Business In Action 6Th Edition By Courtland
L. Bovee – Test Bank
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Business In Action 6Th Edition By Courtland L. Bovee
– Test Bank
Sample Test
Business in Action, 6e (Bovee/Thill)
Chapter 6 Entrepreneurship and Small Business Ownership
1) Among all firms that apply for U.S. patents on new inventions, small
businesses receive 13 times more patents per employee than larger firms.
Answer: TRUE
Explanation: Among all firms that apply for U.S. patents on new inventions,
small businesses receive 13 times more patents per employee than larger
firms.
,Page Ref: 117
Difficulty: Easy
Chapter LO: 1
Course LO: Describe the role of small businesses in the economy
Classification: Concept
2) A 12-empoyee executive recruiting firm making $750,000 per year would be
a small business.
Answer: TRUE
Explanation: Small business refers to a company that is independently owned
and operated, is not dominant in its field, and employs fewer than 500 people
(although this number varies by industry).
Page Ref: 117
Difficulty: Moderate
Chapter LO: 1
Course LO: Describe the role of small businesses in the economy
Classification: Concept
3) Lifestyle businesses are small only because they are new and have
ambitious plans to grow.
Answer: FALSE
Explanation: Small businesses such as a self-employed consultant, a corner
florist, or a small e-commerce venture are sometimes called lifestyle
businesses because they are built around the personal and financial needs of
an individual or a family. In contrast, other firms are small simply because they
are young, but they have ambitious plans to grow.
Page Ref: 118
Difficulty: Easy
Chapter LO: 1
Course LO: Describe the role of small businesses in the economy
Classification: Concept
,4) Business start-ups decline when the economy sours.
Answer: FALSE
Explanation: Business start-ups often soar when the economy sours. During
hard times, many companies downsize or lay off talented employees, who
then have little to lose by pursuing self-employment.
Page Ref: 120
Difficulty: Easy
Chapter LO: 1
Course LO: Describe the role of small businesses in the economy
Classification: Concept
5) Outsourcing reduces opportunities for small businesses and entrepreneurs.
Answer: FALSE
Explanation: Outsourcing, the practice of engaging outside firms to handle
either individual projects or entire business functions, creates numerous
opportunities for small businesses and entrepreneurs.
Page Ref: 120
Difficulty: Moderate
Chapter LO: 1
Course LO: Describe the role of small businesses in the economy
Classification: Concept
6) The practice of engaging outside firms to handle either individual projects or
entire business functions is called downsizing.
Answer: FALSE
Explanation: Outsourcing is the practice of engaging outside firms to handle
either individual projects or entire business functions.
Page Ref: 120
Difficulty: Easy
Chapter LO: 1
, Course LO: Describe the role of small businesses in the economy
Classification: Concept
7) Intrapreneurship is a term coined by business consultant Gifford Pinchot to
designate entrepreneurial efforts within a larger organization.
Answer: TRUE
Explanation: Intrapreneurship is a term coined by business consultant Gifford
Pinchot to designate entrepreneurial efforts within a larger organization.
Page Ref: 121
Difficulty: Easy
Chapter LO: 2
Course LO: Explain the entrepreneurship process
Classification: Concept
8) In large organizations, mechanisms put in place to prevent mistakes can
also hamper innovative thinking by restricting people to tried-and-true
methods.
Answer: TRUE
Explanation: In large organizations, mechanisms put in place to prevent
mistakes can also hamper innovative thinking by restricting people to tried-
and-true methods.
Page Ref: 122
Difficulty: Easy
Chapter LO: 2
Course LO: Explain the entrepreneurship process
Classification: Concept
9) Compared to starting a new business, buying an existing business can
involve more work and more risk.
L. Bovee – Test Bank
To purchase this Complete Test Bank with Answers Click the link
Below
https://quizsolutions.site/product/business-in-action-6th-edition-by-courtland-l-bovee-test-bank/
If face any problem or Further information contact us At
INSTANT DOWNLOAD WITH ANSWERS
Business In Action 6Th Edition By Courtland L. Bovee
– Test Bank
Sample Test
Business in Action, 6e (Bovee/Thill)
Chapter 6 Entrepreneurship and Small Business Ownership
1) Among all firms that apply for U.S. patents on new inventions, small
businesses receive 13 times more patents per employee than larger firms.
Answer: TRUE
Explanation: Among all firms that apply for U.S. patents on new inventions,
small businesses receive 13 times more patents per employee than larger
firms.
,Page Ref: 117
Difficulty: Easy
Chapter LO: 1
Course LO: Describe the role of small businesses in the economy
Classification: Concept
2) A 12-empoyee executive recruiting firm making $750,000 per year would be
a small business.
Answer: TRUE
Explanation: Small business refers to a company that is independently owned
and operated, is not dominant in its field, and employs fewer than 500 people
(although this number varies by industry).
Page Ref: 117
Difficulty: Moderate
Chapter LO: 1
Course LO: Describe the role of small businesses in the economy
Classification: Concept
3) Lifestyle businesses are small only because they are new and have
ambitious plans to grow.
Answer: FALSE
Explanation: Small businesses such as a self-employed consultant, a corner
florist, or a small e-commerce venture are sometimes called lifestyle
businesses because they are built around the personal and financial needs of
an individual or a family. In contrast, other firms are small simply because they
are young, but they have ambitious plans to grow.
Page Ref: 118
Difficulty: Easy
Chapter LO: 1
Course LO: Describe the role of small businesses in the economy
Classification: Concept
,4) Business start-ups decline when the economy sours.
Answer: FALSE
Explanation: Business start-ups often soar when the economy sours. During
hard times, many companies downsize or lay off talented employees, who
then have little to lose by pursuing self-employment.
Page Ref: 120
Difficulty: Easy
Chapter LO: 1
Course LO: Describe the role of small businesses in the economy
Classification: Concept
5) Outsourcing reduces opportunities for small businesses and entrepreneurs.
Answer: FALSE
Explanation: Outsourcing, the practice of engaging outside firms to handle
either individual projects or entire business functions, creates numerous
opportunities for small businesses and entrepreneurs.
Page Ref: 120
Difficulty: Moderate
Chapter LO: 1
Course LO: Describe the role of small businesses in the economy
Classification: Concept
6) The practice of engaging outside firms to handle either individual projects or
entire business functions is called downsizing.
Answer: FALSE
Explanation: Outsourcing is the practice of engaging outside firms to handle
either individual projects or entire business functions.
Page Ref: 120
Difficulty: Easy
Chapter LO: 1
, Course LO: Describe the role of small businesses in the economy
Classification: Concept
7) Intrapreneurship is a term coined by business consultant Gifford Pinchot to
designate entrepreneurial efforts within a larger organization.
Answer: TRUE
Explanation: Intrapreneurship is a term coined by business consultant Gifford
Pinchot to designate entrepreneurial efforts within a larger organization.
Page Ref: 121
Difficulty: Easy
Chapter LO: 2
Course LO: Explain the entrepreneurship process
Classification: Concept
8) In large organizations, mechanisms put in place to prevent mistakes can
also hamper innovative thinking by restricting people to tried-and-true
methods.
Answer: TRUE
Explanation: In large organizations, mechanisms put in place to prevent
mistakes can also hamper innovative thinking by restricting people to tried-
and-true methods.
Page Ref: 122
Difficulty: Easy
Chapter LO: 2
Course LO: Explain the entrepreneurship process
Classification: Concept
9) Compared to starting a new business, buying an existing business can
involve more work and more risk.
