Chap005 - Chapter 05 - Small Business Entry: Paths to...

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Chapter 05 - Small Business Entry: Paths to Part-time Entrepreneurship Chapter 05 Small Business Entry: Paths to Part-time Entrepreneurship True / False Questions 1. (p. 118) Working for yourself for 40 or fewer hours a week is called part-time self- employment. FALSE Difficulty: Easy 2. (p. 118) Most people start in entrepreneurship via part-time self-employment. TRUE Difficulty: Medium 3. (p. 118) Part-time self-employment represents a very minor portion of all current entrepreneurship. FALSE Difficulty: Medium 4. (p. 118-119) One situation in which to consider part-time business is when you are new to business and need to gain basic experience. TRUE Difficulty: Medium 5-1
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Chapter 05 - Small Business Entry: Paths to Part-time Entrepreneurship 5. (p. 119) If you are new to business and working on your own, estimates suggest that a business plan will take anywhere from 10 to 20 hours. FALSE Difficulty: Hard 5-2
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Chapter 05 - Small Business Entry: Paths to Part-time Entrepreneurship 6. (p. 120) Primary disadvantages of stand retailing are that it requires a significant amount of capital and time investment. FALSE Difficulty: Easy 7. (p. 120) In terms of rent per square foot, carts and kiosks are often among the least expensive locations in the mall. FALSE Difficulty: Medium 8. (p. 120) The key success factor for a stand is having a location where there is enough foot or vehicle traffic to sustain the business. TRUE Difficulty: Medium 9. (p. 121) The advantages of home businesses are the speed and ease of set up and having a highly variable income. FALSE Difficulty: Medium 10. (p. 122) Auctions are a variation of the consignment shop. TRUE Difficulty: Easy 5-3
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Chapter 05 - Small Business Entry: Paths to Part-time Entrepreneurship 11. (p. 123) One advantage of consignment approaches is that they permit full-time sales with only a part-time involvement from you. TRUE Difficulty: Hard 12. (p. 123) The challenges of mail order and catalog sales include the high cost of getting started and the inability to get by without major inventory investment. FALSE Difficulty: Medium 13. (p. 125) A micro inventory is a set of goods or services that consist of only one or a few items. TRUE Difficulty: Easy 14. (p. 125) Advantage of catalog sales is that, like most business-to-business sales, they are instantly successful. FALSE Difficulty: Medium 15. (p. 127) Research indicates that most retail firms typically start out as a hobby. TRUE Difficulty: Medium 5-4
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Chapter 05 - Small Business Entry: Paths to Part-time Entrepreneurship 16. (p. 129) The majority of the part-time businesses are stand retailing. FALSE Difficulty: Easy 17. (p. 129) There are two key groups outside your business with whom you must deal – customers and investors. FALSE
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Chap005 - Chapter 05 - Small Business Entry: Paths to...

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