Chapter 1

Which of the following is a major reason for the increased interest in small business?

• There is no major fear of being impacted by recession.

• There is a growing trend toward self-employment.

• The rate of profit achieved by small businesses is higher than that of big corporations.

• There are very few government regulations and paperwork for small businesses.

Which of the following statements is true about the impact of small businesses and entrepreneurship on educational institutions?

• Entrepreneurship and small business management are accepted as academically respected disciplines by many high schools, colleges, and universities.

• Community colleges are reluctant to offer courses for small business owners.

• Today more students think working for big corporations is a safer haven than self-employment.

• Educational institutions have discovered that by teaching entrepreneurship they will be able to put a restriction on free enterprise.

An entrepreneurial venture is characterized by:

• A) innovative strategic practices and/or products.

• B) independent ownership and operation and no desire for dominance in its field.

• C) no scope of growing large, and the owners may not want it to.

• D) normal sales, profits, and growth as opposed to rapid growth and a quick sellout.

Which of the following is characteristic of a small business owner?

• Is innovative and focuses primarily on profitability and growth

• Perceives the business as being an extension of his or her personality

• Starts and manages a business for many reasons other than furthering personal goals

• Prefers a less relaxed and more aggressive approach to running the business

Smaller firms tend to:

• minimize innovation and flexibility.

• not provide a comprehensive learning experience to their employees.

• keep larger firms competitive.

• provide reduced employee job satisfaction.

Which of the following best describes one of the contributions of small businesses?

• They are sources of new ideas or services that larger businesses may be unable to provide.

• They provide large capital gains to the owners.

• Their products and services are sold at prices that are lower than large businesses' prices.

• They provide economies of scale that large businesses cannot match.

Which of the following statements is true about small businesses?

• They get easy financing that leads to too many choices for funding.

• Small businesses provide low employee job satisfaction owing to a lower volume of transactions.

• They are not subject to burdensome government regulations and paperwork.

• Inadequate management in small businesses creates problems for small business owners and entrepreneurs.

Which of the following is a problem faced by small businesses today?

• Lack of advertising

• Lack of risk takers

• No training at colleges and universities

• Unexpected growth and financing issues

Which of the following is a reason for the drastic changes in small business management trends?

• Accounting departments becoming independent of computer support

• Diverse shift away from people-related activities

• Improvements in communications and computer technology

• Excess supply of managerial talent

(a)   is the fundamental redesign of a business, often resulting in reduction in size and markets.

• Reinvention

• Incremental change

• Reengineering

• Acculturation