QUESTION Greg recently graduated from college with a degree in marketing. Where is his best opportunity to land his first professional job, and why? What will be an ideal response? ANSWER Answer: Greg’s best chance for getting his first job is with a small company. Small businesses provide the first job for most entrants […]
QUESTION WaterPod Transport is the only company in the world to manufacture and sell personal submarines. The company is owned by a wealthy entrepreneur and has 50 employees and annual sales revenue of $3 million. Would the U.S. Small Business Administration consider WaterPod to be a small business? What will be an ideal response? […]
QUESTION A group of recent college grads is working to come up with “the next big thing.” Considering the definition of an entrepreneurial team, what should these people bring to the table to help ensure the success of their effort? What will be an ideal response? ANSWER Answer: The team members should contribute different […]
QUESTION Why does entrepreneurship tend to increase during economic recessions? What will be an ideal response? ANSWER Answer: People who can’t find jobs in a bad economy can be under pressure to earn income and many become necessity entrepreneurs. Explanation: In 2008, during the Great Recession, entrepreneurial activity increased 6 percent. Needing income in […]
QUESTION What is considered to be a key element in making a small, Web-based business successful? What will be an ideal response? ANSWER Answer: Exploiting a niche by offering a unique product or service not easily available to potential customers can lay solid groundwork for a Web-based business idea. Explanation: Exploiting a niche plays […]
QUESTION Google ads and banner ads are two aspects of the economic infrastructure that enables websites to easily make money. What is the third, and how does it operate? What will be an ideal response? ANSWER Answer: Affiliated marketing is the third method for a website to easily make money. Under this arrangement, other […]
QUESTION Which source of financing has the greatest influence to force a business owner to sell the enterprise to a competitor and collect a high financial return? A) banks B) family C) angel investors D) peer-to-peer lenders E) venture capitalists ANSWER Answer: E Explanation: E) Because venture capitalists get an ownership stake in the […]
QUESTION In the modern U.S. economy, what are bedouins? What will be an ideal response? ANSWER Answer: Bedouins are people who use their laptops and mobile phones to operate small businesses out of cafes, coffeehouses, and other nonfixed locations. Explanation: New computer and telecommunications technology enables “bedouin” businesspeople to be highly mobile; many have […]
QUESTION A small business can fail for many reasons. Which of the following reasons involves financial penalties? A) inadequate management skills B) lack of a business plan C) failure to file appropriate paperwork D) inability to weather aggressive competition E) difficulty retaining good employees ANSWER Answer: C Explanation: C) Small business owners who do […]
QUESTION What is the potential financial benefit to buying an existing business? What will be an ideal response? ANSWER Answer: An existing, well-run enterprise should generate profits quickly. Explanation: Buying an existing enterprise that is already successful should generate profits quickly for the buyer. By comparison, starting a new business may not generate profits […]
