Chap020 - Chapter 20 Achieving Success in the Small Business Chapter 20 Achieving Success in the Small Business True False Questions 1(p 656 All

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Chapter 20 - Achieving Success in the Small Business Chapter 20 Achieving Success in the Small Business True / False Questions 1. (p. 656) All models for the life cycle of the small business firm have multiple stages. TRUE Difficulty: Easy 2. (p. 656) Managerial role needs to be focused during the emergence and existence stage of the small business life cycle. FALSE Difficulty: Medium 3. (p. 656) In 2002, more than 90 percent of the general population expressed an interest in owning their own firm. FALSE Difficulty: Hard 4. (p. 656) Survival is the second riskiest period after emergence. TRUE Difficulty: Medium 5. (p. 656) For most small businesses existence will follow the success stage. FALSE Difficulty: Medium 20-1
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Chapter 20 - Achieving Success in the Small Business 6. (p. 657) Recency, frequency, urgency and potency are four key recommendations for staving off customer complacency. FALSE Difficulty: Hard 7. (p. 659) Most small businesses never go through the takeoff stage. TRUE Difficulty: Medium 8. (p. 659) High-growth ventures aim to achieve growth rates of 5-10 percent a year, with sales of $100,000. FALSE Difficulty: Hard 9. (p. 659) High-growth ventures represent about 5 percent of all businesses. TRUE Difficulty: Hard 10. (p. 659) Lifestyle firms are the smallest full-time businesses. FALSE Difficulty: Medium 11. (p. 661) For the owners, a central goal of a harvest is to get the maximum value they can for their business. TRUE Difficulty: Easy 20-2
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Chapter 20 - Achieving Success in the Small Business 12. (p. 661) When one firm absorbs another, it is called a merger. FALSE Difficulty: Medium 13. (p. 661) Successions and business sales generally occur only among the largest small businesses. TRUE Difficulty: Medium 14. (p. 661) In the hierarchy of business outcomes, the worst possible outcome is leaving the firm with no debt. FALSE Difficulty: Medium 15. (p. 663) Terminations are more likely for young firms, who are four years old or less. TRUE Difficulty: Medium 16. (p. 663) The single most typical way businesses close down is by a walk away. TRUE Difficulty: Medium 20-3
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17. (p. 664) People who open multiple businesses though out their career are called unsatisfied entrepreneurs. FALSE Difficulty: Medium 18. (p. 665) Businesses starting with no start-up capital and those starting with more than $50,000 are among those most likely to survive long-term. TRUE Difficulty: Hard 19. (p. 666) For start-ups, the short-term measure of success is profits and the long-term measure of success is survival. FALSE Difficulty: Hard 20. (p. 670) In every small business effort, there is always an element of risk. TRUE
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This note was uploaded on 11/21/2009 for the course MNGT 422X taught by Professor Godsey during the Spring '09 term at UNL.

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Chap020 - Chapter 20 Achieving Success in the Small Business Chapter 20 Achieving Success in the Small Business True False Questions 1(p 656 All

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