represents about 20 percent of all businesses
typically has sales of $25,000 a year or less
aims for growth rates of 25 percent or more a year
Lifestyle or part-time firms typically have sales of $25,000 a year or less, which provides enough
profit or salary to supplement an income but usually not enough on which to live.
References
Multiple Choice Learning Objective:
01-02 Differentiate
between small
businesses and
high-growth
ventures.
Which of the following is true of a part-time firm?
starts small and stays small
has continuous growth
success is defined by annual profits of $1,000,000
aims for growth rates of 25 percent or more a year
Lifestyle or part-time businesses start and stay very small, often operating seasonally or when the
owner wants to work in the business.
References
Multiple Choice Learning Objective:
01-02 Differentiate
between small
businesses and
high-growth
ventures.
40.
Award: 1.00 point
41.
Award: 1.00 point
The text defines an entrepreneur as
a person who purchases an existing business.
working for yourself.
characterized by being different or new.
a person who owns or starts an organization, such as a business.
An entrepreneur is a person who owns or starts an organization, such as a business.
References
Multiple Choice Learning Objective:
01-01 Understand
the scope of small
business in the
United States.
Which of the following categories does the majority of small businesses fall under?
high-growth ventures
high-performing small businesses
lifetime/part-time firms
traditional small business
About 53 percent of all small businesses fall into the category of lifetime/part-time firms.
References
Multiple Choice Learning Objective:
01-02 Differentiate
between small
businesses and
high-growth
ventures.
42.
Award: 1.00 point
43.
Award: 1.00 point
________ are the smallest full-time business.
High-performing small businesses
Traditional small businesses
High-growth ventures
Lifestyle businesses
Traditional small businesses are the smallest full-time businesses.
References
Multiple Choice Learning Objective:
01-02 Differentiate
between small
businesses and
high-growth
ventures.
Which of the following answer options is not one of the four generic overall growth strategies?
a part-time firm
a traditional small business
a franchise
a high-performing small business
A franchise is a type of business but it is not an overall growth strategy as are the other three
answer options.
References
Multiple Choice Learning Objective:
01-02 Differentiate
between small
businesses and
high-growth
ventures.
44.
Award: 1.00 point
45.
Award: 1.00 point
Which of the following terms is not one of the four steps in the successful entrepreneurial process?
seek
do
plan
check
Seek is not one of the four steps in the entrepreneurial process.
References
Multiple Choice Learning Objective:
01-01 Understand
the scope of small
business in the
United States.
Which of the following actions is performed during the plan step of the entrepreneurial process?
feasibility analysis
customer development processes
pilot testing
revising your planning approach
Pilot testing is performed during the plan step of the entrepreneurial process.
References
Multiple Choice Learning Objective:
01-01 Understand
the scope of small
business in the
United States.
46.
Award: 1.00 point
Sven opening his own business servicing private swimming pools. Sven worked hard to build up his
customer base, often performing services on last-minute notice, or even on holidays and weekends.
Now, Sven has a comfortable number of routine services he provides for his customers and his
business is profitable enough to support himself and his family. Which type of business does Sven
likely own?
a lifestyle business
a traditional small business
a high-performing small business
a unicorn
In traditional small businesses, growth levels off after operations settle into a consistent, money-
making pattern, generating enough income to provide a living for the owner and family.
References
Multiple Choice Learning Objective: