,TESTBANK for Small Business Creating Value
Through Entrepreneurship, 1st Edition by
Vishal K. Gupta
Hello all ,
We have all what you need with best price
Our email :
Our website :
testbanks-store.com
, Test Bank
Chapter 1- Understanding Small Business
True/False
1. Small businesses play an important role in the economic growth of any country
Answer: True
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
2. Small businesses in U.S. employ about half of America’s private-sector employees
Answer: True
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
3. Most small businesses in U.S. are single-person firms with no employees
Answer: True
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
4. A small business is defined as one that is independently owned, operated, and is
nationally dominated in its field of operation; and has less than 150 employees
Answer: False
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
5. To classify a firm as a small business, the SBA counts employment at the firm level
Answer: False
Response: See 1.1
Level: Medium
Learning Objective: Discuss the importance of small business to the economy
6. According to the Small Business Administration, a small business is the one that has less
than 50 employees
Answer: False
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
1
, Test Bank
7. Small businesses file more patents per employees than large businesses
Answer: True
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
8. The minimum legal age requirement for starting a new business in U.S is 18 years
Answer: False
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
9. Small firms and large corporations have a symbiotic relationship
Answer: True
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
10. The Paycheck Protection Program (PPP) is a loan designed for large corporations to
provide compensation to their executives
Answer: False
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
11. Businesses recognized as large are eligible for SBA’s loan programs
Answer: False
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
12. According to the text, entrepreneurship involves identifying and pursuing new
opportunities to introduce novel goods and services to the market
Answer: True
Response: See 1.2
Level: Medium
Learning Objective: Define small business management and explain the role of
entrepreneurship in managing a small business
2
, Test Bank
13. Small businesses and entrepreneurship are complementary
Answer: True
Response: See 1.2
Level: Medium
Learning Objective: Define small business management and explain the role of
entrepreneurship in managing a small business
14. Owners of lifestyle businesses do not need to improve products and operations
Answer: False
Response: See 1.2
Level: Medium
Learning Objective: Define small business management and explain the role of
entrepreneurship in managing a small business
15. The large firms that stop growing at some point are known as whales
Answer: False
Response: See 1.2
Level: Easy
Learning Objective: Define small business management and explain the role of
entrepreneurship in managing a small business
16. The term ‘gazelle’ is used for those entrepreneurial small firms that have high rates of
growth
Answer: True
Response: See 1.2
Level: Easy
Learning Objective: Define small business management and explain the role of
entrepreneurship in managing a small business
17. A credit policy that is too lenient can cause collection and cash-flow problems later for
small businesses
Answer: True
Response: See 1.2
Level: Easy
Learning Objective: Define small business management and explain the role of
entrepreneurship in managing a small business
18. Entrepreneurship is a born trait and cannot be learned
Answer: False
Response: See 1.3
3
, Test Bank
Level: Easy
Learning Objective: Recognize the common myths and various benefits about small
business entrepreneurship
19. One should start a business ONLY when the demand for its goods or services is high
Answer: False
Response: See 1.3
Level: Easy
Learning Objective: Recognize the common myths and various benefits about small
business entrepreneurship
20. A growth mindset stipulates that one’s skills and qualities are mutable
Answer: False
Response: See 1.3
Level: Easy
Learning Objective: Recognize the common myths and various benefits about small
business entrepreneurship
21. One of the advantages of running your own business is that you get to do what you love
to do
Answer: True
Response: See 1.3
Level: Easy
Learning Objective: Recognize the common myths and various benefits about small
business entrepreneurship
22. US ranks higher than Canada on global indicators of commercial entrepreneurship
Answer: False
Response: See 1.4
Level: Easy
Learning Objective: Identify Various Forms of Entrepreneurship
23. In U.S., the desire to become a social entrepreneur is strongest for people between the age
of 25 and 45
Answer: True
Response: See 1.4
Level: Easy
Learning Objective: Identify Various Forms of Entrepreneurship
24. Facebook and Insomnia Cookies are examples of businesses started by student
entrepreneurs
4
, Test Bank
Answer: True
Response: See 1.4
Level: Easy
Learning Objective: Identify Various Forms of Entrepreneurship
25. Silver entrepreneurship is about students running their own business
Answer: False
Response: See 1.4
Level: Medium
Learning Objective: Identify Various Forms of Entrepreneurship
Multiple Choice Questions
1. In U.S., small businesses comprise more than _____percent of all employers
A. 40
B. 99
C. 50
D. 30
Answer: B
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
2. Small businesses employ _____of all private sector employees
A. Half
B. One-third
C. Two-third
D. One-fourth
Answer: A
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
3. A small business is an independent business that has fewer than ________employees
A. 20
B. 50
C. 100
D. 500
Answer: D
5
, Test Bank
Response: See 1.1
Level: Medium
Learning Objective: Discuss the importance of small business to the economy
4. Small businesses are important because they _________
A. Play an important role in the economic growth
B. Have happy employees
C. Are willing to take risks
D. Have experienced managers
Answer: A
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
5. Which of the following helps small businesses with assistance, loans, and federal contract
procurement?
