Test Bank For Small Business Management Launching & Growing Entrepreneurial Ventures y Justin G. Longenecker 21st Edition Chapter 1-23 Chapter 1 1. The universally accepted definition of the term small business is based on the number of people employed by the firm. a. True b. False ANSWER: False 2. According to the text, the term entrepreneur refers to small business founders only. a. True b. False ANSWER: False 3. The term bootstrapping refers to the practice of bartering rather than buying with cash or credit. a. True b. False ANSWER: False 4. Entrepreneurs should avoid hiring mediocre people. a. True b. False ANSWER: True 5. Successful entrepreneurs should be aware of their strengths and weaknesses and be willing to strive toward goals. a. True b. False ANSWER: True 6. Compared to large corporations, small businesses a. play just as important if not a larger part in the economy.
b. represent less than 1 percent of all firms with employees.
c. account for 55 percent of private payrolls.
d. generated 20-40 percent of all new jobs in the last decade.
ANSWER: a 7. Which of the following types of businesses makes up the largest sector of the US economy? a. small business b. microbusiness c. lifestyle business d. attractive small firm