franchising. b. limited liability companies. c. small business. d. health issues. Correct Marks for this submission: 1/1. Question 7 Marks: 1 Which organization would be most likely to help you develop a business plan? Choose one Register to View AnswerSmall Business Administration. b. your local small business banker. c. the angel investor network. d. venture capitalists in your area. Correct Marks for this submission: 1/1. Question 8 Marks: 1 For individuals starting a small business, writing a business plan is Choose one Register to View Answermore work than it is worth. always necessary, but it is essential if the company needs to obtain external financing. c. the first and most critical step toward getting the company up and running. Small businesses that arent guided by a plan are almost never successful. d. a simple process that usually takes no more than a week or two to complete. b. not Correct Marks for this submission: 1/1. Question 9 Marks: 1 Technological developments over the past two decades, such as the rise of the Internet and e-mail, have Choose one Register to View Answerreduced the role of entrepreneurship in the U.S. economy. b. given small business owners more flexibility in how they manage their schedules. c. made it harder for small businesses to compete successfully against large corporations. d. given small business owners a greater ability to compete with big companies but have reduced the flexibility they have in managing their businesses. Correct Marks for this submission: 1/1. Question 10 Marks: 1 When it comes to learning more about starting and running a small business, Choose one Register to View Answerreliable sources of information are disappointingly scarce. b. it is a good idea to avoid advice from business owners who have recently failed. c. the best approach is to get hands-on experience by working at least seven years for someone else in the field before starting your own business. d. the Small Business Administration, industry associations, blogs, and Websites are only a few of the many sources that are available. Correct Marks for this submission: 1/1. Question 11 Marks: 1 Robin Shannon is an entrepreneur. As such, she is likely to Choose one Register to View Answerbe very superstitious. b. view uncertainty as something that can be turned to her advantage. c. have a hard time coping with failure. d. look objectively at her own abilities and shortcomings. Correct Marks for this submission: 1/1. Question 12 Marks: 1 Entrepreneurs tend to be tolerant of Choose one Register to View Answerpoverty: they are usually more interested in changing the world than in making money. b. incompetence in others: they tend to believe that the only way to get things done is to do it themselves. c. uncertainty: they view business uncertainty as something they can turn to their advantage. d. delays in their ability to get their companies up and running: they have enormous patience and unlimited faith that they will ultimately prevail. Correct Marks for this submission: 1/1. Question 13 Marks: 1 Which of the following nations is likely to have the lowest percentage of necessity entrepreneurs? Choose one Register to View AnswerUganda. b. Peru. c. the United States. d. Jordan. Correct Marks for this submission: 1/1. Question 14 Marks: 1 Finland, Italy, Sweden, and several other members of the European Union have low entrepreneurship rates. The most likely reason for this result is that these nations Choose one Register to View Answerdo not have well-developed markets. b. have restrictions that prohibit private ownership of businesses in most sectors of the economy. c. dont have well developed property rights, making it much riskier to form new businesses. d. have liberal unemployment benefits and provide employees with a high level of employment protection. Correct Marks for this submission: 1/1. Question 1 Which 15 Marks: of the following is an actual competitive disadvantage for many small businesses? Choose one Register to View Answerhigh overhead costs. b. lack of business knowledge and expertise by the owners. c. inability to take advantage of advances in technology. d. inability to compete effectively in global markets. Correct Marks for this submission: 1/1. Question 16 Marks: 1 The primary outside users of business plans are Choose one Register to View Answersmall business b. customers. administrators. c. investors and lenders. d. vendors and suppliers. Correct Marks for this submission: 1/1. Question 17 Marks: 1 Which of the following is NOT a significant drawback of getting into business by entering into a franchise arrangement? Choose one Register to View AnswerA franchisee has less independence and flexibility than the owner of a business that is started from scratch. b. Franchising is generally considered to be the riskiest option for starting a business. c. The initial cost of most well-known franchises can be quite expensive. d. The owner must pay an on-going royalty to the franchiser. Correct Marks for this submission: 1/1. Question 18 Marks: 1 In low-income countries, a higher percentage of entrepreneurs are considered Choose one Register to View Answernecessity entrepreneurs. b. angel