Answered: 1. _____ nurture young firms and…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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1. _____ nurture young firms and help them to survive and grow during the startup period when they are most vulnerable. a. Successful graduates b. Business incubators c. International trade organizations d. Conglomerates 2. Which of the following best describes one of the contributions of small businesses? a. They are sources of new ideas or services that larger businesses may be unable to provide. b. They provide large capital gains to the owners. c. Their products and services are sold at prices that are lower than large businesses' prices. d. They provide economies of scale that large businesses cannot match. 3. Most creative entrepreneurs are very good managers. a. True b. False 4. 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. 5. Which of the following does a business incubator do to help small business owners succeed? a. Find out the competition and make deals for cooperation b. Provide management assistance and shared office services c. Hire employees and train them d. Keep their financial records up to date 6. _____ is a voluntary decision to terminate a business. a. Foreclosure b. Formal Failure c. Discontinuance d. Bankruptcy 7. A new small business owner's primary motive is usually _____. a. independence, that is, freedom from interference or control by superiors b. the need to obtain a second income for balancing the losses of other ventures c. the need to provide a niche product d. to seek security, place, power, prestige, high income, and benefits 8. John opened All-for-Shop, a small retail outlet, in his neighborhood. He could not sustain it for more than a year because of huge losses and chose to shut it down. Fortunately, he did not have any creditors. Which of the following does the situation describe? a. Formal Failure b. Foreclosure c. Bankruptcy d. Personal Failure 9. Reengineering is the fundamental redesign of a business, often resulting in reduction in size and markets. a. True b. False 10. A _____ is any business that is independently owned and operated and is not dominant in its field of operation. a. monopolistic organization b. public enterprise c. close corporation d. small business 11. Which of the following is true about the final stage of the typical growth pattern that small businesses tend to follow? a. Owners manage the business and do all the work. b. Owners manage their companies but hire employees to help with routine and/or management activities. c. Owners hire managers to run the firms. d. Owners outsource much of the supervisory work. 12. Which of the following features must a business have to be classified as small? a. Management is independent, and the area of operation is primarily local. b. It is dominant in its field of operation, and it employs 100 -200 people. c. Ownership is held by a large group of people, and the market is primarily local. d. Capital is provided by a federal institution, and the objectives are non-profitability and service to the government. 13. Which of the following is a problem faced by small businesses today? a. Lack of advertising b. Lack of risk takers c. No training at colleges and universities d. Unexpected growth and financing issues

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