U.S. Department of Commerce
U.S. Entrepreneurial Administration
Small Business Administration (SBA) is a part of the U.S. government, which provides support and
advocacy for small businesses.
References
Multiple Choice Learning Objective:
01-01 Understand
the scope of small
business in the
United States.
23.
Award: 1.00 point
24.
Award: 1.00 point
Truly entrepreneurial businesses are characterized by
the franchise they are associated with.
the degree to which their products are imitative.
the novelty in their products, services, or business models.
the ease with which their product is accepted by the buyers.
Truly entrepreneurial businesses are characterized by novelty, in their products, services, or
business models.
References
Multiple Choice Learning Objective:
01-01 Understand
the scope of small
business in the
United States.
Small businesses are usually
imitative in nature.
characterized by the novelty of their products.
the same as high-growth ventures.
not affected by market fluctuations.
Small businesses are imitative in nature, with most small firms doing what other firms do, with only
slight variations.
References
Multiple Choice Learning Objective:
01-01 Understand
the scope of small
business in the
United States.
25.
Award: 1.00 point
26.
Award: 1.00 point
Which of the following statements is true of a franchise?
Franchise is the international term for all small businesses.
A franchise is a type of novelty organization.
A franchise is an organization that provides loans to start small businesses.
A franchise is a prepackaged business bought, rented, or leased from a company.
A franchise is a prepackaged business bought, rented, or leased from a company called a
franchisor.
References
Multiple Choice Learning Objective:
01-01 Understand
the scope of small
business in the
United States.
A person who becomes an owner by inheriting or getting a stake in a family business is known as
a founder.
a franchisor.
an heir.
a serial entrepreneur.
Heirs are those who inherit or are given a stake in the family business.
References
Multiple Choice Learning Objective:
01-01 Understand
the scope of small
business in the
United States.
27.
Award: 1.00 point
28.
Award: 1.00 point
A business owned by an individual or a small group is referred to as a(n)
corporate chain.
conglomerate.
concern.
independent small business.
Independent small business is a business owned by an individual or small group.
References
Multiple Choice Learning Objective:
01-02 Differentiate
between small
businesses and
high-growth
ventures.
A business run by the individual who owns it is referred to as a(n)
franchise.
owner-managed firm.
social venture.
unicorn.
A business run by the individual who owns it is referred to as an owner-managed firm.
References
Multiple Choice Learning Objective:
01-02 Differentiate
between small
businesses and
high-growth
ventures.
29.
Award: 1.00 point
30.
Award: 1.00 point
Which of the following statements is true of a small business?
The preferred funding source for a small business is other people's money.
When facing bankruptcy, a small business is likely to sell more rather than cut costs.
Small businesses consider sales as more important than marketing.
For a small business, the focus is more on effectiveness than on efficiency.
For a small business, sales are more important than marketing.
References
Multiple Choice Learning Objective:
01-02 Differentiate
between small
businesses and
high-growth
ventures.
Small businesses differ from high-growth ventures in that in small businesses
the focus is on effectiveness rather than efficiency.
the preferred source of funding is the owner's own money rather than other people's
money.
the delegation of responsibilities is easy and necessary rather than difficult.
the metastrategy is for novelty rather than imitation.
In small businesses, the preferred source of funding is the owner's own money rather than other
people's money.
References
Multiple Choice Learning Objective:
01-02 Differentiate