QUESTION Small businesses can fail due to problems with economies of scale. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Economies of scale refer to savings realized from buying materials or manufacturing products in large quantities. Small businesses often don’t have the resources or market to benefit from this dynamic.
QUESTION Which of the following would be LEAST interested in building a high-growth business? A) entrepreneurial team B) necessity entrepreneur C) classic entrepreneur D) opportunity entrepreneur E) micropreneur ANSWER Answer: E Explanation: E) A micropreneur usually has a small operation, often a home-based business, as a means to earn a living and have a […]
QUESTION The incoming and outgoing of money in a business enterprise is called total balance of payments. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: Incoming and outgoing of money in a business is called cash flow.
QUESTION Business always involves some level of risk. Which of the following is subject to the greatest individual risk? A) micropreneur B) classic entrepreneur C) skunkworks member D) entrepreneurial team member E) intrapreneur ANSWER Answer: B Explanation: B) A classic entrepreneur is an individual who starts a business to pursue an opportunity. Micropreneurs operate […]
QUESTION Which of the following terms is most often associated with home-based businesses? A) classic entrepreneur B) micropreneur C) necessity entrepreneur D) opportunity entrepreneur E) intrapreneur ANSWER Answer: B Explanation: B) Micropreneurs start businesses that remain small, let them do the kind of work they want to do, and offer a balanced lifestyle. Micropreneur […]
QUESTION Which of the following would NOT be considered a small business by the U.S. government? A) a beauty shop owned by two women, with monthly revenue of $23,000 B) a sandwich shop owned by a corporation, with monthly revenue of $34,000 C) a food truck owned by a college student, with monthly revenue of […]
QUESTION What is the primary motive of an enterprise? A) to sell products and services B) to make a profit C) to generate revenue D) to create jobs E) to enhance the community ANSWER Answer: B Explanation: B) An enterprise is defined as an endeavor in which the primary motive is to make a […]
QUESTION A skunkworks is a group of people who split off from a company to use its proprietary technology and trade secrets for starting their own enterprise. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: A skunkworks is a team that is separated from the normal operation of an organization […]
QUESTION A service corps consists of individuals and companies in a specific business or industry organized to promote common interests. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: The term for this type of group is a trade association.
QUESTION Cyclane’s chief operating officer thinks that the company should begin international operations by looking to acquire an existing company in another country, arguing that this will save money. Which of the following, if true, strengthens the COO’s argument? A) Cyclane will have to pay a premium above the company’s market price in order to […]