A. The Business Lounge
B. International Business Brokers Association (IBBA)
C. Small Business Administration (SBA)
D. Presidents Association (PA)
Answer: C
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
6. What is NOT true about the U.S. Small Business Administration (SBA)?
A. It is a federally funded agency
B. It provides assistance and loans to small businesses
C. It helps small businesses with federal contract procurement
D. It is a local agency to promote interest of large corporations
Answer: D
Response: See 1.1
Level: Medium
Learning Objective: Discuss the importance of small business to the economy
7. Which of the following is true about small businesses?
A. Are eligible for SBA’s financial assistance programs
B. Are not eligible to sell to the set-aside programs of the federal government
C. Are not eligible for grants through the government
D. Are not eligible for SBA’s education and training programs
6
, Test Bank
Answer: A
Response: See 1.1
Level: Medium
Learning Objective: Discuss the importance of small business to the economy
8. The SBA’s standards for small businesses are based on _______
A. Number of employees and average annual revenues
B. Average annual revenues and industry
C. Number of employees and industry
D. Number of employees, average annual revenues, and industry
Answer: D
Response: See 1.1
Level: Medium
Learning Objective: Discuss the importance of small business to the economy
9. According to the SBA, most manufacturing companies with _______, and many non-
manufacturing businesses with _________ qualify as a small business
A. 500 employees or fewer; average annual receipts under $7.5 million
B. average annual receipts under $7.5 million; 500 employees or fewer
C. 1500 employees; fewer affiliates
D. 500 employees at firm level; affiliates
Answer: A
Response: See 1.1
Level: Hard
Learning Objective: Discuss the importance of small business to the economy
10. According to the SBA, small businesses file _______patents per employees than large
businesses
A. Less
B. Equal
C. More
D. Zero
Answer: C
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
11. Katie has recently opened a new beauty salon. You have been hired to advise Ms. Katie
with her business. Katie plans to hire 35 employees and needs loans to buy beauty
supplies, new equipment, and pay salaries. Katie’s business is an example of
A. A large corporation
7
, Test Bank
B. A family business
C. A small business
D. None of the above
Answer: C
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
12. _________refers to the effective administration of a small firm with the goals of survival
