01-05 Recognize
how small
businesses are
important to our
economy and your
community.
Big business often has trouble with innovations, but small, new, businesses are more likely to see
new revenues in innovations.
True
False
Innovations are far more likely to come from new, small businesses.
References
True / False Learning Objective:
01-05 Recognize
how small
businesses are
important to our
economy and your
community.
13.
Award: 1.00 point
14.
Award: 1.00 point
Using low-cost or free techniques to minimize cost of doing business is referred to as
bootstrapping.
True
False
Bootstrapping is using low-cost or free techniques to minimize cost of doing business.
References
True / False Learning Objective:
01-03 Dispel key
myths about small
businesses.
Ninety percent of all new businesses fail within two years.
True
False
This is a myth about small-scale businesses. This statement is wrong in two major ways. First, the
percentage is wrong, and second, the majority close but don’t fail.
References
True / False Learning Objective:
01-03 Dispel key
myths about small
businesses.
15.
Award: 1.00 point
16.
Award: 1.00 point
The most frequently occurring element of the BRIE model is intention.
True
False
Intention is the desire to start a business and is the most frequently occurring element of the BRIE
model.
References
True / False Learning Objective:
01-04 Identify
actions key to
becoming a small
business.
In the BRIE model, exchange refers to moving resources, goods, or services to others, in exchange
for money or other resources.
True
False
Exchange refers to moving resources, goods, or service to others, in exchange for money or other
resources.
References
True / False Learning Objective:
01-04 Identify
actions key to
becoming a small
business.
17.
Award: 1.00 point
18.
Award: 1.00 point
The disadvantage of the BRIE model is that it does not mention the management of resources.
True
False
Resources is the “R” in the BRIE model.
References
True / False Learning Objective:
01-04 Identify
actions key to
becoming a small
business.
One of the seven key strategies of the entrepreneurial way involves effectuation or an approach
used to create alternatives in uncertain environments.
True
False
Effectuation is used in the “Bird in the hand” strategy where instead of planning a firm and then
looking for resources, the entrepreneur first looks at their available resources and thinks about how
to use them.
References
True / False Learning Objective:
01-06 Recognize the
seven key strategies
of the
entrepreneurial way.
19.
Award: 1.00 point
20.
Award: 1.00 point
High-growth ventures and big businesses generally do not succeed without small businesses
offering supporting services.
True
False
Without small businesses offering supporting services or offering to subcontract at low cost to the
high-growth ventures and big businesses or creating the kinds of communities where creative and
entrepreneurial people like to live, the big businesses will not succeed.
References
True / False Learning Objective:
01-05 Recognize
how small
businesses are
important to our
economy and your
community.
Small businesses are important to the U.S. economy but do very little for local communities.
True
False
Small businesses offer communities the opportunity to enjoy goods and services, also very
important.
References
True / False Learning Objective:
01-05 Recognize
how small
businesses are
important to our
economy and your
community.
21.
Award: 1.00 point
22.
Award: 1.00 point
Taking products and services made in your home country and selling them in other countries is
called importing.
True
False
This is the definition for exporting.
References
True / False Learning Objective:
01-05 Recognize
how small
businesses are
important to our
economy and your
community.
The ________ is a U.S. government agency that helps people start a business and also provides
them support and advocacy.
Small Business Administration
U.S. Department of Business Development