Test Bank For Practical Business Math Procedures, 14th Edition All Chapters - 9781264098385.pdf

Business A Practical Introduction By Williamsk k k k k k




– Test Bank k k




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Business A Practical Introduction By Williams –
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Test Bank
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Sample Test k




Business: A Practical Introduction (Williams/Sawyer/Berston)
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Chapterk6k ThekEntrepreneurialkSprit


1) The primary motive of an enterprise is to make a profit. A
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nswer: TRUE k



Explanation: The mission of any business is to generate wealth, or earn a profit.
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Page Ref: 164k k



Learning Outcome: Describe the role of small businesses in the economy Diffic
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ulty: Easy
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,Objective: 6.1 Do I have what it takes to be a small-
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business entrepreneur? Classification: Concept
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2) A skunkworks is a group of people who split off from a company to use its pr
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oprietary technology and trade secrets for starting their own enterprise.
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Answer: FALSE k



Explanation: A skunkworks is a team that is separated from the normal operatio
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n of an organization and asked to produce a new, innovative project for that orga
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nization.
Page Ref: 166 Difficulty
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: Easy
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Objective: 6.1 Do I have what it takes to be a small-
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business entrepreneur? Classification: Concept
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3) More entrepreneurs are driven by opportunity than necessity.
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Answer: TRUE k



Explanation: Most entrepreneurs fall under the category of opportunity entrepre
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neurs; they are ambitious and start their own businesses in voluntary pursuit of o
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pportunity.
Page Ref: 166 Difficulty
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: Easy
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Objective: 6.1 Do I have what it takes to be a small-
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business entrepreneur? Classification: Concept
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4) A small business that requires little investment to become operational is c
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alled an ultralight startup.
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Answer: TRUE k



Explanation: Many ultralights are Web- k k k k



based businesses. Page Ref: 171
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Difficulty: Easy k

,Objective: 6.2 How important is small business, and what newer types might inte
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rest me?
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Classification: Concept k




5) After working hard and facing enormous risks, many entrepreneurs sell t
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heir business to realize a substantial profit.
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Answer: TRUE k



Explanation: Some people develop businesses with the intention of creating a va
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luable enterprise that can be sold for a healthy return on their investment.
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Creating wealth is a primary driver for business. Page
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Ref: 173k



Difficulty: Easy k



Objective: 6.2 How important is small business, and what newer types might inte
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rest me?
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Classification: Concept k



6) A service corps consists of individuals and companies in a specific business or
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industry organized to promote common interests.
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Answer: FALSE k



Explanation: The term for this type of group is a trade association. Page
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Ref: 176k



Difficulty: Easy k



Objective: 6.3 If I wanted to start a company, how should I go about it? Classificat
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ion: Concept
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7) A business model defines the need a proposed business will fill as well as its
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operations, components, functions, and expected revenues and expenses.
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Answer: TRUE k



Explanation: Clarifying the business model is an important step before writing a
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business plan for a new enterprise.
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Page Ref: 177
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, Learning Outcome: Explain the entrepreneurship process Diffic
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ulty: Easy k



Objective: 6.3 If I wanted to start a company, how should I go about it? Classificat
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ion: Concept
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8) The Small Business Administration offers a variety of direct loans to help n
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ew businesses get started.
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Answer: FALSE k



Explanation: The SBA does not make direct loans; it guarantees business loans
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made by banks. k k



Page Ref: 181 Difficulty
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: Easy
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Objective: 6.4 What are various ways of financing my new business? Classificati
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on: Concept
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9) A venture capitalist receives an ownership stake in a new business in return fo
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r its investment.
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Answer: TRUE k



Explanation: Venture capitalists are generally companies, not individuals. They
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provide little financing for small businesses, focusing on larger enterprises in se
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veral industry sectors.
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Page Ref: 182 Difficulty
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: Easy
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Objective: 6.4 What are various ways of financing my new business? Classificati
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on: Concept
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10) Tax credits are a key tool that governments use to encourage business d
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evelopment in enterprise zones. k k k



Answer: TRUE k