and improvement
A. Development program
B. Performance management
C. Human resource management
D. Small business management
Answer: D
Response: See 1.2
Level: Easy
Learning Objective: Define small business management and explain the role of
entrepreneurship in managing a small business
13. Which of the following is NOT a common form of misconduct in small firms?
A. Lying to customers
B. Lying to employees
C. Anticompetitive practices
D. Treating all employees with respect
Answer: D
Response: See 1.2
Level: Easy
Learning Objective: Define small business management and explain the role of
entrepreneurship in managing a small business
14. The ___________ is a metaphor used in business to suggest that a firm needs to
constantly think of improving, even to remain where it is at a given time
A. Red queen effect
B. Gazelles effect
C. Elephants effect
D. Blue queen effect
Answer: A
Response: See 1.2
8
Through Entrepreneurship, 1st Edition by
Vishal K. Gupta
Hello all ,
We have all what you need with best price
Our email :
Our website :
testbanks-store.com
, Test Bank
Chapter 1- Understanding Small Business
True/False
1. Small businesses play an important role in the economic growth of any country
Answer: True
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
2. Small businesses in U.S. employ about half of America’s private-sector employees
Answer: True
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
3. Most small businesses in U.S. are single-person firms with no employees
Answer: True
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
4. A small business is defined as one that is independently owned, operated, and is
nationally dominated in its field of operation; and has less than 150 employees
Answer: False
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
5. To classify a firm as a small business, the SBA counts employment at the firm level
Answer: False
Response: See 1.1
Level: Medium
Learning Objective: Discuss the importance of small business to the economy
6. According to the Small Business Administration, a small business is the one that has less
than 50 employees
Answer: False
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
1
, Test Bank
7. Small businesses file more patents per employees than large businesses
Answer: True
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
8. The minimum legal age requirement for starting a new business in U.S is 18 years
Answer: False
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
9. Small firms and large corporations have a symbiotic relationship
Answer: True
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
10. The Paycheck Protection Program (PPP) is a loan designed for large corporations to
provide compensation to their executives
Answer: False
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
11. Businesses recognized as large are eligible for SBA’s loan programs
Answer: False
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
12. According to the text, entrepreneurship involves identifying and pursuing new
opportunities to introduce novel goods and services to the market
Answer: True
Response: See 1.2
Level: Medium
Learning Objective: Define small business management and explain the role of
entrepreneurship in managing a small business
2
, Test Bank
13. Small businesses and entrepreneurship are complementary
Answer: True
Response: See 1.2
Level: Medium
Learning Objective: Define small business management and explain the role of
entrepreneurship in managing a small business
14. Owners of lifestyle businesses do not need to improve products and operations
Answer: False
Response: See 1.2
Level: Medium
Learning Objective: Define small business management and explain the role of
entrepreneurship in managing a small business
15. The large firms that stop growing at some point are known as whales
Answer: False
Response: See 1.2
Level: Easy
Learning Objective: Define small business management and explain the role of
entrepreneurship in managing a small business
16. The term ‘gazelle’ is used for those entrepreneurial small firms that have high rates of
growth
Answer: True
Response: See 1.2
Level: Easy
Learning Objective: Define small business management and explain the role of
entrepreneurship in managing a small business
17. A credit policy that is too lenient can cause collection and cash-flow problems later for
small businesses
Answer: True
Response: See 1.2
Level: Easy
Learning Objective: Define small business management and explain the role of
entrepreneurship in managing a small business
18. Entrepreneurship is a born trait and cannot be learned
Answer: False
Response: See 1.3
3
, Test Bank
Level: Easy
Learning Objective: Recognize the common myths and various benefits about small
business entrepreneurship
19. One should start a business ONLY when the demand for its goods or services is high
Answer: False
Response: See 1.3
Level: Easy
Learning Objective: Recognize the common myths and various benefits about small
business entrepreneurship
20. A growth mindset stipulates that one’s skills and qualities are mutable
Answer: False
Response: See 1.3
Level: Easy
Learning Objective: Recognize the common myths and various benefits about small
business entrepreneurship
21. One of the advantages of running your own business is that you get to do what you love
to do
Answer: True
Response: See 1.3
Level: Easy
Learning Objective: Recognize the common myths and various benefits about small
business entrepreneurship
22. US ranks higher than Canada on global indicators of commercial entrepreneurship
Answer: False
Response: See 1.4
Level: Easy
Learning Objective: Identify Various Forms of Entrepreneurship
23. In U.S., the desire to become a social entrepreneur is strongest for people between the age
of 25 and 45
Answer: True
Response: See 1.4
Level: Easy
Learning Objective: Identify Various Forms of Entrepreneurship
24. Facebook and Insomnia Cookies are examples of businesses started by student
entrepreneurs
4
, Test Bank
Answer: True
Response: See 1.4
Level: Easy
Learning Objective: Identify Various Forms of Entrepreneurship
25. Silver entrepreneurship is about students running their own business
Answer: False
Response: See 1.4
Level: Medium
Learning Objective: Identify Various Forms of Entrepreneurship
Multiple Choice Questions
1. In U.S., small businesses comprise more than _____percent of all employers
A. 40
B. 99
C. 50
D. 30
Answer: B
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
2. Small businesses employ _____of all private sector employees
A. Half
B. One-third
C. Two-third
D. One-fourth
Answer: A
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
3. A small business is an independent business that has fewer than ________employees
A. 20
B. 50
C. 100
D. 500
Answer: D
5
, Test Bank
Response: See 1.1
Level: Medium
Learning Objective: Discuss the importance of small business to the economy
4. Small businesses are important because they _________
A. Play an important role in the economic growth
B. Have happy employees
C. Are willing to take risks
D. Have experienced managers
Answer: A
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
5. Which of the following helps small businesses with assistance, loans, and federal contract
procurement?