investors. c. venture capitalists. d. commercial lenders. Correct Marks for this submission: 1/1. Question 19 Marks: 1 When entrepreneurs fail, they tend to Choose one Register to View Answerview the failure b. quickly as an outcome that was caused by forces beyond their control. dismiss the failure and soon convince themselves that it didnt really occur. c. view it as an opportunity to learn from their mistakes. d. take it very personally, so it has a devastating effect on their self-confidence and self-esteem. Correct Marks for this submission: 1/1. Question 20 Marks: 1 Steve Jobs, Ray Kroc, and Walt Disney each Choose one Register to View Answerexperienced success at the very beginning of their careers. b. became entrepreneurs more out of necessity than out of a real desire to start a business. c. started their own businesses with great personal wealth. d. experienced failures Correct Marks for this submission: 1/1. Question 21 Marks: 1 early in their careers. Overhead costs for small businesses Choose one Register to View Answertend to be much higher than they are for large businesses when expressed as a percentage of total expenses, which is one of the reasons the failure rate of small businesses is so high. b. are about the same as they are for big companies when measured as a percentage of total expenses. c. are often lower than they are for big companies, giving small businesses a competitive opportunity. d. primarily arise because small businesses must hire so many outside consultants. Incorrect Marks for this submission: 0/1. Question 22 Marks: 1 The vast majority of new firms are funded with Choose one Register to View Answerfamily money. b. commercial loans. c. the owners personal savings. d. equity stakeholders. Correct Marks for this submission: 1/1. Question 23 Marks: 1 Mary Kate wants to start a business. She takes a personality test at school and discovers she possesses a trait that may reduce the likelihood she will succeed. Which of the following is that trait? Choose one Register to View AnswerVision. b. Internal locus of control. c. External locus of control. d. Tolerance of failure. Incorrect Marks for this submission: 0/1. Question 24 Marks: 1 Sources of start-up funding include: Choose one Register to View Answerpersonal savings. b. credit cards. c. family and friends. d. all of the sources in Correct Marks for this submission: 1/1. Question 25 Marks: 1 this list. Small business start-ups are likely to find that getting commercial loans is Choose one Register to View Answerhard to do, because commercial lenders are reluctant to make loans to firms that dont have an established record of successful performance. b. one of the easiest and most flexible sources of financing, because local bankers are usually eager to establish relationships with new companies. c. is fairly easy, but usually entails much higher financing costs than other sources. d. the best way to obtain 100 percent of the financing they need, but only if they give the lender an ownership stake in the company. Correct Marks for this submission: 1/1. Question 26 Marks: 1 A possible drawback when buying an existing business is that Choose one Register to View Answerit creates unrealistic expectations. b. its significantly riskier than starting from scratch. c. there are often significant legal hassles involved in transferring ownership. d. you may inherit the mistakes Correct Marks for this submission: 1/1. Question 27 Marks: 1 made by the previous owner. Small Business Development Center Choose one Register to View Answerhelp small businesses develop their business plan and apply for loans. b. provide interest-free financing for small businesses. c. provide the Small Business Administration with its major source of financing. d. perform all of the functions in this list. Correct Marks for this submission: 1/1. Question 28 Marks: 1 When a large company like Ford Motor Company or Citigroup downsizes, some of the middle-aged and older workers who are laid off find it tough to find another job in corporate America. Such workers often decide to start their own businesses. They are best described as Choose one Register to View Answerwelfare recipients. b. necessity entrepreneurs. c. Intrapreneurs. d. micropreneurs. Correct Marks for this submission: 1/1. Question 29 Marks: 1 A drawback of becoming a small business owner by buying a franchise it is that Choose one Register to View Answerthere is less opportunity for creativity. b. if the national chain suffers, so does the franchisee. c. the initial purchase price can be rather steep. d. all of the items in this list are drawbacks to entering into a franchise agreement. Correct Marks for this submission: 1/1. Question 30 Marks: 1 Mary Kate is a successful entrepreneur. As such, she is likely to Choose one Register to View Answerbe very laid back in her approach to running a business. b. believe that most of her success is due to luck and the hard work of others. c. have very little tolerance for uncertainty. d. have a great deal of faith in her business ideas, even when others express doubts. Correct Marks for this submission: 1/1.

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