A. The Business Lounge
B. International Business Brokers Association (IBBA)
C. Small Business Administration (SBA)
D. Presidents Association (PA)
Answer: C
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
6. What is NOT true about the U.S. Small Business Administration (SBA)?
A. It is a federally funded agency
B. It provides assistance and loans to small businesses
C. It helps small businesses with federal contract procurement
D. It is a local agency to promote interest of large corporations
Answer: D
Response: See 1.1
Level: Medium
Learning Objective: Discuss the importance of small business to the economy
7. Which of the following is true about small businesses?
A. Are eligible for SBA’s financial assistance programs
B. Are not eligible to sell to the set-aside programs of the federal government
C. Are not eligible for grants through the government
D. Are not eligible for SBA’s education and training programs
6
, Test Bank
Answer: A
Response: See 1.1
Level: Medium
Learning Objective: Discuss the importance of small business to the economy
8. The SBA’s standards for small businesses are based on _______
A. Number of employees and average annual revenues
B. Average annual revenues and industry
C. Number of employees and industry
D. Number of employees, average annual revenues, and industry
Answer: D
Response: See 1.1
Level: Medium
Learning Objective: Discuss the importance of small business to the economy
9. According to the SBA, most manufacturing companies with _______, and many non-
manufacturing businesses with _________ qualify as a small business
A. 500 employees or fewer; average annual receipts under $7.5 million
B. average annual receipts under $7.5 million; 500 employees or fewer
C. 1500 employees; fewer affiliates
D. 500 employees at firm level; affiliates
Answer: A
Response: See 1.1
Level: Hard
Learning Objective: Discuss the importance of small business to the economy
10. According to the SBA, small businesses file _______patents per employees than large
businesses
A. Less
B. Equal
C. More
D. Zero
Answer: C
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
11. Katie has recently opened a new beauty salon. You have been hired to advise Ms. Katie
with her business. Katie plans to hire 35 employees and needs loans to buy beauty
supplies, new equipment, and pay salaries. Katie’s business is an example of
A. A large corporation
7
, Test Bank
B. A family business
C. A small business
D. None of the above
Answer: C
Response: See 1.1
Level: Easy
Learning Objective: Discuss the importance of small business to the economy
12. _________refers to the effective administration of a small firm with the goals of survival
and improvement
A. Development program
B. Performance management
C. Human resource management
D. Small business management
Answer: D
Response: See 1.2
Level: Easy
Learning Objective: Define small business management and explain the role of
entrepreneurship in managing a small business
13. Which of the following is NOT a common form of misconduct in small firms?
A. Lying to customers
B. Lying to employees
C. Anticompetitive practices
D. Treating all employees with respect
Answer: D
Response: See 1.2
Level: Easy
Learning Objective: Define small business management and explain the role of
entrepreneurship in managing a small business
14. The ___________ is a metaphor used in business to suggest that a firm needs to
constantly think of improving, even to remain where it is at a given time
A. Red queen effect
B. Gazelles effect
C. Elephants effect
D. Blue queen effect
Answer: A
Response: See 1.2
8
